• New Wave Accountants

Effective Tips to Cope with a Decline In Income - Part 1

Let’s face it, things won’t always be great. While managing your finances may be easy during times where you are thriving, things become trickier when you experience dips and a decline in income. However, it isn’t impossible to effectively deal with situations like this. To help you out, we thought it would be useful to put together a brief article discussing how to best deal with this. If this is something that you’re interested in, read on for four effective tips to cope with a decline in income.


Plan Around a New Budget


If your income has fallen, the first thing you need to do is analyze your budget. First, put together a new budget that includes your essential expenses like mortgage or rent payments, bills, and groceries. Assess which expenses you can do without until your income rises again.


Set Up Payment Plans


When your source of income is cut off, it can be difficult to adjust to your new lifestyle. Now, this is easier said than done as setting up payment plans can be tricky. Luckily, you don’t have to do this by yourself. If you’re not sure how to go about doing this, and you’re not sure you can meet your regular payments, speak to your financial consultant about setting up a payment plan. The key is to communicate with your financial consultant actively and often, so they can assess your situation and help make things easier on you.


Look Into Support That You May Be Entitled To


The government has announced a range of support for people who have lost their source of income or who have experienced a significant decline in income. Check what support you may be eligible to receive and organise the details you need to apply. If you have lost your income due to illness or injury, check with your insurance provider to determine what support you can make a claim for. Insurance companies generally institute conditions regarding minimum earnings or other stipulations before they will cover an individual, so it’s important to double-check that you are eligible for the policies that you have.


Consult With Financial Professionals


It can be difficult to deal with this situation, but this is also an opportune time to course-correct your finances. Take this opportunity to speak with your financial professionals and reset your financial plan for the future. These conversations can help you manage your finances now and into the future.


Conclusion


We hope this article proves to be useful when it comes to helping you deal with the difficulties that you are currently facing. While things may seem rather daunting, it’s not something you can’t get through with sufficient planning and preparation. Be sure to keep all of these tips in mind so that you can best navigate your finances and deal with your decline in income effectively.


At New Wave Accounting, we take care of all your accounting and bookkeeping needs from start to finish. We have worked with over 600 small businesses across various industries. Our Gold Coast accountants have been able to get a thorough understanding of each sector and provide customised solutions for our customers as a result. If you're searching for a business accountant, we're here to help! Get in touch with us today and let us assist you in scaling and growing your company!



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