The week my plans changed and how I learned to make my money adapt

Kimberly Gillan | Presented by Bendigo Bank

Financial curveballs can throw the most well-oiled plans into chaos. But a flexible attitude (and banking) can help you get your plans back on track as quickly as possible.

When Jen Boonen’s BMW X5 suddenly broke down on a busy Sydney highway exit, she was obviously in a bit of a financial bind. Her 10-year-old daughter was in the backseat when she drove the car to a nearby gas station and arranged to have the car towed to a mechanic who confirmed her worst nightmare: It would cost $4,000 to repair.

“It was just the wrong time: we weren’t in a financially stable position and it was really worrying,” she says. “I had had the car for about ten years at that point and it had been a great car, but the parts cost a lot when something went wrong.”

Using a combination of cash and her credit card, Jen paid the mechanic and immediately put the car on the market.

“I just didn’t want to take any more risks. I used a lot of the money from the car sale to make a down payment on a Hyundai Kona and took out a five-year loan, with the assurance that the car came with a five-year warranty,” she says. “I didn’t want another vehicle without a warranty. I wanted certainty and knowledge; I had a plan and I knew where I stood.”

For Tara Saxon, the budget took a hit when she tried to renovate a historic homestead in remote Walcha, NSW, and didn’t consider traditional transport costs.

“The glazier alone charged an extra $1,100 to drive to the site and replace the historic windows and had to come out twice,” Tara recalls.

“The same goes for a builder: I had to cover his gas and travel time and then house him and provide him with meals while he did the work. And at the end of the renovation, I had a lot of leftover building materials that I couldn’t sell because of the remoteness. Getting containers and hauling waste to landfills ended up costing triple what we budgeted.”

All told, Tara says her original budget would increase by $40,000, which meant she had to make some quick decisions to keep the project on track.

“We definitely didn’t do the renovation we had planned and when we finally put it on AirBnB we had far fewer bookings than we expected,” she says. “I didn’t expect the distance to have such an impact. Ultimately, we sold the property to recoup the costs.”

Now Tara, a certified money coach, works with women who want to build financial security through real estate, and says one of the first things she teaches her clients is how to create a realistic budget.

“I learned the hard way that you need to build a 20 percent contingency into the budget when renovating an older home,” she says. “I also recommend a weekly 15-minute renovation check-in where you ask, ‘Where am I this week? What does the budget look like? What have I accomplished? What have I spent?’.”

Unfortunately, none of us are immune to financial curveballs, but Dennis Teale, managing director of retail banking at Bendigo Bank, says there’s comfort in knowing you have flexible access to money.

“Understanding and taking control of your finances can help you experience a sense of security and peace,” he says.

“What sets Bendigo Bank apart is our personalized service: we take the time to understand our customers’ situation. In some cases we can offer customers solutions that can give them faster access to funds, and in other cases access to flexibility to help pay for minor emergencies or major life events.

“By having multiple options, Bendigo Bank can help bridge the gap between unexpected crises and ensure customers return to financial stability.”

For more information about Bendigo Banks products and services, visit bendigobank.com.au

All advice in this article is of a general nature. This information does not take into account your personal objectives, financial situation or needs. You should consider whether it is suitable for your circumstances before acting on this information. Please read the relevant disclosure document(s) for your selected product or service, including the Terms and Conditions available on our website, before making any decision.