Get help for budget blues

Tauranga Budget Advisory Service manager Diane Bruin. Photo/George Novak

Parent support groups are important as they reduce "the feeling of isolation".

Tauranga Budget Advisory Service manager Diane Bruin says it collaborates with a variety of organisations to support families in the Bay. Education is a very important factor in starting to change spending and planning, she says.

"We have found over the last 18 months in providing a lot more four-week workshops people have developed better skills in managing the household income. People who never looked at bank statements are now analysing what they have spent their income on."

But this year it had noticed a 25 per cent increase in working people seeking assistance. "Wages inTauranga are generally lower compared to other areas across the country.There is a lot of seasonal work due to the tourism and kiwifruit industry.

With the current developmentin areas across the Bay more jobs are being created." More people were getting into debt because they were over-committed with purchasing on credit.

"We see a lot of sales and interest-free deals to purchase TVs, home furnishings and so on and if they are repaid in that period it can be a great win. There is also the temptation when people get busy to buy takeaways and avoid planning meals for the week and they end up blowing the grocery budget."

Low interest rates on mortgages meant many people had upgraded their car, did home renovations and travelled overseas. "However the mortgage has grown and if interest rates rise this may create a lot more financial issues."

A lot of online credit was available instantly, she says. If you are struggling it is important to seek assistance. "Don't bury your head in the sand. We work with families to develop a plan to reduce debt, talk to creditors and negotiate a repayment plan. Working to a plan works very well even if the road starts to get bumpy and we have regular check ins where we can celebrate clients' achievements."

The service works with Papamoa Family Services and provides four-week More about Money Courses at Bayfair, Merivale, Welcome Bay and Te Puke and to clients at Work and Income Te Puke andTauranga.

We are also working with Tauranga Moana Men's shelter, Avalon people with disabilities, Te Tuinga Whanau, Parents and Plunket groups, Teenage Mothers classes, Pacific Island community Trust and Ngati Ranginui Iwi Trust To tailor courses to meet the needs of the group. We provide free one on one budgeting across many clinics to assist families," she says.

MAKING YOUR BUDGET STRETCH
Make your food money go further by reducing waste. Biggest wastage is bread, fruit and vegetables.

Freeze your bread, stew fruit and use veges in frittatas or soup.

Energy savings - switch off appliances when not in use and ensuring fridge temperature runs 2 to4degrees Celsius.

When making a purchase ask yourself if this is a need or a want.

You shouldn't spend more than 50 per cent of income on must haves such as rent, mortgage, power, food, car and basic clothing.

Maximum spend on wants should be less than 30 per cent including appliances, holidays
and entertainment.

Save the remaining 20 per cent for your wants, Christmas, holidays and emergencies.