Living in a recession
So, families with two incomes, two cars, several cellphones and two mortgages - one on an investment property or bach - are going to find it tough this year in a recession if their income drops.
Well, they are not going to find it tough, they just have to live a little more simply. They may have to sell the investment property, they may have to reduce to one car - even share a cellphone. They may not be able to buy clothes when they feel like it. They may not be able to go away on overseas holidays and stay in top motels - they could holiday in New Zealand and say in a cabin. They may not be able to pay the debt on their credit card as fast as they would like with income they no longer have. They may not be able to spend $500 on their kids' birthday parties. They may have to look at the specials in the supermarket. They may have to paint the house themselves rather than getting tradespeople.They may have to get out in the garden and grow veges on Saturday mornings instead of going to cafes for brunch. Especially if they are on one income.
Welcome to the real world, where people live within their means. As many of us have been doing all our lives. However for families that live like money grows on trees - and lose their income because both partners have lost their jobs , they are going to find it really tough adjusting to living within their means on a ReStart package - even before going on the dole.