The living standards in Australia are incredibly high and there is a remarkable difference between the rich and the poor. However, because of the current economic condition people both wealthy and poor have had to change the way they live their lives. The middle class has been hit the hardest and have essentially become lower middle class or poor. In order to right these wrongs many aspects of the country’s finances will have to change, but here are steps you can personally take to help your situation.
Downsize Your Vehicle
Going to the gas station for many consumers immediately makes them anxious. Some people have had to make decisions between buying food and fuelling their cars. If you have a car that is not fuel efficient; it may be time for a change. One of the biggest expenditures in our personal finances has been gas prices. Your way to overcome this problem is by simply trading your car in for one that is better on gas. The Hyundai I30 or the Toyota Camry are two cars that can save you money on gas. Trade that car and stop the bleeding at the pump.
One of the scariest issues during a recession is major losses in investments. Many people feel they are helpless to do anything about their stock market dilemmas, not true. Now is the best time to look at diversifying your investments. This one step can help spread the risk that comes with investing in this environment. Sit down with your financial advisor and discuss steps you can take to protect your assets today.
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Protect Your Job
Over 5% of the population in Australia is out of work. Due to the current economic meltdown, many others are facing the possibility of job loss. If you have a job, protect it. Make sure that you get to work on time and make yourself invaluable to your organization by going the extra mile. Don’t be afraid to ask for additional responsibilities. These moves can make your boss overlook you when it is time to lay people off. By putting your best foot forward at all times; you may just save your job.
No More Borrowing
Now is the time to keep your debt to a minimum. Unless there is a serious emergency; there should be no more borrowing. As we have all seen, this is the best time to cut back and save as much as possible. Taking out personal loans or applying for additional credit cards will only go toward increasing your liabilities. Should you lose your job, this could become another bill you cannot afford to pay. Pay for things you need with cash and begin paying down your debts. This is the only way to make your life recession proof.
If you have found yourself in dire need of funds there are specialty lenders who provide debt consolidation help in addition to Centrelink loans assistance if you are in need of emergency funds.
The economy has made life difficult for millions of Australians. During this turn of events there are a few things you should remember. Downsize your car, diversify your investments, protect your job, and no more borrowing. This can help you can manage the meltdown with dignity.