The implications of the Covid-19 virus and the current restrictions on economic activities have certainly had a major impact and we see it in almost every sector of our society.
For those facing personal or business financial challenges at this time, the Doxa Deo Church in Brooklyn, Pretoria, South Africa is available for a confidential discussion to empower you with sound financial principles that will enable you to make decisions during this difficult time.
Personal financial challenges – a few points to help one cope
1 Budget
To get to a destination you need directions (a map). The start to determining where you are financially starts with a budget. How do you start addressing your financial position if you do not know where your money is going?
A practical tip to draw up a budget is to take your last 3 months bank statements and to allocate the expenses for each month on a piece of paper or an excel spreadsheet. Do not forget to include your credit card in this exercise.
There are free Apps like 22Seven which you can use to help you set up a budget. https://www.22seven.com/
2 Needs versus Wants
This distinction is not as clear-cut as you may think. A place to live, clothes to wear, food to eat are the easy parts – the necessities. Now it becomes more difficult. Medical Aid, Life Insurance, Short-term Insurance, saving for retirement etc. When it comes to putting food on the table, these important expenses take a back seat.
Luxuries fall squarely in the ‘Wants’ category, even though we often convince ourselves otherwise.
3 Assess expenses
It’s necessary to take a hard and honest look at your monthly expenses.
Before cancelling the important expenses like medical aid, life insurance and short-term insurance consider the following: convert to a lower, cheaper medical aid plan, reduce life cover on your insurance premiums and/or remove some of the nice-to-have benefits, obtain alternative quotes for your short-term insurance.
Other considerations can include:
- Cancelling DSTV subscriptions
- Move to a lower cellphone plan or pay-as-you-go
- Do bulk grocery shopping, once monthly, or every 2 weeks instead of weekly or every few days
- Installing a timer on your geyser
- Installing energy saving globes
- Reduce a 5-day helper to twice or once a week
- Sell one of the cars or both and replace with a fuel- and cost-efficient alternative
- Consider downsizing your house
4 List assets and liabilities (debts and accounts)
Make a list of all you own with reasonable values allocated to the various items. Likewise make a list of everything you owe. Refer to your latest statements when drawing up this list. Do not forget to include the interest rate for each debt you owe.
Once you have listed all you own, sit down and go through this list and ask yourself the question – do I really need this? (Your spouse should not be on either list 😊). Mark all the items you do not need. It helps being brutally honest when doing this exercise. This list should only include your own things and not those of your spouse.
5 Sell unused, unnecessary items
Consider selling items you no longer need or use. There are various applications (APPS) or platforms where you can list these items eg. OLX, Gumtree, Facebook etc. With the current lockdown situation, a garage sale may not work.
6 Financing
If you have a consistent loss in income and have a bond, contact your bank immediately and ask for reduced monthly payments or a payment holiday. Check your insurance cover on your bond.
So too if you have vehicle financing.
7 Lease
If you have a consistent loss in income, contact your landlord if you are leasing your house or apartment. Ask for an extension, reduced lease or give notice so you can find a cheaper lease.
8 Approach other creditors
Approach your creditors explaining that you cannot pay and try to arrange alternative payment terms. Continue making payments even if these payments are lower than what should be paid. Keep communicating with your creditors keeping them updated on your situation.
9 Insurance
If you have a loss of income policy, contact your broker to assist you in the claim.
10 Do not go hungry
Doxa Deo Faerie Glen have a HOPE (Help Our People Eat) project that provides food for families going through a tough time. For more information contact zabeth.debeer@doxa.deo.org Please take the liberty to contact Zabeth in case you need assistance.
11 Unemployment Insurance Fund (UIF)
If you have been retrenched, apply to the Unemployment Insurance fund for payouts while unemployed (assuming you were registered as an employee at the UIF and contributed to the fund while you were employed).
12 Connect
If you have been retrenched during this time of crisis it is important that you find alternative employment as soon as possible. Chances are you may need emotional support too, as losing a job is usually very stressful. Join ‘KeyConnection’, Doxa Deo’s ministry for people between jobs at keyconnection@doxadeo.org
13 Reach out
What is important when you are going through a financial crisis is that you do not become isolated which is often the go-to reaction when we experience shame and disappointment. Connect with friends and support at a home group, men’s group or women’s group.
C.S. Lewis: Friendship is born at that moment when one person says to another: What! You Too? I thought I was the only one.
14 Up-skill
Consider up-skilling or learning a new skill during the time of lockdown. Universities like Stanford and Harvard are offering free on-line courses. Other training websites like Udemy are offering training courses at vastly reduced rates.
15 Take responsibility
What is critical during a financially stressful time is that you take ownership of the problem and ACT – do something. Blaming an former employer for your situation may make you feel better for a short while but does not change or improve your situation. Get help!
16 Seed and bread
2 Corinthians 9:6-11
6 The point is this: whoever sows sparingly will also reap sparingly, and whoever sows bountifully will also reap bountifully.
8 And God is able to make all grace abound to you, so that having all sufficiency in all things at all times, you may abound in every good work.
10 He who supplies seed to the sower and bread for food will supply and multiply your seed for sowing and increase the harvest of your righteousness.
11 You will be enriched in every way to be generous in every way, which through us will produce thanksgiving to God.
Don’t eat your seed. Ask God to help you discern between seed and bread and trust God for the harvest.
To address challenges with your business cash flow, please click on the visual below:
To read more about the projects the Brooklyn Doxa Deo Church community is involved in during this difficult time, please click here:
COVID-19 articles sourced from various authors.
