December 14, 2020
Getting into debt is easier than ever before for hospo workers. We have low and irregular hours, our employment isn’t secure and this year, it has forced many of us to borrow money from family and friends just to get by.
Plus, there are so many buy-now-pay-later options – you know, Zip, AfterPay, Openpay, etc. A recent ASIC report found 1 in 5 consumers missed these payments and paid $43 million in missed payment fees.
We’re going to look at hospo workers in debt in a two-part series. First up – how do we avoid debt in the first place?
If you’re not in debt yet and want to avoid it, listen up! The best way to avoid debt is to have a good understanding of your moolah. So how do you do that? Work out exactly what you earn. It can be tough in hospo when there’s so many cash-in-hand jobs, tips and irregular wages. But it’s important to note the hours you’re working and how much you’re getting paid. One simple way to do that is through the Hospo Voice Mobilise app. There’s a section where you can record your hours and your wages so you know exactly what you’re taking home each week.
Once you know what you’re earning, you need to educate yourself on your money and how you spend it. ME Bank has a great School of Money website where you can learn all about investing, your credit history, buying property and more.
Next step – work on your budget. Yeah, it sounds boring, but it can be the best way to manage your spending and make sure you don’t spend what you don’t have. Need some tips? ME Bank has a handy budget planner where you can put in all your figures and work out how much you have to spend on the fun stuff.
So your phone died, and obviously you need another one. Instead of heading to the first retailer you see and buying the latest iPhone, stop and think. Do you need the latest version? Can you buy an older model or even another brand? Could you buy a refurbished one? Or would you be better buying a phone on a plan and paying it off monthly? Are there any deals around?
If you’re tempted to pay with credit, have a think about whether you could save a bit and buy a phone in cash in a month or two. You could see if a friend has a spare phone lying around that you could borrow in the meantime. It can all help you avoid going into debt.
Before you splash your cash, think about whether you really need that pair of strappy heels? Is it really that different to the other pair you have? One good tip is to leave it behind and think about it for a day or two. If it’s still on your mind – go back and buy it. Chances are, you will have forgotten all about the shoes and moved onto something else.
One way to avoid debt in the first place is to make sure you’re getting all the money you’re owed. Check out the PayChecker feature on our Mobilise app and get in touch with us if you don’t think you’re earning what you should.
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