For some of your clients, the current economic conditions mean they have reduced asset values and this may impact their spending habits, it may make them eligible for social security benefits.
For their families, they may be considering a greater impact to their incomes and spending due to changes in employment.
Generally, just being aware of a few tricks in cashflow can help change a client’s spending and stress levels when managed early. Below are a few quick and simple ideas to raise with your clients and their family:
1. Knowing the net
Understanding what is actually coming into client’s bank after tax generally assists with allocating money where it is needed. Most clients will know how much they spend on necessities such as groceries and petrol each week. Knowing what is left over for annual bills and discretionary items can help change spending habits. A great way to track spending further is by using the one bank account and debit card where possible. Most banks have expense tracking tools to assist clients understand how much and on what they spending their income on.
2. Prioritise debts
Listing out client’s debts from highest interest rate to lowest, including family debts and overdrawn bank accounts can be a real eye opener and help to prioritise repayment strategies and plan for the end of interest free periods. This can be confronting for some and may highlight the need for further debt assistance. The National Debt Hotline is a good place for clients to seek free advice.
Importantly, debt management is crucial to managing finances and getting on top of expenses, not to mention a relief when the debt snow ball effect is reduced and under control.
3. Consider Centrelink assistance
On top of benefits like Family Tax Benefit, JobSeekers Allowance, Child Care Subsidy, Age Pension and many more, Centrelink offer other options for those in need of cashflow support. Centrepay is a free and voluntary service to assist with the payment and management of bills and expenses including registered financial advisers. Basically, Centrelink can pay a clients expenses prior to receiving their Centrelink pension or allowance each fortnight.
Some of these may seem like simple thoughts however, with additional stress and changes to situations, they can be overlooked for by some clients. Advisers often add value by assisting clients take the next step to securing their financial wellbeing.
To get your clients on the correct payment efficiently, AdviceLink can assist with your clients claims and updates. We also assist with negotiations in money owed to Centrelink as a clients nominee.
Additional Client Resources