Bills, baby and breakthroughs. How free financial counselling changed our lives
18 December 2024
Bee says financial counselling offered her support and encouraged accountability.
When Bee went on maternity leave, she and her husband were confident in managing their money. They avoided impulse buys, stuck to a budget, and invested any extra. But after having their first child and buying a home, their income dropped and expenses more than doubled. This Moneycare Week (19-25 January 2025), Bee shares just how life-changing it was to engage with a free Salvation Army Moneycare financial counsellor.
Bee says:
We have always been careful with money. Growing up, I faced poverty and a lot of hardship, so I was determined never to end up in that situation again. Before our baby came along, we were on top of things — no debt, and we were saving and even investing a little.
But then, during the COVID lockdowns, everything changed. The house we were renting was potentially going to be sold, and with very few rentals available in our area, we were forced to rethink our plans. We had been saving for a deposit, but buying a house wasn’t something we’d planned to do so soon. However, it felt like our only option.
We were grateful we could afford to buy, but suddenly, our mortgage payments were nearly double what we’d been paying in rent. On top of that, we faced new expenses like council rates, home repairs, and the rising cost of daily living. With me on parental leave, our income had also dropped.
Spending for ‘survival’
As a new mum (with our daughter waking every 30 minutes, day and night, life seemed an exhausting blur), I simply didn’t have the time or energy to research every purchase or keep to our strict budget.
I was so tired, and honestly, everything felt like a ‘survival’ buy — takeaway meals because I couldn’t face cooking, coffees with my mums’ group just to feel connected to the world, and a whole heap of baby gadgets that promised to solve our sleep problems (spoiler alert: they didn’t).
Soon enough, all of those purchases started adding up. We got into the habit of ignoring our bank statements and knew deep down we were overspending, but didn’t want to face it.
A reluctant start with financial counselling
I knew financial counselling could help, but I kept putting it off. I felt embarrassed — after all, I actually work part-time for The Salvation Army’s Moneycare, yet I was struggling with my own finances.
I kept telling myself our situation wasn’t ‘bad enough’ to warrant seeing a financial counsellor. I even felt guilty, like I’d be taking up a spot that someone else might need more.
What finally convinced me was realising that no one is immune to financial stress. Even doctors need to see other doctors when they’re unwell, so why shouldn’t we seek financial advice when we were struggling? That’s when we decided to book an appointment!
The first appointment: Laying the groundwork
Our first 90-minute session with a Moneycare financial counsellor took place over the phone. Honestly, I was nervous but also felt relieved to have finally taken that first step.
Right from the start, the counsellor made us feel comfortable, and our anxiety about the situation began to ease.
During the session, even though we could only estimate some of our expenses, we went over our income, spending, debts and assets. The counsellor also helped us set some achievable goals — like spending less than we earned, paying off our home loan faster and getting a better understanding of where our money was really going.
She gave us homework: to review three months' worth of bank statements. That’s when we realised we had completely underestimated our spending.
Gaining control through financial counselling
By the time we had our second 90-minute session, this time as a video call, things were already looking up. We went from facing a projected yearly deficit of tens of thousands (the way we were going) to having a plan that put us $150 in credit each week. The change was like night and day.
The counsellor helped us create a strategy to stick to our budget by categorising our spending into ‘now, next, and later’ priorities. We even started using butcher’s paper to track our spending each week.
Having that visual reminder helped us celebrate the small wins and tackle any challenges that came up.
The ongoing support from our financial counsellor was crucial. It wasn’t easy managing everything with a baby at home, but seeing our progress gave us the motivation to keep going.
Good strategies for financial success
We adopted several practical strategies that our Moneycare counsellor suggested, which really helped us get back on track:
- We set up text alerts from the bank, so we’d know when our bills/direct debit account balance was low
- We created different ‘spending buckets’ in our bank accounts for groceries, bills and leisure
- We shopped around for better deals on utilities and reviewed our insurance policies
These strategies helped us regain control of our finances, one step at a time.
The final session: Meeting our financial goals
After the first two sessions with our financial counsellor, we were well on our way. During the last (third) session, another video call, we discussed our spending again. While we were still a bit over in some areas due to unexpected life events — like a death in the family — it was nothing compared to where we had started.
We were now making informed decisions, and that was making all the difference!
Most weeks we were no longer spending more than we earned, and we were making extra payments on our mortgage. We even started working on goals like setting up our Wills.
We worked through an amended money plan/budget based on what we had learned over the past few weeks and talked through more strategies to manage both spending and savings. By the end of the session, we also completed an achievement survey, which gave us a clear picture of how far we had come.
Some of the strategies we learned and continue to live by are:
- Emergency savings: Setting up both short- and long-term emergency savings to handle any surprise expenses
- Regular budget updates: Every time there’s a major life change, update the budget to reflect it
- Knowing your boundaries: Get clear on which reasons you’re comfortable going over budget for and which ones you’re not — for example, a death in our family meant unexpected travel
These strategies helped us stay flexible and prepared for life’s inevitable ups and downs, all while keeping our financial goals on track.
Life-changing lessons from financial counselling
The accountability and support from our financial counsellor were absolutely key to our success. She was like a trusted friend — someone we could speak openly to about our financial struggles without fear of judgment. She celebrated every small win with us and gave us clear, practical advice when we needed it.
The most significant changes from the whole experience were:
- Understanding our spending habits and sticking to a weekly budget
- Getting on the same page financially as a couple, which improved our communication and teamwork
- Setting clear goals and taking small, manageable steps to achieve them
Six months after our first session, we’ve achieved all of our financial goals. Now, we’re working with a financial advisor to explore investments and plan for the future. What I’ve realised is that it’s not always the size of the income that matters — it’s how you manage it. Some people with high incomes never save, while others with modest earnings still find ways to set a little aside.
Financial advice for the road ahead
If you’re reading this and considering financial counselling, please don’t be put off by the word ‘counselling’. It’s about getting the guidance and support we all need sometimes. The Salvation Army’s Moneycare financial counsellors are there to help, and their services are free for anyone who needs them.
All I can say is, don’t leave it too late. Even on a small income, even when it feels overwhelming, making informed financial decisions will not only help you take control of your future, but it will also give you peace of mind.
That’s priceless!