Last week we got the news that we are now seeing another rate rise of 0.25%, bringing the cash rate to 4.35%. The continuous increases sees many people who are financially stressed, and worrying about the future and what they can do.
But can everyday people make a difference to inflation? The answer is yes. Everyone can do their bit.
Reducing inflation is a balancing act between reducing spending and not creating a recession – so it makes sense to cut back on the items that aren’t essential. Looking at the statistics from the ABS, spending is coming down but not fast enough. The ABS has reported Transport and Health are two of the major areas of increased spending during 2023, but so is Clothing & footwear, and Alcohol! Essential costs are still going up so the only way to bring it down overall is to cut unnecessary spending dramatically.
So what can you do to assist rising inflation and save money for the increasing cost of living?
- Stop the Unnecessary Spending: The first thing we can say is please stop the unnecessary spending. As Our Group manager says to her friends. “Please stop buying shoes, and new tops and eating out. This is directly affecting inflation”. Those who are not in financial stress, help those that are and do your bit to have an impact on inflation.
- Save for what you need or want: Don’t use Zip Pay and Afterpay (or any buy now pay later facilities). Save for it. If you cannot save for it don’t buy it. As mortgage brokers we see Zip Pay and Afterpay used mostly for items that are not needed.
- Mortgage Restructure: Restructuring your current home loan may save you hundreds a month – so its worth asking a question.
Take a look at what you can with your finances to help drive down the interest rate! Chat with a WhiteStar Mortgage Broker for a no obligation free consultation.