Money talks: Julia Newbould
Lockdown has encouraged us to discover new skills and revive old ones
Living in the time of coronavirus is like nothing we’ve known before. Although the lessons we’re learning during this time are ones we’ve heard many times before.
For instance, we’ve experienced first-hand why it’s important to set up that rainy day fund and have three months of expenses set aside. We’ve discovered why it’s a good idea to use the three-bucket method of investing: short term, medium term and long term. If we’d had money in each, our long-term investments might have remained untouched in these tougher times.
Reuse, recycle and conserve – three more wise lessons. Not only do they make good financial sense, they also benefit the planet and our future.
In homes everywhere, wardrobes, bookshelves and cupboards have been decluttered, with hopefully more than a few unwanted items sold online. Even our gardens have drawn renewed interest, with many of us finding ourselves elbow-deep in soil, planting leafy greens and other edibles.
It’s not unlike post-war society, when our parents and grandparents had to learn the hard way to make better use of what was available to them.
In my recently published book, The Joy of Money, co-written with financial adviser Kate McCallum, we explore what people should do if they find themselves with less money at retirement than they expected. As we know, the options are to live with less, reduce expenses, increase working years or develop a side hustle.
Some side hustles might be jobs you can do which, if they are your thing, aren’t even like work – such as walking dogs, petsitting, completing paid surveys or chatting to students who are learning English. Selling things you’ve come across while you’ve been home and realised you no longer use – like ski equipment, a rowing machine or clothes that no longer fit – can also help top up your bank balance.
When it comes to being resourceful about earning money, each week since the lockdown I have been talking to individuals and businesses who have had to pivot what they do into something that could keep them afloat when their original business fell through.
They’ve had to dig deep to identify skills with the potential to earn them money. Others have repurposed equipment and channelled staff into other areas that are in demand now.
StageKings is a stage- and set-making company that works on large-scale productions such as the Formula 1 motor racing, the Ninja Warrior TV series and Edinburgh Military Tattoo tour. When events were cancelled, they knew they would either have to stand down their workforce or change direction.
A chance comment by a friend – that people would need desks to work from home – turned their offering into the IsoKing desk and since then they have added a number of work-fromhome accessories to their production. Business is booming. They realised they had the staff, they had the equipment, it was just a matter of rethinking and designing their product range. Jacqueline Dark is an opera singer, whose work also dried up due to Covid-19. She tapped into her skill set, which happened to include degrees in physics, and went about developing modules to teach children physics online. She had friends from the entertainment industry who could teach her how to film modules, and built an online offering to bolt onto her current website.
Chap Drive Thru is a program developed by the Chapel Street Precinct Association to make sure businesses remained financially viable while turning restaurants into takeaway only. Many restaurants around Australia have made the switch, but those who have been relying on delivery apps have been sacrificing much of their income to the app companies. The Chap Drive Thru project promoted a new way of ordering to help keep money within the businesses.
Recent research reveals that young people can now expect to have 17 different jobs over five different careers. Upskilling is an investment in our future, which ensures we are equipped for change in the business and employment landscape.
Fortunately, many courses are being offered online to help the education industry stay afloat and it’s a great opportunity for us to learn something new. And in April the federal government announced a higher education relief package to help people who have lost a job due to Covid-19.
Now’s the time to go back to basics, take on board the lessons learnt during Covid-19, and start building ourselves a better future.
In the post-war years people learnt the hard way to make better use of what was available