Lifestyle

How to Build Financial Resilience in a Crisis – 7 Expert Tips From a Debt Coach

I am a planner. That’s why I keep a diary. A diary gives me an idea of what to expect, a sense of control.

Of course, I didn’t have coronavirus in my diary, I didn’t expect it, and there is very little I can do to control it.

Even if you don’t keep a diary, most people like to know what’s around the corner, so you can be prepared. As humans we thrive off consistency, routine and the feeling of control. If we don’t feel in control, we panic — and buy boat loads of toilet paper.

“If we’re not in control, why bother having a budget? The answer is, because it will help us become financially resilient.”

I especially like to feel a sense of control over my personal finances; that’s why I have a budget. Coronavirus didn’t feature in my budget either.

This uncertain season has reminded me of the difference between being in control, and being resilient. The truth is, I don’t have total control over the state of my finances or market forces that affect them – only God is in control.

But if I am not in control, then why bother having a budget? The answer is, because it will help me wisely cultivate financial resilience, using the resources given to me. Resilience is about being flexible, durable and able to last when the unexpected happens.

Seven Steps Towards Financial Resilience

photo of a calculator

The financial resilience of many people in our nation is about to face a great challenge. But even if you’re swimming in an ocean of debt, it is never too late to start turning the ship around, and working towards a healthier position.

We will probably all feel the effects of this crisis in some way or another, so it’s wise to take time to consider what position you are in financially right now.

Here are some things I’m doing to build financial resilience, that you can do, too.

1 – Talk about your budget

The first step towards financial resilience is simple, but often avoided: start talking about it! My wife and I usually sit down together once a month to talk about our budget. It’s a good chance to take stock and consider what is coming up, and make adjustments. Bring that date forward. Set aside some time in the next few days to talk about money with your spouse, partner, or – if you’re on your own, find someone you trust who you can talk to about it. If you have never written a budget or talked much about money, now is a good time to find your next CAP Money course and get started.

2 – Consider your current money priorities

I know we all like to consider ourselves ‘Aussie battlers’, but the truth is, most of us have more than we need, and our money is mostly spent on wants. Now is a good time to consider where to ‘cut costs’, ‘cut back’ or ‘cut out’, in line with new and changing priorities. Some things may have to change for a while.

3 – Cut up the credit card – yes, really!

Living on credit does nothing to build our financial resilience. If things start getting tight, the last thing I need is a debt I can’t afford to pay. Please – stop using your credit card. Your frequent flyer points are no good when airlines are grounded; and debit cards can do everything a credit card can.

4 – Live below your means

When we spend every dollar we earn, it is impossible to build any financial resilience. The only way to put money aside for the unexpected is by spending less than you earn.

photo of Australian money in a jar

5 – Give others support

You may feel okay with where you are at financially, and if so, that’s great! If that is you, in a time like the present crisis, being financially comfortable comes with a responsibility to check in with those around you. You don’t have to be a financial adviser or counsellor to ask friends, family and colleagues how they are going.

6 – Reach out for help

You might be starting to really worry about what is to come. Maybe all this talk of financial resilience is making you worry that you won’t be able to weather the storm. If so, ask for help. People can’t help you if they think everything is fine. If you don’t know anyone in your close circle who can assist, call CAP on 1300 227 000, and a debt counsellor will be able to talk to you, listen to your situation, and guide you in some positive steps forward.

7 – Pray!

The Bible teaches us not to be anxious; not because there is nothing to worry about, but because God knows and loves us, and has promised to take care of us. By taking things one day at a time (remember, he asks us to pray for our daily bread, not our monthly bread!), we can rest knowing God is in control and knows our needs.

In fact, this last step is the most important. All the money in the world can’t protect us from the unknowns of tomorrow, and the anxiety of not being in control. But a trust that is built on the promises of God, is a safety that cannot be shaken.

Budgeting will change your life for the better

Financial resilience might start with a budget; something material. In time, however, these habits form a strength of character, with deep roots that can’t be shaken. My prayer is not just that you would be financially resilient at this time, but for people faith, I also pray that the discipline of budgeting builds a resilience in you that’s rock solid, thanks to the confidence we have in Jesus.

Find out more

Article supplied with thanks to Hope Media.

How Businesses can Recalibrate During Times of Crisis

In the last few weeks, it has seemed that every day has brought yet another piece of bad news, pushing the world deeper and deeper into crisis mode. With more and more job losses, confirmed cases of Covid-19 infection and uncertainties arising, it is difficult to see the opportunities being offered by a crisis like this.

It is undeniable that Coronavirus has violently disrupted the way we do normal life. The one unique gift it is giving us, however, is space. In the most literal sense, it is giving us physical space from each other and for many of us, from our regular offices, commutes and meeting places. More than that, it is giving us space to recalibrate.

‘Getting back to basics’ is a critical first step to take when crisis hits – as the Ford Corporation did back in the 1980s. Despite being one of the most enduringly successful brands in the world, Ford got into serious trouble in ‘80s. In the space of just three years, Ford had lost over $3.3 billion, or almost half of the company’s net worth.[1] In the face of crisis, Ford’s executive leadership team was courageous. Instead of knee-jerk responses, the executive team chose to ask some fundamental questions: Who are we as a company? What do we stand for? What made us great in the first place? Is it possible we have lost sight of these things along the way?

After a period of reflection, Ford’s leadership identified what became known as the company’s 3 Ps – people, products and profits – in that order. More than some formulaic mission statement or an exercise in navel gazing, this process of reflection re-calibrated Ford with the very ideology the company’s founder had championed in the business’s early days. Furthermore, it gave Ford’s leadership a simple blueprint for future decision-making which contributed to the company’s sustained turnaround in the years that followed.

Put simply, re-calibration is about ensuring there is alignment between a brand or organization and its key values. It is about making sure that what you are doing and how you are doing it lines up with who you are and why you exist in the first place. It may not be sexy or spectacular, but it is critically important and being ‘off’ even by a few degrees can make all the difference when compounded over time.

Most businesses and organizations set out with a clear idea of who they are and why they exist. However, as the ‘what’ and ‘how’ get repeated, entities begin to focus on processes and lose sight of their purpose or outcome. Naturally, the longer we do something a certain way without thinking, the harder it becomes to stand back, get our bearings and make sure we are still going in the right direction.[2] Sometimes it takes a crisis to shock us into the consideration of this; the benefit of the unique crisis we are currently in is it has also given us the time and space to actively engage in this re-calibration.

The first key for an organization is to re-calibrate itself with what the French call a raison d’etre – or the fundamental reason or purpose for existence. In corporate speak, this is often referred to as an organization’s DNA.

Organisational DNA is comprised of two crucial elements:

1. Defining Values. Values should not simply be a tokenistic and polished statement of impressive sounding virtues but a guidepost for strategy and a touchstone for decision-making. They are a living thing – something central to the daily life of an organization or brand.

The space and the awakening this crisis is providing us with is also giving us a great insight into what our true values are, both as companies and as individuals, and is offering us an opportunity to fortify these values moving forward.

2. Driving Purpose. This second component of an organization’s DNA is equally important. While defining values require you to answer the question of why do we do things the way we do, the question of driving purpose is one that goes to the very heart of relevance: why do we do what we do at all?

Although many organizations have attempted to answer this question by crafting vision statements or mission statements, these are all-too-often a concoction of policies, practices, strategic aims and goals. True driving purpose, however, is more fundamental long-term and even philosophical than these things.[3]

It involves the true reason for the existence of the company, posing questions such as, ‘If you were to cease to exist tomorrow, what would be lost?’ With the threat of this philosophical question seeming very real to many businesses in the economic uncertainty of our current world, there is more reason than ever to find an authentic answer to such questions, which will provide the motivation and direction to move forward when the crisis is over.

Re-calibration is a fundamentally crucial practice for all businesses to engage in regardless of the state of the world. However, it is when crisis hits that we are able to see with a unique clarity the true internal state of our businesses. This crisis has given us the opportunity to not only access this clarity but to act on it in the time and space that has been afforded to us.

Although Coronavirus has had some truly devastating effects, it is giving us a moment of time to pause and reflect in all facets of life which is quite literally a ‘once in a century’ opportunity.

Article supplied with thanks to Michael McQueen.

Townsville City Council is urging residents to check-in, at a safe distance, on their neighbours and make sure they’re not feeling isolated or worried about novel coronavirus (COVID-19).

Council has developed a G’day Neighbour postcard for people to drop into letterboxes and let their neighbours know they’re thinking of them and available to help with things such as picking up groceries, walking their dog or posting mail. A Council spokesperson said the postcard is a great way for people to safely connect with residents on their street. “The G’day Neighbour postcard is a simple way to reach out to your neighbours and let them know how you’re able to help them if needed,” the spokesperson said.

The postcard highlights four ways people can make a positive difference in the community. These are:

  • Think of others, consider your actions and show compassion – be kind
  • Check on your neighbours – give them a call
  • Support vulnerable or isolated people
  • Share only accurate information and advice from trusted sources.

“Council is particularly encouraging residents to reach out to the elderly and those who are vulnerable or isolated.” The spokesperson said the postcard also highlights the best way to reduce the risk of getting coronavirus. “The postcard urges people to wash their hands regularly, use hand sanitizer between washes and avoid touching their face, nose and mouth,” the spokesperson said.

“It also reinforces the advice to remain at least 1.5 metres from other people.”

 

Residents can download the G’day Neighbour postcard from http://bit.ly/2ID9rVP

 

 

Pools, water parks to close

All Townsville City Council-owned pools as well as the Rockpool and water park on The Strand and the Riverway lagoons will close today in line with the Federal Government’s new social distancing restrictions to help slow the spread of the novel coronavirus (COVID-19). Mayor and Townsville Local Disaster Management Group (TLDMG) chairperson Jenny Hill said the new rules put in place by the Federal Government last night were clear.

“The Prime Minister last night announced that all pools and sporting activities were to close down as Australians work to slow the spread of COVID-19,” Cr Hill said. “For Townsville City Council that means that we have to close the Rockpool, The Strand Waterpark, Long Tan Memorial Pool, Kokoda Memorial Pool, the Northern Beaches Leisure Centre and the Riverway lagoons. “All pool lessees have been notified. Pools and the Strand Waterpark will close from 5pm today. Barbecues are also being disconnected in these areas as per social distancing restrictions.

“Council is following the advice of the Federal Government closely. Council will also close Perc Tucker Regional Gallery, all CityLibraries, community centres and its customer service centre at 103 Walker St at close of business today.”

 

For more updates on COVID-19, visit health.qld.gov.au.

Townsville City Council venues to close

Townsville City Council has made the decision to close its CityLibraries, Perc Tucker Regional Gallery, community centres and venues and its customer service centre walk-in service at 103 Walker Street as it works to help slow the spread of the novel coronavirus (COVID-19). Council CEO Mike Chiodo said the decision comes following the Federal Government’s new social distancing restrictions that have closed pubs, clubs, gyms, sporting venues, entertainment venues, restaurants and places of worship.

“The stage one restrictions on social gatherings implemented by the Federal Government include a restriction on facilities. For Council, this includes three library branches, Perc Tucker Regional Gallery, our sports and community venues, including Townsville Civic Theatre,” he said. “These closures will be in effect from 6pm Wednesday. “CityLibraries has an extensive online library service, including e-books, audio books and movies, which can be accessed through the Council website and we are preparing to livestream events like exhibition openings and library story time to continue to engage with the community.

“This is an important social distancing measure to keep people safe and will hopefully assist in slowing the spread of COVID-19 in our community.” Mr Chiodo said closing this number of Council venues was unprecedented, but it was the right decision for Townsville. “We will also be restricting Council’s Customer Service Centre to being over-the-phone only. Planning applications will still be able to be submitted digitally, and council is preparing a physical drop off point for applications and survey plans to be physically submitted at boxes at Council,” he said.

“We want to do our part to keep our staff and community safe and slow the spread of COVID-19, and this includes following the new laws from the Federal Government. “The advice from the Federal Government is that these measures could be in place for up to six months. “Our staff members who work in these areas will continue with their jobs and in other areas of Council. Council is committed to supporting its staff through this period.”

For more updates on COVID-19, visit health.qld.gov.au.

How to use CityLibraries during the shutdown

  • Loan periods extended to 80 days
  • Loan limit increased to 80 books and 30 DVDs
  • Livestreaming of events to be announced at townsville.qld.gov.au
  • MiTownsville WiFi will still be available
  • Free eBooks, eAudiobooks, magazines, movies and study assistance will be available via townsville.qld.gov.au