You're a prudent person as I would be bold enough to suggest are most of us on here who are trying to build a decent level of financial security into their lives. Unfortunately what you say is right and the majority of people regardless of whether they're in business or not live very close too or right up to the limit of their income and then some others live beyond their income and their homes become like an ATM machine and rising prices an opportunity to make another withdrawal. In my 40 years experience as an accountant I have observed that very few people live well below their level of income.
I think for so many business's to close permanently in September this tells you they were already very badly weakened from the previous 4 lockdowns in the Auckland region and simply couldn't go on. I fear for the mental health of these people. The ones I feel sorry for the most are those that invested their life savings into opening a new hospitality business in recent times, often investing hundreds of thousands with fitout, fixtures and fittings and a new commercial kitchen. They've put everything they had on the line and have had no real opportunity to build any reserves. Very sad times for them. The hospitality industry in Auckland will be gutted out by the time this is over.
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