Since March my income has been reduced due to pandemic pressures the company has felt. I'm not sure how much pressure they've actually been under suspecting that it was a reason to simply pay me, and the rest of the staff, less.
The Australian government has been giving businesses $3,000 per employee, per month, to subsidise wages however many, many businesses have simply reduced their employee's income to that level, or close to it, almost negating the out of pocket expense of remuneration; Less money for the employee, more for the business.
This week we were all advised that as of the end of September all previous contracts and agreements will be reinstated. That means pay will go back to normal levels and I'll go back to a five day week. After six months of having a reduced income, and my wife's being reduced also, we are pretty pleased.
As with many in Australia, and around the world, Faith and I have had to make changes to account for a lesser income and, whilst we've had some reasonably lean times, we've made it work. It helps that we have a need over want ethos usually anyway, so don't waste too much money. It's been difficult, but we made it work.
So, my salary is going back to pre-pandemic levels and will mean a little extra in the pocket at the end of each month and we've been discussing what that means to us.
Today we did the sums and amended our spreadsheet which was cut down back in March in a bid to accommodate that drop in pay. The thing is though, that rather than simply go back to normal Faith and I have decided to continue in the same way we have over the last six months which will leave us with a surplus amount to save or invest. A nest egg of sorts.
Our logic behind the decision is that we both feel the world hasn't begun to feel the true financial effect of the pandemic situation and that tough times are on the way. I think it's a brave person who simply conducts life the same way they did in the pre-pandemic environment; There are so many moving parts to the global financial situation and it's not simply about one's income being at normal levels. It's a complicated beast. Having said that, there's plenty of people out there saying I haven't been effected...Ok...Let's see how that goes for them.
Faith and I rarely go without anything we need, and considering we tend to find enjoyment and satisfaction from things that are of a less material nature we feel that our lives are quite comfortable. We certainly believe we have the ability to continue our amended-life with the benefit being a growing nest egg of additional funds that we haven't had for six months. We'd rather have a little squirrelled away and not need it, then not have it when we really need it.
We're not sure what we'll do with the extra yet: Gold, silver, crypto, cash, pay down on a loan, superannuation. We're meeting with our accountant tomorrow to sign our tax returns so we'll have a chat and see what's available.
What we do know though is that having my income back to normal levels doesn't mean happy days are here again and it isn't a green light to spend. We're looking at it all objectively to put us in a position to do the best thing for us now and into the future. It's a time for responsibility we feel.
I hope y'all have been coping well throughout the pandemic, and that it all simply clears up and goes away...But that's unlikely and unrealistic. My hope is that you're all looking at your situation, planning ahead and mitigating risk where possible.
Design and create your ideal life, don't live it by default - Tomorrow isn't promised.
Be well
Discord: galenkp#9209
I took this image in a bush in my front yard. I was so eager to see these eggs hatch and was going to do a whole post on their journey...But they were eventually abandoned, I don't know why, and will never hatch. I'm a bit bummed out about it to be honest. Poor little things.
Saving is the way to go. We struggle here a bit because the missus and her doula business for humped by covid and it's just been one wage. We are surviving though and I am glad that we saved so much when times were good.
Oh and did you try sitting on the eggs? Worth a shot 😉
Yeah man, I mean I don't like to whinge too much (publicly) as there's so many who have struggled, and still are. It's been a challenge though and with Faith's mum's scenario it's likely for the next six months Faith will earn less as she'll be looking after her mum, not working. So, my pay reverting has come at a good time.
Saving is righteous for the very reason you mentioned! i'm glad you did it because the alternative is pretty bleak. This is what has prompted us also.
Now, those eggs...Yeah, I tried sitting on them...Originally there were 5...Anyway, my attempt was less than successful, but the omelette was pretty good! LOL
Hahaha, I'm chuckling at the omelette!!
Lol, gotta laugh in the face of adversity.
I think you both made a wise decision to not rush back to your pre-pandemic lives and instead save/invest. The world's economy is yet to recover and who knows how long it will take.
I lost my job during the pandemic, I'm simply using this period to try out new things while hunting for a new job.
I'm sorry you lost your job...You and so many others. There was a time I thought I might also, and to be honest it's still on the cards depending how things go. Such tough times.
I hope you find something new and get back on track soon. And thanks so much for commenting on my post, it is greatly appreciated.
Thank you...
The main thing I am trying to focus on with extra funds is to pay down debt as fast as possible, sure it would be nice to build more of a savings or invest more in whatever, but to me, the burden of debt is by far worse.
that being said we do try to save more than in ye old days. We just don't know what's around the corner and it's nice to have at least a small amount saved for emergency costs.
I agree completely about the debt thing, it's a noose around a person's neck and best removed. At least you're thinking about it and actively working toward getting rid of the debt. That's smart. We're doing the same with the view to have a better future.
That's a safe way to go.
I'd split it into two parts, one to reduce the loan and another to invest in some crypto. I would diversify in crypto. But just taking the decision to remain as you are and use the extra income as an investment or loan reduction is the best decision you can make. As I've grown older, I give less and less importance to material things. Health and family (including close friends) are the only things that matter.
Oh yeah, that's sort of what we were thinking, split the additional funds and go I'm two directions. We like the debt reduction thing because interest sucks and a bit of crypto here and there could turn into a lot later down the track. Crypto gains can also go towards debt reduction later too, so a big win. Potentially.
I think you are utterly correct. We haven't felt the financial impact yet, only the winds of change. Well except for the directly unemployed-they can feel it.
I expect ripples. Recovery and slide back. The transportation/tourism industry has a huge hole to dig out of. Housing could be ugly. Small business will fail at a larger rate, but how much larger? If people don't have the disposable income as they did previously what does that do to manufacturing?
So good on you. A needs over want mentality is going to pay dividends in the near and mid future.
You will note that I haven't said a peep about my Tortoise nest. Not a single hatch. Tortoise is a tough life...
Yep, so many industries and business segments will be affected it's almost too big a beast to see it all and how it may unfold. I think we're on the right path, time will tell. We're heading towards that debt free scenario I mentioned in another post, but that could be 12 months away...Until then we tighten belts and do what we do to squirrel a little money away.
No tortises huh? Nature is harsh.
Debt free is enormous. I hit a really bad patch a few years ago and I even had to 'defer' property taxes. I had to pay a penalty, but the roof over my head was not in danger of going away. Enormous.
I always knew that this could be the outcome for the Tortoise nest. She was really big, probably makes her over 100 years old and could be her clock still ticks but the biology has over come her. I did discover another nest that I'll keep track of for a while... I was off trail looking for Sam and there it was. Only my second.
Agreed man, I am so focused on debt free and kind of hope we can make it happen within 12 months. It's possible and I reckon with some hard work Faith and I can do it. We have her mum to care for first though. Going to be a bumpy road.
Tom the tortoise whisperer. Has a ring to it.
We thank the heavens that we are debt free for a long time now and I know that it's not easy, but so worth it, as the economic disaster resulting from the covid dilemma has already seen more that 1000 suicides here.
But even if we end up with nothing, suicide is never an option!
Yep, I think there's been a few here too...Not our style of course.
Great and I know that you guys will keep things going mate.
Blessings!
Major financial crisis incoming I do think😵 Glad you will be getting back to your normal pay again.
Yep, I agree mate...We're also glad the salary will go back to normal, and we're still working on the debt free thing too. Financial pain is on the way for many people. Whole countries.
Unfortunately I think you are correct financial pain coming for many all over the world. Hoping you can make good progress on moving towards being dept free👍
Glad to see they've seen the value in keeping you. Long term, excellent staff are very difficult to replace.
Yeah Matt, I think many employers have handled this situation poorly although I guess it's not something many have had much experience with. Some have done a great job though too. A tough situation all around but at least I have a job, I think many will not in the future.
Smart and prudent move. The future is definitely uncertain in these times, and absolutely a good opportunity to increase the nest egg. Add a little gold or silver, bitcoin or litecoin time.
Thanks mate, we try to make smart decisions and considering the reduced income has been working, of a fashion, we figured we might as well extend it and see if we can hide a bit away.
It will be a tough thing to do. Not the savings part, but the decision of where to place the savings. Almost all of them have risk, that is why it is a difficult choice.
Yes, it's a difficult decision on where to put the funds. The easy thing is on the mortgage, but at the same time crypto looks ok as it will grow the money, or have the potential to do so. We'll see how it goes. Either way I feel better sticking to the financial habits of the last six months, at least for a while, so we can stash some funds.
That is always good, after all a habit of spending less has already been formed, now is not the time to break the diet just because you lost a pound or two.
Nice analogy.
Best way to go about it as debt free means trap free mate.
The motto in the house that I grew up in was that if you want something and cannot buy it cash, then to save up until you have the cash.
Some say that it's a simple mindset, especially those that want sell us something on tick, but debt can present some serious problems in one's life.
It's one thing to live high on the hog "owning" many things that are laden with debts, only to find out in a storm that everything in fact belongs to the banks and the debt suppliers.
And a storm is currently on the horizon lol.
Great that you still have a fulltime job and full time pay, it is great bonus and I see that you know that.
Responsibility has never hurt anybody lol.
I'm looking forward to going back to full pay at the end of September. It will also mean I'll spend more time at the office rather than working from home so much. Not a bad thing in some aspects.
Credit spending became a thing in the 80's I think, around there anyway. I remember my parents never had debt, other than the house. It meant less stress.
These days people as accumulate debt because they have to have everything now and attatch their feeling of self-worth to those material things. Sad really.
Faith and I are not like that fortunately. But yeah, my back to normal pay will help a lot.
Your parents were wise and I know thankfully that they have influenced your thoughts about the important things in life my friend.
I know a guy that is now critically ill and he built his businesses gradually over the years by managing debt effectively and making it work for him. He put his whole life into his work. No time for a wife or a family, or any other external activities. A good guy that that looked after his mom and his siblings.
They have asked us for prayer, as he is having a growth removed from his brain tomorrow (Tuesday) and the specialist told his mom that he will not be the same after the op.
As a preventative measure he has signed a power of attorney over to a lady that is a long time employee and she will manage the finances and the operations for him.
Why I am sharing this is to show that at times we get our priorities wrong. Too much emphasis on income and not enough on a quality life.
You guys have it together and I think that in your posts you do reflect the possibility for others to gain from your example. Let's hope that some who are locked in the debt trap will read your stuff, as we are all here to help each other.
Blessings!
I remember thinking my parents didn't know anything in a dumb moment of being a kid; Of course they know a whole lot more than me. What's interesting is that years later I started to come to the realisation that my parents were more than that, they were people too. It made me a little embarrassed that I had questioned their logic when it came to parenting me on occasions, and also taken them to task over some of their own life decisions. Realistically they were as flawed as I am now, as any human being is, and were just doing the best they could do. Now they are both gone, I feel I have the need to tell them of my epiphany. Too little, too late.
Your story, the fellow having the noggin operation, touched me. I think I just dropped myself in his position and it hit me how momentous this event is, and how valuable life really is in the grand scheme of things.
Priorities...Yes, a good point. I feel Faith and I mostly have ours straight, mostly. Although of course, no one is perfect and so like most people we run off the rails. Fortunately we are the types to recognise it and address it.
I really hope the chap has a successful operation and the Power of Attorney is not needed.
Don't we all as kids my friend, but even worse, then we grow into teenagers and become young "know all's".
At times even secretly sneering at sound advice. Then real life starts and some of us say; "Oh, if only I had listened to my parents".
I know this is personal, but I will share. I only had a gran and a mom as parents, the gran was one of the wisest persons that I know to this day, but she died when I was 13. I digress, let's get back to the story.
When I came out of the army I met a young girl that walked past our house every day, at first we became friends and later developments resulted in us marrying. Me at 19 and her at 17.
My mom warned me repeatedly, as for some reason she didn't like the girl, but I justified by the fact that her parents didn't like me as I had long hair and a motorbike.
So I started in a construction apprenticeship and worked all over the country. We had one daughter and another child on the way. But there was a secret going on that I didn't know about.
For some reason that I forget I went home 2 days earlier than my normal fortnight weekend visits and here I found she and her ex boyfriend had gone on a fishing camping trip.
If only I had listened to my mom!
To pay my dues I stayed in a loveless marriage for 18 years, as I didn't want my children to grow up without a father like I had to and then it ended. They had finished school and started working and it was time for me to go.
When I buried my mom, I apologized to her.
They put the guy into a coma today and it's not a growth, but cancer on the left frontal lobe of his brain.
The doctor warned that they might not get it all out and if not then he will be enrolled for a chemo series.
Apparently he will not be able to do anything for the next 5 months.
What a stinker.
Show me someone that has never ran off the rails mate, we all have derailments from time to time, but it is the corrections that matter lol.
Cheers and thaks!
That's a personal story you share but one that offers a lot of value, and lessons. It's funny how life works out but it's just life I guess and all we can do is the best we can do.
What a shame for your mate, cancer. I hope it works out for him and he handles the chemo process as best he can.
Thank you Galen.
That chemo process is an ugly bugger and we have already three time been closely involved with it.
Two cases were terminal and thankfully one case survived after a stem cell transplant.
Hair falling out, severe nausea, weakness and a lot of other complications with that chemo stuff.
My friend brought his mother down, as he is only allowed one visitor per day and they are staying here for two weeks to take his mother to visit him every day.
So, let's see how it goes.
I despise the quarantine but I have nothing to complain about too much. Others have been hit worse. Hold in there.
Yes quarantine has been difficult for so many people. We've been fortunate here as lockdown hasn't been too strict at all. Still, the whole situation has been pretty annoying.
Thanks for commenting, it's much appreciated.
Me and hubby thought the same, we managed with a 20% loss in wages and still managed so will carry on and save the 20% :)
I think, if it's acheivable, it is a sound strategy for sure. The situation may change and Faith and I may have to adapt, but for now we'll keep on going and throw a little bit under the bed, so to speak.
I think it's a smart move to invest it in something rather than up the spendings every month again. Who knows how it will go in a few months and maybe a new series of lockdowns and less income will be introduced. Best to keep it up this way, right?
Yeah, it seems to be a safe course of action I think, and provides options down the track if things take a turn for the worse again. If I was to. Buy BTC it might even make me some money huh? It gives us the ability to be flexible though, and I think that's what people need right now.
Has the situation had a huge impact on you or are you not really affected?
Exactly, that's what I've been doing as well, putting it in BTC and a few altcoins. Spreading the chances, hoping that in the end it makes some extra money rather than saving it on the normal bank account.
During the lockdown, I got hired for a job that I had my eyes on before the lockdown started, but then the situation got a bit stressy (not knowing what was going on made me stress the first weeks) so I kind of forgot to apply for it. A few months later it turned out that this process was on hold anyway due to my boss being infected with Corona and so eventually, I got hired during the lockdown. It's officially a long term job, but so far not all of the countries are finding enough people to participate so in a month, we will know which ones will have the long term job. Mine is kind of rocky at the moment.
Not going to worry about it though, I tried my best, and if the response here isn't as good as I hoped, there's not much I can do. In the end, the universe will deliver something else anyway. But I have to be honest, I do hope it works out so of course I'm going to give it an extra push this month :)
So where most incomes have been reduced, here, we received an extra parttime income moving houses and buying some furniture for our new place wasn't a problem. Thanks to that job. Hopefully, it stays that way, if not, I will see how it goes. It looks like my boyfriend is going to be promoted soon anyway, which was the case before lockdown also, but then that was put on hold as no one was at the office.
But I'm pretty happy that we didn't have stress about money during those weird months. I'm pretty thankful that we got spared that part, as I know many people have been struggling :(
Seems things have been sort of ok for you which is good. Stress can affect people in so many different ways, most negative, and it's great you've been able to avoid it in the main. So many people are struggling...Throw in some additional stress and things can spiral out of control easily.
True, and trust me when I say, I've been there as well. It's thankfully in the past, and not planning on going back there, but sometimes life throws stuff at you, that you never saw coming. I don't think anyone saw this pandemic coming.. Thankful that this wasn't a reason for stress here. Anyway, good to read you will be having some more reserves soon, hopefully it will be worth even more in the future ;)
Glad you will be getting back to normal work routine and income, disruptions are stressful. You did the right thing cutting costs and continuing with an added nest egg for future disruptions, I don't think we are anywhere close to done dealing with the economic fall out from covid. It was a good eye opener to just how fragile our routines and quality of life can be. I did what you did with the nest egg a few years ago when I got disrupted and when things whet back to normal I continued limiting my spending, all the tools I have learned helped during this mess. Diversify your savings, put a little in all over.
Makes sense right? I think habit has a lot to do with attaining goals and positive results...We built a habit of spending/saving over the last six months and it won't seem so hard to continue with it, at least initially until things may change again. It will give us additional flexibility in the future if things go pear-shaped again.
You clearly know what I mean because you did it. Living more simply and without as much stress has to be a good thing...My thoughts anyway.
From my perspective, once you actually bite the bullet and trim the fat, all it takes is willpower to continue, the hardest part was to shake the spending habits in the first place, carrying it on when cash flow is plenty-full is actually easy as long as you keep certain goals in mind. The peace of mind it will give you when things get rough unexpectedly is all worth it. Don't forget to treat & reward yourselves for a job well done from time to time so you don't crack and go on a spending spree. Spending becomes hard when you begin to think of investing. Also using cash instead of plastic and physically seeing it flow out is a huge help. With 6 months behind your belt, you should have figured out the ropes and likely to be able to continue the saving habits easily.
Yup, I've basically been saving like a mofo since Feb. In many ways it's illustrated to me I could have done this all along so kicking myself a little. Being in tourism it hit us hard and fast and as you said the repercussions of it all have yet to be felt. I have a feeling my Plan B will have to come into action early next year
That's the thing right? We could have been doing this earlier and still enjoying life! Still, we're doing it now and that's what matters.
Plan B...Maybe not ideal, but the good thing is you have one! Let's hope our plan A's work out though. 🙂
hmmmm I am starting to want to do Plan B though. It's appealing to me
That's a good point actually... Sometimes plan B isn't altogether bad.
yep. The more I look into it the more I think we may just opt for it anyway as it will be quite cool in a different way. Haha being cryptic but all will be revealed in the coming months
No worries on the crypticness, it's your business until you decide to share, if at all. I think this is one of the cool aspects about mulling over these things; We tend to think more objectively and out of the square and it can turn up some really great options. Let's see where plan B leads huh?
it will be shared and blogged about. It will be too cool not too
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That should give you a bit of breathing room, but I agree that the full effect of the pandemic has yet to be felt. Things look bleak now, but I expect they will still get worse before the end.
The smart people are working towards mitigating the risk, although I think it's really difficult to see what direction it will come from...Maybe nest to assume all directions!