Highlights
- The Australian Government is extending the JobKeeper payment up to 28 March 2021
- JobKeeper payment will also be reduced to a further $1,000 per fortnight
- The pandemic is a glimpse of what our retirement would look like without savings says finance strategist
2020 has been a difficult year for many Australians who loss their jobs due to the COVID-19 pandemic.
While the federal government’s $130 billion JobKeeper scheme will help keep Australians in jobs for now, finance strategist Jerry O’ Brien shares some tips on how Australians can maximise their money especially in these very volatile times.
How to maximise your money this pandemic
Know your minimum living expenses number
Mr O' Brien shares it's important to know how much money you spend on your non-negotiable necessities like rent, mortgage, utility bills and groceries.
"You should know how much you really need and this is your minimum living expenses. Make a very simple list of your non-negotiables either your rent or mortgage, utility bills and other necessities. For now, forget about presents or holiday budgets. Minimise unnecessary spending.
Once you have made a list or know your minimum living expenses number, it's time to apply tip number two.
Double down on your emergency funds
The pandemic has brought uncertainties to the lives of people especially when it comes to job security. Mr O' Brien shares it's important to save up for an emergency fund.
"We won’t know if we have a job in three months time or in the few weeks so we need an emergency fund. Save for a minimum of six months so you have funds to support for your monthly expenses. A cash buffer can help you in the meantime while you are looking for a job."
"I classify emergency fund as kung mawalan ka man ng work, kaya mong dumukot dito for you to live at makahanap ka pa ng next work mo."
Saving money this pandemic is important. Source: Getty Images
Upskill yourself
Now that we are staying home more than ever, Mr O' Brien shares it's never too late to learn a new skill and generate income from it.
"One of my major tips is to upskill yourself. There are so many courses online to teach you a new skill. Make sure that the skill can help you generate another source of income later on."
The importance of saving
Mr O' Brien believes the pandemic is a glimpse of what our retirement would look like without money savings.
"This is a glimpse of what our situation will be if we reach retirement without multiple income stream and if we don’t have emergency funds set up.
"If you do not prepare for your retirement, nakaasa tayo sa JobKeeper at government support. This is good but will not last for a long time."
