There are 50 new cases of Covid-19 in New Zealand - the lowest daily total reported in a fortnight.
Many people will be struggling with how to financially get through the Covid-19 lockdown and beyond. Rotorua Budget Advisory Services manager Pakanui Tuhura explains where to get help.
How do people budget through a Covid-19 crisis?
During the lockdown people are being asked to stay at home and therefore theirspending will be limited to buying food and essentials for the most part so if their income has remained the same as pre-lockdown they should be ultimately better off.
Look at how much income you expect to get over the four weeks of the lockdown and list all your necessary expenses for the same period (ie, rent/mortgage, power, food), this should leave a surplus. If it doesn't contact Work and Income and see if you are eligible for emergency assistance. Then contact the people you owe money to and see if you can get your debt repayments put on hold or reduced through this period if you have suffered a reduction in income.
If you can't, then phone us and we may be able to advocate on your behalf, review your budget or refer you to organisations out there providing support.
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What advice do you have for owners of small businesses and homeowners to get through this isolation period?
The only advice I would give to small businesses at this time is to watch the daily updates being given by the Government and apply for all support packages (eg, wage subsidy) and communicate with landlords if they are having problems paying their rents (eg, Government's rent freeze and eviction policies). Homeowners should look at interest-only mortgage payments first (if that option is open to them) and because the mortgage holiday announced by Government will only last six months, they need to plan ahead for when their mortgage restarts. If they have lost their jobs then they will need to factor in finding new employment post-mortgage holiday. Again we are here to help.
What advice do you have for a typical family household?
In terms of rent, and mortgages, the same as above. Talk to your landlord/bank and work out an accommodation (excuse the pun) that will allow you to get through that also doesn't severely impact your landlord or bank. Remember that is their source of income and they need to get through the lockdown as well. It's much better to negotiate a discounted rent that you can afford than to stop paying completely.
How many calls has Rotorua Budget Advisory Service received since the lockdown and what was the nature of these calls?
Actually, we have had very few calls since the lockdown. I think people are in shock out there and they are looking for short-term direct help with rent, food and power as they isolate into their bubbles. We are an advisory and planning organisation for longer-term gains. Once the short-term needs are met we would welcome them to contact us to prepare for post-lockdown. Our contact number is 07 346 3236 or rbas@rotoruabudgetadvice.co.nz. During lockdown we are only able to provide phone, email and if a client is able to, video conferencing advice and help. Come post-lockdown we will be back to face to face as soon as we can.
How much should people have in their savings to make it through?
There have been a lot of people giving various amounts of savings needed to cope with the emergency. Really it's a moot point. In the end you will have whatever savings you have and will spend them if needed. If you want a figure then add up the cost of your needs (food, accommodation, power, communication) and take that away from your income over the same period.
If there is a deficit then you will need to use savings or find someone who provides these things free or will help you pay for them (eg, Sallies, Whanau ora, MSD, etc). Savings shouldn't be used to buy online goods from overseas that aren't necessary. If you don't have savings then work through all of those necessities and make sure you haven't included non-essentials (eg, downloading the latest Call of Duty internet game). Each person out there knows the best way to spend their money but sometimes we forget the difference between necessities and luxuries.
I suggest that if you want an answer to this you should speak to your KiwiSaver provider. However I did see one such person on the telly who stated that now was an even better time to invest money because businesses' shares and stock prices are really low at the moment and once we are out of lockdown those prices will rise. Personally I am willing to leave my KiwiSaver where it is and let it help support businesses as they emerge from the crisis.
A final message
The Prime Minister and Government are absolutely right when they stated we are all in this together and the post-lockdown world will be changed in some cases beyond recognition. However we need to take care of ourselves and those around us now and perhaps take time to plan for that new world while we sit in isolation. Rotorua Budget Advisory Service is here to help you with organising your money matters through the lockdown and planning for the future. You know where we are.
