Is this financial squeeze the real deal?

What is one of the biggest stressors for most people? FINANCIAL! Whether it is business cashflow or personal income/cashflow, money is one of the biggest causes of stress. When I look around me at the ‘younger’ demographic, it confirms to me that many think this is all a bit of ‘nothing’ or that it’s a problem that will go away. But I am here to tell you it won’t. As these people eat there smashed avocado on toast with an almond latte on the side ($30 a head), I get worried.

I also look at the unnecessary spending by so many people. Television/streaming service subscriptions, dining out, food delivery, non-essential clothing, multiple coffees a day out at a café, driving places that are in walking distance (fuel costs), buying non-essential electronics like ear pods – bigger tv’s – the newest phone. You see where I am going here.

Well, I am here to tell you that you need to STOP. Food prices are rising and do NOT expect them to go back down. Fuel is not going to be 90c a litre ever again etc etc. Our cost of living is higher and if you have a mortgage on your home, you are already experiencing a huge increase in your loan repayments or you are about to. Example. If you were paying $4,000 a month, get ready to perhaps start paying $8,500 a month. NO JOKE!!!!

The flow on effect to the individual is a realisation that surplus cash is much lower and for many, they are in the negative. Stress Stress Stress! So what are a few things you can do to help improve your personal cashflow:

• Cancel those streaming services. Get away from the screen anyway and spend time with your friends and family outside. Listen to podcasts, read a book or at worst, watch YouTube.
• Cancel the gym membership. WHAT!!! I know…..what I mean is, evaluate if you actually go to the gym or if you even enjoy it. If it’s a no, then switch to something else. Train outside at park, start running or walking, take up a team sport. If a gym is not a happy place for you then stop wasting your time.
• How often are you actually eating out? Going out for Chinese food 2 – 3 times a year for me was the highlight growing up. Today it’s a weekly (or multiple times a week) expectation. Start cooking more at home. Brew your own coffee.
• Stop driving short distances and then paying for parking at the other end. Walk where you can, ride, run, bus.
• Stop keeping up with the Jones’. You do not need the latest iPhone every time it is released. Do you NEED ear pods? Not only are ear pods bad for your brain, they cost a fortune and often get lost. Get the old school cable ones.
• Look at where your investments are held. Is all your money sitting in cash? Depending on your tolerance to risk, maybe you could invest in shares. They often pay a dividend (income) which will help feed your cashflow.
• Can you start a side hustle or side business? What are you passionate about? Can you monetise that?

These are just a few suggestions to help ease the cashflow pain. This current economic environment is not something to disregard. It is going to be a tough year and a tough 2024. Strap yourself in people!