Flood Recovery: Help For Businesses And Households

With the high cost of living, a recession looming, cyclones, and floods— households and businesses are going to need all the help they can get to get through this disaster.

Shula Newland, who is Founder ofFull Balance Financial Coachingand social enterprise AffordITNZ—which providesindependentfinancial planning, budgeting,and coachingto families and businesses—said help is available in many forms and it is important people realise their options before giving up hope.

For this reason, she has extended the support group she set up for Covid to provide support for those hit by the flood. Newland keeps the Facebookpage Financial Support NZup to date with the help that is out there,and is available to privately answer any questions as well as provide financial tips in general.

“I really feel for everyone being impacted and I don’t want people to be stressing out unnecessarily when there is help and strategies available.

“The immediate need with the floods and life is survival: food, water, shelter, and transport, which the Government will provide and fund if necessary. This keeps things simple initially, but then we need to go into planning mode for the interim cashflow. Longer term, we then need plans for when the help dries up and we are still in recovery mode. That’s when we often see a lot of people come and get help, but sometimes it’s too late.”

Ahead of the coming recession, as well as dealing with the aftermath of the floods, Newland explained that people still have many options,and it is important not to panic, but to have a plan in place.

“Those families thatare feeling stressed about their finances can access free, confidential, and independent financial coachingvia the Employee Assistance Programme(EAP) or book a time with a free local community financial mentor or budget advisor.”

If you are in business and struggling, talk to your accountant in the first instanceand look for referrals to a specialist if needed, including a financial coach that specialises in small businesses.

Funding and referrals may be available via your local Regional Business PartnerNetwork, especially as the Government opens up more and more funding in response to the flooding.

“Many business owners were enormously impacted by theCOVID-19 shock and are still strugglingto pay back all the debt they incurred over the last few yearsto get through COVID.If they have been hit by the floods, this is going to impact their cashflow and ability to service debt and survive even more,” Newland said.

Newland offers three key tips for people and businesses to survive, plan and then thrive through these storm clouds.

1. Cash is king.

Literally, you never know what is going to happen with technology e.g., when EFTPOS machines don’t work due to power and fibre outages.

“The first thing I did when COVID first hit, was full the car with petrol and get out cash.

“For those that can’t pay for their basic living costs and have no access to cash or investment funds, you can always access your KiwiSaverin hardship,” Newland said.

2. Have a plan

Once you have gotten over the initial survival mode, it’s important then to take stock of your financial situation and investigate options available.

Do you know what the minimumyou need to get by on? What is your back up plan if things get worse? Can you find other sources of income, likerentingout a room or take an extra income on the side?

3. Get good advice

This isn’t the first time New Zealand has moved into a recession or been affected by natural disasters and it won’t be the last. There are many financial experts who have experienced multiple recessions and they often have plenty of knowledge about protecting wealthand getting through this.

Engage with experts and ask for help sooner rather than later, Newland said.

“They can help you determine whether you can get through, or you need to bail out sooner rather than later.”

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