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Is Inflation Deflating Your Finances?

There is no magic solution to avoid the rising cost of living in New Zealand.

With inflation at a 32 year high on the back of expensive housing, food and fuel costs rising, there is no denying that it is financially a difficult time for many people.

However as financial advisers, we have a few strategies that may help reduce the effects of inflation on your bank accounts and investments.

Clearly understand where your money is going - we recommend revising your bank statements so you can see exactly how you’re spending your money, and how that spending compares to a few months ago. Once you have your spending revised, it’s easier to see where you’re overspending and where to redirect more funds.

~ Remember, Save first, spend second! ~

Write everything down - Whether it’s writing a note on your phone or handwriting a list, it’s important to keep a detailed record of where your money is going as this helps you visualise your cash flow and cut back on unnecessary spending.

~ Visualising your future goals can help keep you on course. Which is exactly what financial planning is! ~

Start prepping your meals - Set aside some time to prepare and make a weeks’ worth of meals with seasonal and affordable ingredients to reduce overspending at the supermarket, reduce food waste, and to avoid ordering Uber Eats when you’re too tired or busy to cook.

Ask for a payrise - Kiwi’s are notoriously bad about asking for more money but in the current market workers have more power than they’ve had in quite some time. Ensure you are compensated fairly for your role. Do your research and see how your salary compares to others in your industry. Hay’s NZ has a great salary guide, check it out here.

Get into investing (if you’re not already!) and mix it up! - It might seem counterintuitive to invest when the market is dropping. But it’s actually a good time for anyone who’s not close to retirement to invest their money. Diversifying across several different types of assets to help withstand a volatile stock market period is recommended at the moment.

Lastly, stay calm, don't make any drastic decisions and TALK TO US at Foxplan Our experience has taught us that unforeseen events happen, so stay diversified and don’t panic as we’re all on this inflation ride together. Our team of experienced advisers are here to help, so please reach out to us today and book a non-obligation money talk.

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