It was only a short month ago that I penned my first Think About What You Can Control blog – the alert system hadn’t quite been devised, in person social interactions were still possible, and we could indulge the simplest of pleasures (like buying a daily coffee).
On reflection it really is extraordinary to consider how much things have changed in such a short period of time.
The Economy – my commentary then versus now.
| The Economy | Then (Mid-March 2020) | Now (Mid-April 2020) |
|
Globally |
Markets are based on trade and confidence. Naturally we’ve seen a downturn in both which has resulted in share-market declines. | Economic concerns have deepened with the term depression now in use by the IMF. Although some markets continue to rally. |
| Nationally | Forestry, manufacturing and tourism are struggling with the lack of demand and foot traffic. | It is no longer just a sector conversation, the NZ economy is now expected to shrink in 2020. |
| Locally | Kiwi’s are starting to feel it particularly in places like Queenstown and Rotorua but also generally. | Job losses have unfortunately become a reality for many. |
Yes, it makes for grim reading. However, as Treasury rightfully points out, this is a ‘once in a century’ public health shock, the impacts of which remain uncertain and will vary depending on our alert level duration.
So, what does that mean for you?
Right now we can do very little to change the above – and granted for many that has very significant consequences. However, if I revert to the core message of my original blog, I would again encourage you to focus on what you can control and make a plan accordingly.
As our Rotorua business owner Sally Copeland explains in our latest video Q&A taking back control of your finances and working out your current position, even if it’s a difficult thing to do right now, is the first step. From here you can genuinely make a plan to trim, reset or seek assistance if that’s what is required.
Interestingly for some this lockdown period has bought them to realisations about the amount of money they don’t need to spend each week. As Sally points out, surprisingly, yes that flat white will make a difference on your mortgage if you want it to.
NZHL has a network of nearly 80 New Zealand business owners who are helping people just like you to get in control and focus on financial freedom, faster. Please check out our latest video Q&A series for further information and financial guidance to get you through COVID-19.
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