How to survive the next 90 days
How to survive the next 90 days
- April 8, 2020
- Posted by: Daniel McGregor
Another week, another million announcements and life changing moments… It feels a bit overwhelming!
I know a lot of people are struggling to cope. Many households have seen a drop in income and are trying to work out how they make ends meet. I hope this will help…
We don’t know how long this will all go on for, but it will end, and we just need to make it through to the other side.
Let’s be optimistic and hope that in three months’ time, things are starting to look a bit more like what we used to know.
If that’s the case, then we need to get through the next 90 days, and for many of us, that will require a spending overhaul.
It’s time for you to start running your eye over your numbers…
- Write down how much income you will have each fortnight. (I know for some this is not certain at the moment.) Multiply this by 6 and that’s how much you will earn over the next 90 days.
- Write down all of your fixed expenses. This will include things like rent, mortgage, rates, household bills, phone, internet, gas, electricity, insurances etc. Some of these will be monthly, others quarterly, some annual payments. Grab your calculator and work out how much these fixed costs will be over the next three months (make a logical guesstimate if you need to).
- Take away your fixed costs from your expected income and divide this number by 12. That’s how much you have each week to put towards living.
Is this enough to get by?
If not, then here’s a checklist you can work your way through…
- Assess how much you have in savings (which could also include redraw capacity you have on your mortgage). How long can these savings help you get by? This will help determine how big an adjustment you need to make.
- Don’t just keep paying your bills. Ring every provider you deal with and see what kind of deal you can negotiate. Look to remove added extras you don’t need, cancel subscriptions you rarely or never make use of, increase the excess on your insurances, etc.
- Cook from scratch where possible. It’s a great way to reduce the food bill, which for many families is a big expense item. And shop with a list!
- Talk to your bank if you have debt. Talk to your landlord if you pay rent. Ask for help.
- Assess what government support you may be entitled to and invest the time to apply. This could also include accessing some of your superannuation, but this has serious long-term implications. For retirees, there is the option to reduce pension payments.
- Know exactly where your money is going. Keep track of your spending, use an app like Pocketbook to help.
- Review your spending each week. You may not have seriously reviewed your spending for years… now is the time to be paying attention and giving every dollar a purpose. And if you have a partner, make sure this is something you are doing together.
- Make regular adjustments to keep streamlining your spending and become a lean, mean, budgeting machine. The habits you create now are what will then enable you to take the next step on the other side of this.
Everyone has a certain amount of money they need to survive. Right now, how can you make yours as little as possible to see you through the next 90 days and come out the other side in reasonable shape?
I’m keen to hear from you about what I can help with… If you have any burning questions, please email me at email@example.com and let me know what you’d like to know.