The RBA rate rise was announced on 3 May 2022 and the reserve bank has lifted its official interest rate by 0.25% – for the first time since 2010.
Many Australians are living with the daily stress at the petrol bowser, checkouts and the general cost of living. The pressures to make ends meet is only going to get tighter with the recent rate increase.
But it had to happen.
With inflation currently at 5.1% the RBA rate rises could very well be the only way to combat this.
FOR EXAMPLE – an iceberg lettuce in Aussie supermarkets is currently $5.00.
If everyone has enough money to buy the lettuce, this allows for the price of the lettuce to increase.
If people have less money to spend, and only 50% of people are able to buy the lettuce, this will start to drive the price down – and start to combat inflation.
The average home owner will now be paying an extra $50 – $60 a week on their mortgage. So how do we find the extra dollars?
Hot tips to help you tighten the purse strings
Review your budget – look at your current budget and where you are spending money – a great place to start is the supermarket – do you really need that lettuce?
Check your insurances – Do a quick health check on your insurances, do you have the right cover in place? Is your health insurance in order (do you still need orthodontic cover?).
Review your mortgage – this is an excellent time to talk to your bank or mortgage broker to see where your current interest rate is sitting.
Subscriptions – Free trial lapsed on the latest app you downloaded? Check your subscriptions as this is an area for potential savings.
Tax Planning – speak to us today about small business tax planning, and how you can save money before the end of the financial year.
