Budget key to hard times: Prof
SOUTHERN CROSS University business school professor Ian Eddie says a good personal budget is the key to surviving hard times.
The lecturer, who is based at the Tweed Heads campus, says his students have looked at some of the aspects of potential hard economic times and particularly how that would affect business.
"If people have small businesses, if their sales or revenue decline, they will need to focus on their budget and how much they take out of their business," Prof Eddie said.
"If they are in a wage or salary situation they may need to save more."
Prof. Eddie said before the Global Economic Crisis Australians "basically spent all the money we earned".
"What we are seeing now is people saving between 10% and 20 % of their income. We are seeing people who have got jobs saving more money for that rainy day."
Prof. Eddie said people who end up out of work should carefully study their expenditure and how they can minimise it.
"We are seeing that already," he added.
"People don't eat out as much. Some people are growing vegetables in their backyard. The best advice is to make sure you have a good budget."