DON’T PANIC, PLAN
What an interesting start to March 2023 in the world of finance.
All around the world we are seeing consistent rate rises for mortgage holders and inflation having a massive impact on the cost of living and our way of life. Locally we have experienced another rate rise (with even more predicted by economists until 2024) from the RBA adding to further pressures on the household budget, and on top of this we are now seeing top tier banks collapse in the US.
In the wake of the Silicon Valley Bank collapse, the impact on over 40,000 small businesses as their payment gateways has forced delays in payroll to employees, and delay in received payment from customers purchasing products.
As panic is setting in for those unaware, and unprepared, the evidence of bank runs in the US and around the world adds pressure to other banks and their commitment to provide their clients with their funds at a very stressful time.
What if the banks don’t have available funds to give to you?
It’s no doubt in our mind that we are in for challenging times ahead as many people all around the world are feeling vulnerable and uncertain about their financial future. If you haven’t already, please know that NOW is the time to get your head out of the sand and prepare as best you can.
Prepare a financial check list of what you need, not what you want, but what you actually need.
Do you know how much you need each week to put food on the table for your family?
Do you know how much you need each week to cover all your bills?
Do you have access to cash or a pantry that is well stocked in the event of being unable to withdraw or access cash?
What would you do in the event of your bank going down?
These questions might seem a little full on, a little direct and a little out there, but they are real for many. You might be thinking right now, Andrew/Alyssa, how are we going to have access to any cash when all our monies are exhausted every single week? It’s easy, but requires YOU to get motivated.
1 – Get motivated and set your plan.
2 – Work your budget to reduce all known expenses.
3 – Truly understand where your money is going and curb unnecessary spending.
The above 3 steps will allow you to make informed financial decisions to reduce your overheads, will allow you to prepare a cash buffer in the event of an emergency, and will allow you to have a fully stocked pantry with food, water and medicine where needed.
What would happen to you and your family without a plan if you woke up tomorrow and your bank, along with your finances and account balances were gone? It might be time for you to book in your Discovery Meeting with us to learn more about how we can help you going forward…
There is no need to panic when you have a plan in place. What will you choose to do?