Surviving hard times

Steve Cray came to The Salvation Army when hard times hit and he struggled to provide for his family of four. He shares tips on saving money and saving stress.

In 2007, I was diagnosed with non-Hodgkin’s lymphoma. Then, in 2009, I was made redundant from a well-paying job. Too old to get another job, I was forced to go on the benefit. With a family of four, it was a shock to have to live on this new small income. This was a time of real turmoil, and the beloved team at The Salvation Army helped me out with food parcels.

Based on what I learnt during that time, here are my tips for living on a small budget:

Look at the map:

The first step to getting to a better financial place is understanding where you are now. I have been close to bankruptcy twice and understand how bad it can be—some prefer not looking at the bank statement for fear of facing the problem. It can be hard to face up to, but it’s like looking at a map—if you don’t know where you are, it’s impossible to work out where you want to get to. The Salvation Army has budget advisors who can help you work out where you want to go.

Face up to debt:

By running away from debt, you’ll only get further into it. Instead, go to the companies you owe money to and tell them your plan to pay off the debt completely. This may save you a bad credit rating—but make sure you stick to the plan!

Save on power:

Make sure all lights are turned off that don’t need to be on, and turn off all power points at the wall, especially at night—many appliances use power while on standby. If you have a heat pump, check filters—dirty filters can double the usage costs. Make sure your water heater is not running too hot. As a general rule, if the water is too hot to hold your hand under, then it’s using too much power.

Save on food:

Don’t shop at the dairy or petrol station, as they generally put around 35 percent more of a mark-up on their goods than supermarkets, so buyer beware! Check out your butcher—it can be as cheap to buy a whole topside (about eight kilos of solid meat) and get them to mince and package it, as to buy 500 grams of premium mince at the supermarket.

Find small income sources:

Every little bit helps, maybe look at selling items you don’t need any more on Trade Me. As a builder, I have made things to sell, and this has helped me.  

Finally, some basic rules to live by:

• If you can’t afford it, don’t buy it.
• If you are in debt and still buying alcohol and cigarettes you are not as serious about getting out of debt as you should be.
• Always shop with a list of what you need and stick to it.
• Check out the Family Store, which can be a gold mine for people on a restricted income.
• If you have a credit card, make it your first priority to pay this off, and then cut it up.