Money Month - Part 1

Nobody likes talking, or even thinking about it. It can be awkward, stressful, and cause plenty of arguments. No, this blog isn’t about a certain Rugby World Cup final. We’re talking money!

At PaySauce, we’ve got our heads in money-land all the time, so we’re right behind the year’s Sorted Money Month campaign. We know times are tough for many out there at the moment, so we wanted to create a series of blogs that will lay out a few resources to enhance your own financial literacy and that of your employees.

Introducing Sorted Money Month

Sorted Money Month is a public awareness and engagement campaign from Te Ara Ahunga Ora Retirement Commission. It aims to demystify money and improve New Zealanders’ financial literacy. This year’s theme, “Pause. Get sorted”, builds on the foundations from last year’s campaign, and focuses on topics relating to investment, and building resilience around money.

Sorted is a website from Te Ara Ahunga Ora Retirement Commission that provides some awesome tools to help you get on the right path with your money. It’s a free service with heaps of interactive resources available to help you calculate your debts, budget and manage your money, and even help with ways you can invest! Through the website, you can check out all the Money Month events going on in your neck of the woods to see how you too can get involved with the campaign this month.

When your business is doing it tough

Small businesses (less than 20 employees) make up 97% of all businesses in New Zealand. That’s a heck of a lot! Often, small businesses bear the brunt of our economic situation - feeling it earlier and harder than bigger businesses.

In a survey released last year, Xero discovered that 46% of business owners and 60% of sole traders aren’t paying themselves to keep their business running. Additionally, 52% of Kiwi small businesses had to increase their prices to cover cash flow challenges. Cost increases combined with reduced spending from consumers creates an incredibly tough environment to own and operate a business. And more often than not, when there is major stress in your wallet, there will be stress in your mind too. As a payroll provider to small businesses, we spend almost all day every day talking to small businesses. While there’s a lot of variety - what industry you’re in, where you live and work, how many sugars you have in your tea - we know that there are a lot of similarities too. One thing many small businesses have in common is the challenges you face, and right now, we’re hearing a lot of it.

Where to get support

When times get tough financially, the best place to start is to recognise it. The earlier you realise that things aren’t going so well, the quicker you can take action.

The first port of call, when the going gets tough, would usually be your accountant or bank manager, and maybe a lawyer if you have concerns about legalities. A qualified financial advisor can help turn around your business, as they can help you analyse your financial situation, develop a new plan for the future, negotiate with creditors on your behalf, and manage your tax and compliance obligations.

It is important to have honest conversations with these trusted advisors, as well as with your creditors and your staff, so everyone is on the same page. Creditors are often open to re-negotiating terms, offering payment extensions, or setting up manageable repayment plans. Ensure that any changes in payments for your employees are legal and mutually agreed upon. Both of these open dialogues mean that, to the best of your ability, you can avert any legal complications which may cause further stress.

You can also leverage government support or professional advice, and we are super lucky to have heaps of this available in New Zealand. For example, the Ministry of Business, Innovation, and Employment (MBIE) website provides numerous resources for businesses, including information on financial assistance programs, business mentoring initiatives, and industry-specific advice. The business.govt.nz website explores tools, resources, and tips to help with the running of your business, right from inception to full operation.

If you are a Xero customer, you also have access to the Xero Assistance Program (XAP) designed to help small businesses. XAP gives free confidential advice via face-to-face meetings, telephone, live chat, and online counselling for anybody that needs extra support.

There are also heaps of help available on the First Steps website, which is a platform designed to encourage business owners, managers, and employees to prioritise their well-being. First Steps has access to a huge list of qualified providers who can support you in navigating the many emotional well-being challenges that come alongside running a business, as well as free resources such as articles and videos on a whole range of topics relating to mental health and well-being.

Most importantly, reach out to your friends and whānau for some moral support. There is no shame in asking for help or delegating where you can, and leaning on those around you can help ease the mental load when times get tough.

Helping manage personal debt

Debts can come about in different ways, such as Buy Now, Pay Later services, personal loans, credit cards, overdrafts, and unexpected or emergency expenses. With inflation and interest rates high, more and more Kiwis are finding themselves in financial strife.

If you (or one of your employees) have debts hanging over your head, it can be difficult and stressful, especially if you are trying to handle your finances on your own. At any stage, you may feel embarrassed or stressed by your financial situation, but we want you to know that you are not alone. There are plenty of awesome organisations that can help you get ahead again in a compassionate and non-judgemental way.

Advice and support

MoneyTalks offers free financial help via texts, calls, or in-person meetings, giving Kiwis access to a nationwide network of financial mentors. The Financial Mentors at MoneyTalks provide advice to people who are seeking free budgeting help, who are experiencing financial hardship, or who need to make urgent decisions that impact their money. They can also refer people to their local budgeting service which can offer ongoing free budgeting help while working to get finances back on track. The free MoneyTalks helpline listens and provides advice and support to anybody who wants help with their money. They share information, provide choices, and connect people with local services such as food banks, health services, consumer rights, and employment services.

Debtfix is a one-stop-shop providing advice and debt solutions as well as a single point of access to other essential support services in New Zealand. They help all sorts of people (including business owners and the self-employed) with varying levels of personal debt no matter how complex. They work in conjunction with the nationwide network of financial mentors. Their wrap-around service includes working with creditors, banks, finance companies, courts, government departments, local budget services, and anyone else on your behalf, to help you get ahead.

We love the team at DebtFix so much, that they are also registered on our Payroll Giving platform through the PaySauce app! If you want to support Debtfix and the amazing work they do to support people facing tough financial situations, then you can donate directly to them through our payroll giving solution.

Financial providers

The organisations below operate collaboratively to provide access to fair and reasonable solutions for all New Zealanders.

Ngā Tāngata Microfinance is a charitable trust focused on helping financially vulnerable New Zealanders by offering fairer, kinder little loans. All loans are interest-free, fee-free, and available to low-income whānau. They also offer the “My Money Kete”, a practical online toolkit with free tips and resources to assist you in getting ahead with money. Working with the financial mentor community, NTMT will help you get through a tight spot.

Good Shepherd NZ is a not-for-profit centred around improving long term financial wellbeing. Their Good Loans programme offers no interest loans to help people living on limited incomes access an essential item or service; without the risks of high-interest and unmanageable debt. Good Shepherd NZ also has a free debt programme, DEBTsolve, that supports people to take back control of their unmanageable debt through coaching, advocacy, and a potential no interest Good Loan. Good Shepherd NZ can also support people with the financial and economic impacts of family violence through its Economic Harm Support Service.

Money Sweetspot is a social lender focussed on working alongside everyday Kiwis (of all income levels) to put them back in charge of their finances. Money Sweetspot offers financial reset debt consolidations of up to $40,000 at interest rates that may be significantly lower than their existing loans. As a social lender Money Sweetspot counts losing customers as a success and by paying on time and avoiding new debt their customers can donate to charities they care about. By engaging in financial education and information their customers earn Sweetspot points that can be redeemed for additional amounts off their loan or put into their savings account.

We want you to know...

We know times are tough out there. We know plenty of small businesses that are struggling in the current economic environment - you’re not alone. The personal financial situations of many are pretty tough right now (both employers and employees). Keep these resources handy if you need extra support, and use Money Month as an excuse to assess your own financial situation.

Keep an eye out because next, we want to give you some ways to take control of your money. We’ll have a new blog coming soon, so watch this space!