MY FINANCIAL WELLBEING GUIDE
Helping you get back in control of your money
ASB Financial Wellbeing for more information
ASB Bank Limited 6444 22055 0620
Bex and James were both employed, earning good income and bought their
first home 2 years ago with support from parents.
It hasn’t been easy paying a big mortgage but they had been making ends meet
until Bex lost her job last month.
Now, with only one income and no savings they have a significant shortfall
in income. Bex and James try not to ask their parents for additional financial
support unless it is absolutely necessary. They are now really worried about
how they will survive until Bex finds a new job.
Their story
• Review spending to see where their
money is going. Useful tools – Income and
expenses template and Track my Spending
• Cut back on any non-essential spending
• Stop any memberships or subscriptions
that they don’t use – gym, newspapers, and
media subscription
• Review and negotiate their essential bills
to ensure they get the best deals that work
for them – power, phone, and internet
• Review their bank accounts to ensure they
are not paying unnecessary fees
• Talk to their bank about the financial
impacts they have experienced and
enquire about possible relief options such
as loan repayment holidays, switching
to low interest rate credit cards or debt
consolidation
• Bex and James reviewed their spending and found some reductions
they could make in their day-to-day spending
• They also cancelled their Lightbox subscription that they weren’t
using, as well as James’s gym membership - he’s been enjoying the
new routine of jogging and doing online classes he started during
lockdown
• They switched their power and internet plans and saved a minimum
of $100/month including a number of power shout hours
• They reached out to their bank and discussed options to reduce
their financial stress. They have been approved for a 6 month
mortgage repayment holiday and have also restructured some of
their debt to make repayments and interest easier to pay off
• Bex and James started a reduced income budget and feel a lot more
confident in covering their essential spending for the next 6 months
Considerations when making financial choices
Mortgage deferral provides temporary relief but the interest will
continue to be added to your loan at each payment date. You will end
up paying more over the life of the loan, either by increased future
payments or a longer loan term.
Recommendations
for Bex and James
What Bex and James did
Bex & James
Couple, no children
We are not managing our
essential needs well
Meet Bex and James. They’ve had a challenging time managing their money and keeping on top of bills. Find out more
about them, our guidance and the steps they have taken to get back on track.
Banking profile
Transaction
accounts
Personal loan
of $10k
Credit card
limit - $10k
Balance - $5k
Mortgage
of $400k
