Many people think that Financial Mentors (FM) spend their days doing budgets and telling people how their money should be spent. Nothing could be further from the truth, and this blog focuses on how one day was really spent, to give a flavour of the diversity of what we do and who we help.
People working towards home ownership
The day started meeting with a mortgage advisor who wanted to see how we could help their clients and vice-versa. This was very fruitful, we can help their clients learn how to set realistic goals towards their dream of home ownership and they can help our clients get the finance to achieve that dream.
Families managing on a tight budget
The next meeting was with a client referred to us by Work and Income (WINZ) to assist with improved budgeting. The client had two young children and a large extended family and was using Afterpay to buy presents for the family, clothes for the children and occasionally takeaways. Their budget showed that there was a small shortfall overall, but they were dealing with this by careful use of money on a weekly basis. There was an issue with the car, so our next meeting will include reviewing the documentation relating to the purchase and repairs with the possibility of taking action against the seller.
People dealing with business debt and bankruptcy
A difficult meeting with a couple who wanted to go bankrupt was next. They had been in a business partnership which has been dissolved, and most debts to go to bankruptcy relate to the failed business. It was a long meeting because all the debts had to be identified and then assigned to the business, person A, person B or persons A & B. This case will have many more meetings needed before everything is finalised.
People facing legal action over debt
The day finished meeting with a couple who have received a Notice of Proceedings from the District Court for a debt they have no way of paying in full within 6 years. This is largely a legal issue, but with financial implications. We helped by putting together a budget and thinking of options going forward. The clients need to review their budget to see where they can make savings; and we need to put options relating to the Notice of Proceedings to the lawyers within the next week. This will also need more meetings to resolve.
More than just budgeting
Different days will bring different challenges, but our lives are definitely not just full of budgeting! As you have read, sometimes it's just one meeting where we can help and point you in the right direction, other times we work with people over months to come to a resolution.
So please, if you have any issues relating to your personal finances, please contact us.
We are here to help.
