What money adjustments to make?

Global inflation is unavoidable but there are certain practical steps we can take that can help us alleviate financial stress.

Step 1: Start Budgeting

If you haven’t started budgeting or lack confidence to create a budget, it is time to seek professional help. Budgeting helps ensure you are not consistently overspending and have a positive cash flow at the end of each week. For any good budget to work, one must take into consideration that our living expenses have become more expensive and be disciplined to spend within our budget.

Step 2: Paying Down Debts

Look at what are the high-interest debts (example: credit cards) that you own and start paying them down quickly. Make this your priority as rising interest rates means higher expenses for you.

Step 3: Build An Emergency Fund

Do you have money set aside for “rainy days” or an emergency fund?

Most financial experts will suggest that everyone should have enough savings to meet at least months of your monthly living expenses. Make this a financial goal if you don’t have one yet. Seek professional help if you are not sure what to do.

Step 4: Reducing Your Expenses

Examine your monthly bills and ask yourself (can be a family discussion) what are Essentials, Wants and Needs. Perhaps you can start trimming some lifestyle luxury items from your list. Shop around for the best prices such as your groceries, insurance, petrol, energy providers - basically everything before you purchase.