Quick Cash Flow Help In Australia

When you have a limited income, it can be hard to think about saving money for your future or even get out of debt. After all, many low income earners live pay to pay with nothing left over.
Aussies on low incomes are amongst the best at budgeting, as they have to figure out ways to stretch their dollars to keep their households running.

What more can be done if your budget is as lean as it possibly can be?

As difficult as it might seem, there are ways to improve your situation, getting out of debt and saving.

Here are a few ways you can start reducing  your costs each month.

Capitalise on Benefits
One of the quickest ways to reduce your monthly expenses is to make sure you are receiving all the potential benefits you can based on your situation. Changes to government benefits happen often so it’s good to check up and review what’s available. This can be done quickly through the Centrelink Calculator.

 
Take a Look at Your Housing Costs
It can be difficult to save money when you are spending a large amount of your income on your housing costs. The best thing you can do is to try to keep your housing costs at around 25% of your monthly pay or less. While this might not always be feasible (especially if you live in Sydney), there are a handful of things you can do.

Renters can

• Look for government housing subsidies
• Negotiate with the property owners, especially if you have been there for a long time (possibly swap labor, improving the premises in return for lower rent).
• Move to a cheaper location (This can be tough to do, but may well be worth it)
• Reduce your tax if you have your own business (claiming office space in the home)
• Review different utility and entertainment expenses…cancelling or reducing plans. Don’t forget to look at service bundles if you haven’t already.

Owners can

• Refinance to a lower rate if possible
• Sell and move to another location (not always practical)
• Rent out portions of the home (spare room, garage, basement, etc)
• Rent out the home and rent a smaller cheaper place for yourself
• Review all bills as mentioned in the Renters section

Plan Shopping Trips Ahead of Time
A recent segment on A Current Affair, had financial experts see if they could live on dole payments – they couldn’t but were close. One of the key areas where they did save was that of groceries and this was largely in part to being organised with a list…and sticking to it. Avoid spending money for the sake of spending money and getting enticed by certain sale items. This is where you end up losing a lot of your income without even realising it. The best way that you can control your spending when working with a limited budget is to plan for your shopping trips in advance. By writing down your budget and sticking with it, you can make sure you control the amount of money you are going to spend each month. You might be surprised at how much money you were wasting each month on your impromptu spending.

Consider Going Used
One of the best ways you can save money is to buy used items. Instead of having to go buy a brand new television in a sealed box, consider going with a floor model or open-box item. Not only can this get you the same television you want, but you are going to pay a fraction of the cost in the process. You can also find an assortment of items that people are giving away online or by simply driving around the area.

Vehicles, baby items, household goods can all be purchased second hand, saving you hundreds if not thousands. Often times there is a misconception that used stuff is of poor quality – that is so far from the truth.

Invest in a Programmable Thermostat
Utility bills are some of the biggest budget eaters beyond rent/mortgage and food. You can save money on your heating and cooling bills with a programmable thermostat. You can pick one of these units up for less than $50. The savings alone can end up cutting your energy bills by as much as 10-15% every month. The savings can add up substantially over the course of the year. A programmable thermostat allows you to keep your home cooler during the day when you are away. It then turns your heat up right before you arrive home to make sure your home is at the perfect temperature.

Better yet, get these items for free from government utility programs or from the utility companies themselves. Simply call up and ask for low income subsidies or assistance programs.

 
Staying Out of Debt
All financial experts will speak about the importance of an emergency fund for unexpected expenses. Many low income earners are unable to establish these types of savings as they just don’t have the money to put away.

If you don’t have an emergency fund and a situation that requires money pops up, knowing where to get assistance can make a big difference in the debt you take on and the cost of interest and fee repayments. Many Australians in this situation may turn to short-term lenders or payday loans when there are better options.

Below are non-profits and government programs to provide cash for emergencies at a low cost.

Centrelink Money – Review different benefits, grants, loans and advances for those collecting Centrelink benefits.
Advanced Payments – Why take out a loan when you can get a free advance. Take care of immediate cash needs with a Centrelink Advance Payment.
Interest Free Loans – Two great loan options come through a partnership between the NAB and Good Shepard. They provide very low or no interest loans up to $3000 and have saving programs available to help with establishing an emergency fund.

By doing the things above, you can begin saving money and improve your monthly cash flow situations. For even more tips and information on debt, money management, emergency help, benefits, freebies and more, visit our articles section.