BUDGETING TIPS
This is the hardest thing you may ever have to do. In order to make your money work for you it is important that you know exactly where your money is going. Your accommodation costs can easily take up 2/3rds of your income or benefit and this leaves what can seem like a very small figure indeed!
But take heart, WINZ are able to help in some cases with, for example training fees, and you should apply to them for info on those schemes. They also have a "loan" service for essential items such as fridges. You will pay these debts back in small amounts deducted directly from your benefit. See your caseworker before you buy an item though, as you will need to get a quote and have it approved prior to your purchase.
But take heart, WINZ are able to help in some cases with, for example training fees, and you should apply to them for info on those schemes. They also have a "loan" service for essential items such as fridges. You will pay these debts back in small amounts deducted directly from your benefit. See your caseworker before you buy an item though, as you will need to get a quote and have it approved prior to your purchase.
WHAT TO DO?
"THE JAR APPROACH" - Take your money out in cash on payday everyweek. Divide it into portions in labelled jars. For example, label one jar "RENT" and every week put $100 into it, and one jar "FOOD" and put $100 into it, and one jar "POWER" and put $40 into it. This system is an oldy but a goody. Beware of taking any money out of any of the jars, it is a big no-no. If you can't leave the money there, do not try this method!
"THE DIRECT DEBIT APPROACH" - Use internet banking to set up a direct debit for each and every expected account and put a standard amount through each week. It is exactly the same as the Jar Approach, but modernised. In effect you may be pre-paying some items, but by the end of the month you should have put enough in to cover your bills.
"THE NOTEBOOK APPROACH" - using a 30c notebook. Use one page per week. Fill in each page with the money you have coming in for the week at the top. Do not fill out your expenses in advance as you never know what may happen. Fill in direct debits or automatic payments. As you spend money over the week add the amount into your expenses column. Add it up every day and keep it POSITIVE...Do not cheat, fill your book in religiously. You will soon see where your money is going and where you can cut down.
"THE CASH ONLY APPROACH" - on payday go to the bank and take out your payment in cash, to the cent (or as close as you can). Put it in your wallet. Make all your payments out of this cash. Once you have finished your cash you cannot buy anything else! This approach really makes you think, "do I need to make this purchase?".
"THE DIRECT DEBIT APPROACH" - Use internet banking to set up a direct debit for each and every expected account and put a standard amount through each week. It is exactly the same as the Jar Approach, but modernised. In effect you may be pre-paying some items, but by the end of the month you should have put enough in to cover your bills.
"THE NOTEBOOK APPROACH" - using a 30c notebook. Use one page per week. Fill in each page with the money you have coming in for the week at the top. Do not fill out your expenses in advance as you never know what may happen. Fill in direct debits or automatic payments. As you spend money over the week add the amount into your expenses column. Add it up every day and keep it POSITIVE...Do not cheat, fill your book in religiously. You will soon see where your money is going and where you can cut down.
"THE CASH ONLY APPROACH" - on payday go to the bank and take out your payment in cash, to the cent (or as close as you can). Put it in your wallet. Make all your payments out of this cash. Once you have finished your cash you cannot buy anything else! This approach really makes you think, "do I need to make this purchase?".
TIPS
- Use cheques and EFTPOS sparingly unless they are free under your bank account, otherwise they incur a fee every time.
- Check that you do not incur a bank fee monthly by not meeting bank criteria.
- Beware of telephone banking services, which may charge you after a certain amount of calls.
- Beware of ATM machines, especially ones that are not your own banks. Get to know which ones are free for you and only use those.
- Avoid taking out Hire Purchase agreements as these are costly. Instead save up for what you need.
- Avoid credit in all its other forms too, such as store accounts and credit cards.
- Don't be afraid to ask for help from friends or relatives if necessary.
- SEEK MORE ADVICE if you are unable to cope - there are organisations there to help you
WORKING WITH WINZ
BUDGETING ADVICE
BUGET ADVISORY SERVICE AND HELPLINE:
03 366 3422 Christchurch area
03 313 3505 Rangiora, Hurrunui, Oxford, Cheviot.
03 327 9509 Kaiapoi, Woodend, Belfast
SORTED.ORG.NZ
There are some great websites out there that you can use to work out how to get your money to work for you.
You can make lots of changes to reduce the cost of services and food etc. You can also get "Back to Basics" and spend a bit of time thinking about how you and your household can do things in a cheaper way.
Sit down with members of your household, or your flatmates and work out a strategy for coping with the weekly/monthly bills.
A good place to start is Sorted.Org which has some fantastic calculators and links.
KINGDOM RESOURCES - this is a non profit organisation which assists people with financial matters. Kingdom Resources contact - 332 1700 or www.kingdomresources.org.nz
03 366 3422 Christchurch area
03 313 3505 Rangiora, Hurrunui, Oxford, Cheviot.
03 327 9509 Kaiapoi, Woodend, Belfast
SORTED.ORG.NZ
There are some great websites out there that you can use to work out how to get your money to work for you.
You can make lots of changes to reduce the cost of services and food etc. You can also get "Back to Basics" and spend a bit of time thinking about how you and your household can do things in a cheaper way.
Sit down with members of your household, or your flatmates and work out a strategy for coping with the weekly/monthly bills.
A good place to start is Sorted.Org which has some fantastic calculators and links.
KINGDOM RESOURCES - this is a non profit organisation which assists people with financial matters. Kingdom Resources contact - 332 1700 or www.kingdomresources.org.nz
GETTING MORE MONEY
Once you have squeezed your budget so that you know how much you have and where you can spend it, you could then look at somehow earning more money! If you have children you may qualify for 9hrs free childcare per week, and during those hours you could clean a friends house, take up a shift or two in a resthome, deliver leaflets, pack supermarket shelves, undertake in-home childcare, and more.