The number of us seeking budgeting advice has skyrocketed, but experts say there is plenty of help to get everyone through.

Our Government has claimed the largest rise in welfare payments in ‘more than a decade’, as it puts measures in place to tackle pressing social problems as well as support post-pandemic recovery.

Finance minister Grant Robertson said in a statement to media in May this year that by lifting benefits, they aimed to see money spent in the communities where people live.

Benefits rose between $32 and $55 a week per adult in July, and will increase again in April next year.

Since the announcements, analysts have said they welcome the move, but warned that living costs had increased dramatically over the past two years.

Coordinator for Central Otago Budget Advisory Service (COBAS) Pam Hughes says they provide a free budgeting service for people in the Central Otago and Lakes districts – from Ranfurly to the Teviot valley, from Raes Junction to Wanaka, and everywhere in between.

The team has seen a significant increase in need for their services and an increasing number of cases where financial stress has affected relationships.

Families are dealing with increasing costs of rent, food and other necessities, often alongside reduced incomes.

Pam says generally what the team does is to start with a ‘financial warrant of fitness’, which means they sit down and go through income, outgoings, everything financial.

They then look at either increasing income or decreasing outgoings, or both. Whatever might be possible, or best for each situation.

“People whose hours have been reduced, their income is reduced, and for many of them they wouldn’t have been entitled previously to things like working with families, community services cards and accommodation support because they were over the limit.

“It’s not about going on a benefit, it’s about knowing what support you can get while you’re on a lower income, and it’s not necessarily something people know about.”

Pam says they balance accessing financial support with looking at ways to decrease outgoings, the combination of boosting income and spending less being the secret to getting through.

“Short term, while people are working it all out, it might be that we also get food parcels in there to support them until they’re over whatever hurdles they’re facing.

“We can also help by negotiating with creditors to look at getting payments decreased or to access short term payment holidays.

“These are better solutions than going to high interest lending options where they get the money easily but it just makes things worse for them.”

Solutions might be as simple, Pam says, as looking at how often you make mortgage payments or reducing to interest only payments for a short time.

They also help people to explore wider strategies, such as structuring family get-togethers around everyone contributing food, sharing the cooking and providing refreshments.

Looking at gifts for birthdays and other celebrations – families may agree to buy for children only, all contribute a little towards one special gift, or limit spending to an agreed value.

There are many, many ways to spread the load, she says. And it’s important to accept that sometimes you might have to cut costs because of a situation that has arisen.

“Don’t envy what your neighbour’s got, everybody’s situation is different – look at your own back yard and get that right.

No two budgets are the same, Pam says, and everyone in the COBAS team has completed FinCap training and can respond to a wide variety of situations and needs.

“There’s no one right way and no one wrong way – you’ve just got to start somewhere, and we’re there to support you.”

Pam emphasised however, that it is now more important than ever for everyone to have a budget – not just those finding money is tight.

It brings surety and a way to manage how you’re tracking.

Most people she says go in and out of using budgets, but when life throws you a curve ball, it’s important to know where you’re at.

“In an uncertain world you need to know that you’re doing okay.

“You’ve got no control over what is happening; the only thing you’ve got control over is where you’re spending and how you’re spending your money.

“If you have that control, it’s easier if something happens and your income is reduced.

“It takes the stress away.”

COBAS budgeting services are free to access, thanks to funding from the Central Lakes Trust.

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