We’re at the time of the year when things can become particularly financially tough. Holidays are is not cheap, accommodating family is not cheap, and paying the end-of-year bills is no easy task.

Everybody has their own situation, but everyone can agree it is the living cost crisis that is hitting the hardest.

Bay Financial Mentors, Tau Awhi Noa, give free money management and debt relief advice – and they want people to know they are there if you need some financial advice.

“Our service is completely free, it doesn’t matter how many times you come – and, there is no limit,” says general manager Shirley McCombe.

Come for a chat

“You can come just for a chat. There’s lots of things that we can help with to give people the skills to be stronger.”

Shirley says their help is “not about telling people what to do”.  “It’s about giving them the skills so they can be more confident and resilient and manage their money.”

Bay Financial Mentors want to help guide and support you through tough financial circumstances such as the times we are facing now.

“Usually the beginning of January is quite quiet and it picks up in February – but last year we had constant referrals all the way through, and I imagine the need will be even greater this year,” says Shirley.

“With the cost of living crisis everybody is in the same boat – no matter how much money you have, everybody is finding it tighter.”

While some struggling to pay for the newest iPhone, Shirley says others are struggling to put food on the table.

“With the advent of ‘buy now, pay later’ [schemes] and things like that, it means that the impact of the spending kicks in much quicker than in the past,” says Shirley.

So what can we do this side of Christmas to avoid the struggle of paying the bills rolling in, in the New Year?

“School uniforms, school camps even just having the kids home over the holidays is an expense because a lot of the schools provide lunches and things like that, and all of a sudden the kids are at home, you’ve got feed them, you've got family whanau coming to stay, so that's an extra expense,” says Shirley.

Don’t get carried away

“You need to know what you can afford and stick to it and not get carried away. I think the biggest thing is with a lot of these sales and things like that, people get really excited,” says Shirley.

 “We all love to be able to do nice things for our kids and for the people we love, and we go out and spend and haven’t thought about what we’re going to do when all those bills come in.

“It can make for a pretty miserable start of the year and it’s very hard to get on top of those debts.”

Shirley says this is the time of year that we tend to be a little more careless with our hard-earnt money.

“It’s the time of the year when we all give ourselves the licence to treat ourselves and treat our families.”

Kids are on school holidays, family have come to visit, you want to go out and do something exciting, not to mention all the Christmas presents that need to be bought.

Have a plan

“I think we need to be honest about the situation and maybe rethink the way we do things so that it doesn’t cause financial pressure and stress and arguments and all the things that go with financial pressure.”

Be prepared and have a plan, says Shirley.  “Being able to put small amounts of money per week away is absolutely the best way. Give your money a job.

“If you allocate the money into specific things, whether it be registering your car, uniforms, going to the doctor, or getting a haircut, and then you have money set aside for these things so you don’t get knocked off your feet.

Keep it realistic, know what your budget is, and stick to it, says Shirley.

“Generally financial mentors are not big fans of ‘buy now, pay later’, but if you are going to use them you need to have a plan and be able to pay it back when it’s due.”

“When it’s $25 a week and people think I can do that, that’s easy, and then you see something else and that’s $20 a week. They’re not keeping track and we see people owing hundreds of dollars.”

When it comes to having to pay it back, Shirley says the payments are often due in the same week. “That’s when people become stuck,” says Shirley.

“They become unable to make the repayments and then they get penalties and fees, which will impact their credit rating and ability to borrow money going forward.

“I’m not saying don’t use them, but you need to be very mindful of how you’re going to pay it back.”

People may get embarrassed being unable to afford a present for a loved one, Shirley says adults just need to be honest with each other.

Set a limit

“In our family, we do the draw and we only buy for one person,” says Shirley. “Do the Secret Santa thing, or set a limit.

“At work, there’s 19 in our team and we give gifts that we’ve made or repurposed or re-gifted or, however, that might be”

Shirley says she doesn’t want my kids to buy me a gift for Christmas.  “I would love a gift, but I don’t want a gift that puts financial pressure on them,” says Shirley.

She says Bay Financial Mentors is about giving people the skills “so they can be more confident and resilient and manage their money”

“At the end of the day, it’s their journey and we are there to support them and there is no shame in asking for help. In fact, it’s a strength.”

Bay Financial Mentors is only a phone-call away. Get in touch by phoning 07 578 0969 to make an appointment. Or email: admin@bfm.org.nz or see their website at: www.bfm.org.nz