The world is on edge.  Never before in our lifetime have we been told to isolate, social distance, and in the same voice being told that everything will be ok.  Whatsmore, we are being told now more than ever to sit back and trust the government.  Sometimes these are hard words to swallow, but what choice to we have?

COVID-19 is more than a virus, it is an attack on our way of life and our freedom.  The discomfort we are all feeling by not being able to socialise, but not being able to go to your local restaurant or pub with our family, is called grief.  Grief of our way of life; the way things were; the adjustment; and the fear that things will never be the same again… In some cases, life will never be the same again.

As the world changes, we, within ourselves change too.  It may be that things are currently changing so fast that we struggle to catch up that we end up in a cycle of overwhelm.  This is the reality for most Australians, and people all over the world right now.  So, what can you hope for on the other side of COVID-19?  Restored freedom?  Life to go back to how it was?  What is your perception of reality?

What is freedom?

Freedom is the perception that we have free-will and are able to go about our lives as if we were in complete control.  What happens when the veil is lifted?  COVID-19 has done just that, and it has shown the fragility of life that we are all living in.  As individuals, as governments, as businesses, as life, we have not been prepared for what is coming…

COVID-19 VS Debt

What if debt was a virus?  An attack on our way of life, on our freedom and on our rights to live the life we have always wanted to live.  How can it be that debt has so much control of our life?  Well, debt acts the same as a virus… it defines your life, denies you options when you are overwhelmed, and robs you of your future when it spirals out of control.  What if you became an introvert to your debt?

We think we are doing ok, that we are earning “good money” and that life will be the same forever, but life changes in the blink of an eye; in the snap of your fingers; and remains forever changed.  Since the birth of Adelaide Budgeting we have asked people, what would happen if you lost your job tomorrow?  Do you know your numbers?  How can you survive and thrive within your own life if you don’t know where you are going?  We are now living in the times where these questions are most pertinent.

How much MONEY do we need to survive?

As Australians, each and every single one of us are only a day away from homelessness if we lost our jobs tomorrow.  Think about it.  How could you live your way of life now, if your salary was gone tomorrow?  How would you make your repayments on your mortgage?  How would you pay your car loan or put food on the table for your children?

A typical single person earning $900 net per week, would need $11,700 to self-isolate for 3 months without any government support.

A typical family earning $1800 net per week, would need $23,400 to self-isolate for 3 months without any government support.

What if you needed to self-isolate for double this time?

Never has it been more imperative to have a budget in place, but not just any budget… a budget that encompasses your long and short-term goals, has a strategy around debt, a savings plan, and some spending caps in place that does not limit your lifestyle.  A budget that has your future planned and mapped out so if something did happen, you had a financial buffer and a backup plan.  COVID-19 has shown us that very few of us are in the position to be able to help ourselves and I really think that’s disappointing.  The right budget for you should be simple to implement, fun to work with, and be able to show you how you are moving forward with financial freedom in your life.

Do you have a backup plan or a budget in place?  Do you know how much it costs to be you; for each day of your life?  If you do not know your numbers then a budget is KEY going forward to help you live the life you have always wanted.  Is it time to put your plan in place?

Rather than adapting a mantra of “the world is ending” or “the sky is falling” and stocking up on toilet paper due to the imminent threat of corona virus, we thought we would take an approach of humour that still provides a modicum of helpful information.  There is so much mis-information and fear being spread about the “global pandemic” and imminent destruction about our way of life that most people are not thinking straight as the media manipulates our mindset…

Beware – We are all going to die!  It is the sole purpose of our experience as part of the human race that we are born and that we die… once we address the elephant in the room and take a deep breath (but do not cough) we can ground ourselves and move forward.

People are losing their minds

When the very essence of life becomes threatened, people become fickle and do what ever they can to protect their way of life.  What is the reason people are stockpiling toilet paper?  Is it because one person sneezes, and a hundred others shit themselves?  It doesn’t make sense, yet the recent corona virus has seen people arrested in shops, fighting over toilet paper at Woolies and Coles and people in general losing their minds!

We live in an uncertain age where the potential of a global meltdown hits reality.  With reliance on China and imported products from China in our construction industry… it begs the question.  What happens when supply stops?  Builders cannot progress their works, workers have zero product to work with, and everything grinds to a halt.  Corona will have a ripple effect that WILL affect you, and will affect the global economy.  Corona fallout will be felt by EVERYBODY.

Think about the process of building… you need:

• Suppliers to manufacture product.
• Purchasing officers to purchase the product.
• Logistics and warehousing staff to hold, store, and distribute the goods.
• Internal admin staff to process invoices from the sales.
• Builders in business winning contracts to build the projects.
• Trades to keep the project moving forward
• Finance (as in lending and banks) funding the process.

And many more links in the chain to make it all happen… So, what happens when the project stalls?  Logistics staff are laid off, builders go bust as they cannot receive progress payments without progress, trades will struggle to find work…. And the inevitability – mass lay-offs due to a little virus.

Let’s look at the facts…

People will lose their jobs, the economy will be hit hard, life will change, but then…. Everything goes back to normal.  So how do you prepare yourself for the “unknown” part in-between?

1- Prepare yourself with extra funds should you need to quarantine yourself and your family for up to 2 weeks.  Consider boosting your savings so that you could cover at least 2 months of your annual salary.  Little things like packing lunch or selling unwanted items can really help you to generate long-term savings.

2- If you are well, and can give more in your day work a little extra if you can.  Extra funds can be put away should the need arise that you are unable to work for an extended period of time.

3- Utilise technology when comes to meetings with other professionals and/or working.  Can you work from home?  Can you utilise Skype or Zoom for meetings with your boss or other co-workers?

4- Consider the reality of a job loss.  What reality would this have for your family and your way of life?  How would a job loss affect you tomorrow if you are not prepared?  All the more reason to have a clear and concise plan in place.

5- Avoid large crowds, and network only if you must.

6- When it comes to investments, consider what your opportunities may be in shares and investments!  What goes down, must come up and vice versa… don’t forget to also consider property.  Always speak with the accredited experts in their fields.

Global, life changing events like this leave many people with an overwhelming sense of uncertainty, especially with our finances.  Financial overwhelm is evident in panic buying, and people really not knowing what to do to protect themselves.  We suggest, take a step back approach, look at what you need, map out a plan, and if you need help with your “doomsday prepping,” then have a chat to us.  We are available to meet via Zoom or face to face if you prefer and would love to help you prepare for the worst and the best days of your life!

If all else fails go and grab a nice cold Corona, kick back with a few chicken wings and let this whole thing blow over….