29 Sep Scams and Boring old Budgets
Scam scam scam
Time to climb onto one of our favourite hobby horses; scams. If life wasn’t hard enough, we’ve heard of a significant uptick in scams. And that’s hardly surprising; when we are under greater financial pressure, we are prepared to take bigger financial risks. Scammers know this and are trying to take advantage.
Currently, the one we are seeing the most often: Phishing scams pretending to be IRD. We’ve had a HEAP of people get in touch about these with some getting absolutely inundated with emails texts and even calls. Checkout this link from IRD (yes, it’s really IRD) that highlights some of the ways you can check the legitimacy of the email. Never reply to a tax message saying it’s from IRD, or your bank for that matter- and of course, if you’re ever not sure please check with us.
And while these IRD phishing scams are what we are seeing the most at present, there are a range of other ways that dishonest actors are trying to relieve you of your money. Netsafe has a fantastic resource that identifies a range of different scams.
But perhaps the most concerning is the Pig Butchering scam. This is loosely based on the romance scams of 10+ years ago but are a little more sophisticated. And while it can use romance as the bait, scammers can play on a number of other emotions to reel us in. Not heard about pig butchering? Have a read of this. Grim.
As always, if an investment sounds too good to be true, it probably is. Received a text about an unexpected tax refund? Not real. And someone – anyone that you’ve not met – putting you under pressure on a phone call? Probably a scammer. If in doubt, hang up!
Boring old budgets
One piece of advice that is commonly dispensed in a tougher economic environment; do a budget. While that’s decent enough advice, it can be hard to know where to start. We think having a budget is a great idea, even if it’s not the most exciting thing to do. Here are a few different methodologies.
Zero-based budgeting is a great choice for those who like everything accounted for; each expense is justified from scratch every time a budget is set, which means nothing sneaks in just because “it always has”. It’s a bit of work but brilliant for finding and trimming hidden costs.
Rolling budgets are another popular tactic, especially if the business/household faces lots of ups and downs during the year. These budgets are refreshed monthly or quarterly and keep looking a year ahead, shifting with anything new that pops up. If unpredictability is the norm (like seasonal spikes), rolling budgeting helps keep the business nimble and ready for surprises.
For those whose business is nice and steady, incremental budgeting can be much simpler. Here, last year’s numbers form the base—just tack on a bit for inflation, growth, or changes and off you go. It’s quick, fuss-free, and works well if not much changes month-to-month, though it’s worth watching out for old habits and costs that don’t need to stick around.
Some owners are analytical and might prefer activity-based budgeting: this method builds the budget around key activities, highlighting cost drivers and helping spot ways to streamline operations. While this needs more detailed tracking, it delivers sharper insights when businesses want to connect spending back to what drives results. No matter the approach, using apps, spreadsheets, or online tools makes the whole process much smoother.
Ultimately, the methodology you choose matters less than simply making a start. Just having a crack at doing a budget – however you go about it- will help get you clear about what’s come in and going out. So have a go, and if you need some help, get in contact.
