Five smart moves to help offset rising rates and inflation
There is a lot of talk about interest rates, cost of living and inflation rising. We’re also in a time of falling financial literacy, which means we know we should be doing something, we’re just not sure what.
Too often this means people financially flee, freeze or stick their head in the sand and pretend it’s not happening. What if there was a better way? Here are five smart things you can be doing now both to protect your finances as well as to give them a nudge forward.
1. Create an emergency fund
Prior to Covid, emergency funds or buffer accounts weren’t really talked about. When Covid hit, they were suddenly super sexy. That’s because having a pot of money in case of emergency means unexpected repairs or illness don’t require you to dip into the credit card.
2. Live within your means
This is the secret sauce to having great finances. Too oo many people are trying to keep up with their peers and influencers who aren’t even buying the products they’re spruiking. My advice? Unsubscribe, unfollow and unfriend and think about what’s important t to you. 3. Find additional income Too often we head straight to tightening the belt on expenses (which is important) but we don’ don’t think about finding mo more income. Whether th that’s a second job, a side h hustle, becoming a d delivery driver, doing s surveys online, renting o out your stuff or even com completing your tax return – find finding more income can be a great t way to offset rising costs.
4. Invest for the long term
Let the power of compound interest do its magic and don’t be reactive about short-term market changes.
5. Diversify your investments
Many people have a wage, a home, and superannuation, so the super balance is critical because that’s the only income source you’ll have when you stop working. That’s why I’m a fan of multiple income streams and diversification across property, shares and business so that if one falls the other is stable or rising.