Increasing Financial Resilience
General Information only.
Panthera Finance is not a financial adviser. The information contained below is general in nature and is not personal financial advice. Therefore, you should consider seeking independent financial advice to determine if the information below is appropriate for your personal circumstances.
Increasing Financial Resilience
The term financial resilience is thrown around a lot, but what does it mean?
Financial Resilience is the ability for an individual to have access to finance during times of financial hardship. This access to funds is built up over time during using various saving strategies and techniques. The value of the funds will differ between individuals, but the key is that the person has access to ‘emergency funds’, that will allow them to keep out of financial hardship conditions.
There are many things that people can do which could potentially assist with becoming more financially resilient. One option that could be considered is starting an emergency fund. It doesn’t have to start off with a lot, but. If you start, then you can gradually add to this fund over time.
The purpose of this fund is to use it for unexpected expenses or income changes. Avoid the temptation to dip into this money for non-emergency purposes. Let it grow and you’ll soon have money to pay for the unexpected.
To help create this fund, you need a budget (or a financial plan).
It will take some time and dedication to get started but starting could potentially assist you in achieving financial resilience. Ideally, you want to clear your outstanding bills. Most people dread paying their bills, but it doesn’t have to be a stressful experience. There are a few simple things you can do to make sure your bills are paid on time, and you can even save a little money in the process.
Paying Bills on Time
One of the best ways to ensure you pay your bills on time is to set up automatic payments. This way, you won’t have to remember to make a payment each month, and you can be sure that your bill will be paid on time. You can set up automatic payments through your bank or most bill-paying websites.
Another way to make sure your bills are paid on time is to set up reminders. You can set up reminders through your phone, computer, or even a simple notebook. Write down when each bill is due and make a note to yourself to pay it a few days before it’s due. This will help you avoid late fees
Don’t ignore your bills
When you don’t pay your bills on time, they may eventually transition into debts. Debt is one of the most common financial problem Australians currently face. So don’t feel alone, you aren’t.
Reducing Your Debt
There are strategies you can consider implementing which could assist with reducing your debt. One way once again is to create a budget and stick to it. This may help you to see where your money is going and where you can cut back on expenses.
Another way to reduce your debt is to seek independent advice from a financial counsellor.
So, you now have some strategies to use to help you control your bills and debts. Congratulations, you have taken the first step in becoming financially resilient.
Once you have your bills and debts under control, you can now start putting some funds (no matter how big or small) into a new bank account.
When should I use my “resilient fund”
Well, this is up to the individual and their financial circumstance. If you are unsure seek independent advice.
When should I consider using my resilient fund:
- Use for essentials – by this, we mean, food, shelter, warmth.
- Are you behind on your rent and about to be evicted? Use your fund to pay your rent, so you can keep a roof over your head.
- Is your power bill about to turn into a debt, call your power provider and explain your situation and offer them an amount as to keep your power on.
- School items for your children – books, clothing, excursions.
- Paying unexpected bills. Ideally, call the company and explain to them your circumstance (they don’t judge you). Ask for a payment extension and/or make a small payment as to show them that you are committed in paying it.
Now saying this, everyone’s circumstances (living and financial) are different, the above is a general overview. As mentioned, you should seek independent advice if you need assistance with managing your personal finances.
Key thing to Remember
The key thing to acknowledge and one that is difficult to do, but to truly have financial resilience, you need to live within your means. If you require assistance in creating a budget that suits your circumstances, Financial Counselling Australia are the peak industry body in Australia.
If you a Panthera Finance customer and are currently facing financial hardship, don’t be embarrassed about it and call us and explain your circumstances. Our professionally trained staff do not negatively judge people’s financial circumstances. We much prefer to work with you and around your circumstances. Alternatively, the National Debt Helpline is available to provide you with independent assistance – visit ndh.org.au or call 1800 007 007.