Imagine facing sudden redundancy, an unexpected large bill, or significant whānau event. Maybe you’re currently experiencing one of these or have experience from a previous situation.
Often we can be vigilant with savings or expenses, making informed decisions, and setting goals – but still be impacted by sudden and unexpected financial setbacks. It was one of the key discussion points during our wāhine webinar, as part of Sorted Money Month with Financial Mentor Cat Rikihana.
Cat explained from her experience that; “We’ve got some tragic, but amazing stories of clients that have come through the financial mentoring service who just like all of us, you know, we’re just going about life. And then something happens and it’s the total unexpected things; it could be a health issue that comes up, a redundancy, something that takes you away from home or whānau.”
Cat shared kōrero around what you can do if you find yourself in sudden and overwhelming financial difficulty. Here are some of her top tips.
- Get in touch with a financial mentor, or budgeting service.
- Get in touch with your providers, especially your bank to discuss your situation. Banks can offer short term repayment breaks or have hardship policies to deal with these situations.
- Identify repayments you may be able to consolidate.
Even though you may not be anticipating a sudden expense or loss of income, this isn’t a reason to not prepare. There are ways you can get prepared and these include:
- Have savings goals – even saving small amounts is still beneficial and will help if you are faced with some hardship.
- Set yourself a goal (start with $500, or $1,000 over a number of weeks or months)
- Put it into context, how much would you need to save for a month off work or to cover your car insurance excess?
- Don’t compare your situation with others, everyone has different needs and goals
One of the most important takeaways is to not be whakamā (shy) about discussing pūtea. Even when your waka is sailing smoothly, make sure you have a plan, a support team and mentors around you. When you hit a rough season (it can happen to anyone), you’re allowed to ask for help!
There are a number of incredible organisations and mentor programs designed to help you get back on your feet. Make sure you know who these people are before you hit rough water, or if you’re the whānau member everyone shares their money kōrero with, it may be information that you have the privilege of passing on!
The information contained in this document is intended for general guidance and information only and is not personalised to you. It does not take into account your particular financial situation or goals.
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