Tena Koutou Katoa
Financial freedom can mean many things to us individually. I speak from my journey today and in the hope to encourage others.
As I watched the budget 2020 being delivered by Grant Robertson the Finance minister, please do check it out for your own views and opinions, to partake in your responsibility within your home, cause that is where it all begins. The decisions made yesterday are going to affect the future of my children and their children. My view DEBT is not always the answer, but is always the answer. Wisdom must apply to good and bad debt.
I thought I would share how we came out of financial hardship from 2012 to 2016, so here is a little of our story and actions we took that helped us be in the position we are in now. Hope it helps YOU.
The dynamics of our family were that we had 2 children living with us and 3 with their mum, visiting every 2nd weekend. My mum had shares in our family home at the time and her business was being run from home creating $800 monthly power bills. We had no income, a failed business and financial pressure from the bank daily, creditors ringing daily, no food, power cut off, phone cut off, trouble feeding our family and unsure who to turn to and who to trust. Relationships were breaking down around us, with fear, pride and depression controlling us in an extremely emotional and vulnerable state. I was on antidepressants for months which helped ease the pressure but was not ideal.
This is how we managed to come out of this season to where we are now.
1. Scotty and I unified, supported and encouraged one another.
2. We Revised our budget for our business and personal weekly, together. We started cutting back cutting out and cutting costs. We had a priority list. 1. Keep family warm, 2. Feed the family, 3. Slowly work out what is the priority debt and chip away at it slowly if we can. 4. Communicate with our creditors and make no promises, just share your plan.
3. We applied for accommodation supplement at winz so we could feed the kids.
4. We spoke to the bank, by then was 2 months behind reaching 8 months
5. Scotty applied for 21 jobs, to finally he get a break with state Insurance. $49k Yahoo.
4. We had support from our family and church members who helped with giving money that was able to pay arrears of priority debt and feed the kids with descent food.
5. We had family move into our home that helped clear the mortgage arrears and get us ahead so we had a roof over our head.
6. After 2015 when I was discharged, we sold the family home that was in a trust and cleared all our debt.
7. We found a rental with 30 other family members applying. (That is when rental market went crazy). I had to explain to the agent that I was not a liability as my credit was NOW CRAP.
8. We had a church member help by lending us the bond of $2500 to get into the rental and friends helped move us for free
9. We started our new beginning debt free and built new dreams.
We did not borrow any money or get into any debt, we cleared and down sized, until 2018 when we built our new home and purchased another investment property in 2019. I reeducated myself and got a postgraduate diploma in professional accounting, only to learn more about myself being dyslexic and dysgraphic, which helped me understand why certain things did not make sense.
I really encourage you to not react from fear and emotion and get the help you need if you are having trouble sleeping at night. My journey will not be yours.
Set up a budget FREE Course https://www.capnz.org/get-help/cap-money-course OR
Pay a small fee and have a money trainer support your journey https://moneytrainer.co.nz.
Mental healthhttps://depression.org.nz OR https://www.mentalhealth.org.nz See a doctor or even better pray. If you have any friends or family needing help with business finances, (as this impacts personal finances), please have them book aFREE APPOINTMENT https://calendly.com/krea-2020/discoverycall to advise on there next step to recovery by Building Stronger Business Together.I am Leah Donaldson an accountant/business advisor passionate to help you recover from being LOCKDOWN to UNLOCKED. www.krea.co.nz
Pray in sharing that you gain hope and comfort that your situation does not define you and your journey has just began. IT'S A NEW SEASON OF OPPORTUNITY.This is our family and our values are faith, truth, respect, love, honour and fun. We did it and you can tooooooo.
Blessings Love Leah