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How To Deal With Rising Inflation

Updated: Aug 4, 2023

How To Deal With Rising Inflation

Australian interest rates are projected to reach their highest point around the middle of the year (just in time for winter). The cost of living crisis is worsening. It’s therefore no surprise that households are starting to search for methods to tighten the belt and ride out the rise.

So, what can you do? Start by getting the best financial advice. ActOn Wealth is an independent boutique financial planning firm, and we’ve experienced an increase in clients seeking practical, realistic advice about how to deal with rising inflation. In response, we share some key recommendations for managing your finances going into winter and beyond.

Our team of financial advisors in Melbourne is available to you, wherever you are in Australia. We provide a no-cost, no-obligation introductory service. Despite rising inflation, there are means and ways of not only coping but, in fact, creating financial wealth.

What is inflation?

This is another word for rising prices. The inflation rate refers to how quickly prices rise.

Budget planning is crucial

Understanding your cashflow and budget can provide you with that ‘low-hanging fruit’ to make substantial savings. This is not about implementing personal austerity measures and going without. You’d be surprised how easy it is to make significant inroads in small ways. It all comes down to clearly understanding what finances are coming in and how and why money is going out.

A budget calculator is a practical way of crunching numbers. However, our team of financial planners in Melbourne will sit down with you and go a lot deeper. We will help you make effective decisions for now, as well as achieve your longer-term financial goals.

How to invest with rising inflation?

It sounds like a paradox in terms, but investing during rising inflation can be a strategic protective manoeuvre. Real estate, savings bonds and commodities historically generate returns that outpace inflation. Creating a varied collection of investments is a great way to build a successful portfolio. You can learn more about how diversifying investments can be advantageous by visiting our blog.

If you have not already dabbled in investment, now is not the time to throw yourself blindfolded into the deep end. Our wealth creation advisors have the knowledge, skills and experience to guide you through the various pros and cons.

We take care to understand your profile risk and long-term goals before preparing independent, tailored recommendations. Once we go through these together and you make decisions, we stay on board to assist and track your portfolio progress.

Review your superannuation and insurance funds

It is important to check your superannuation and insurance funds now to avoid overspending and ensure the best returns. We provide excellent Australian superannuation services and insurance advice. Our research team forensically examines your funds to identify opportunities and/or unnecessary premiums.

This procedure has been incredibly beneficial for some of our customers. It has resulted in massive savings that have had a positive impact on their lives. We’d go as far as saying they have directly contributed to life-changing outcomes.

Maximise your tax offsets

Have you understood and taken advantage of every tax offset available to you? Our financial advice does not extend to specific tax recommendations. However, we do work closely with taxation specialists and we are well-placed to identify potential opportunities for you.

If you’re a carer, living in an isolated area, or a senior Australian, you can access significant offsets. It’s important to unearth every viable option, as money saved is extra wealth made!

Save on energy bills

Understanding how to reduce your energy bill in winter can provide a degree of financial relief. There is plenty of information online offering great advice and suggestions, including:

  • Shopping around for the best deals

  • Turn home electric devices off at the switch when not in use

  • Opt to wash dishes by hand rather than in the machine

  • Avoid using a dryer - hang clothes out on a windy day and put them on a drying rack indoors when it’s raining

  • Put lids on saucepans when cooking

  • If you need to use the oven, try and do as much baking as you can in one session

  • Understand energy use peak times and avoid them

  • Minimise draughts in the home

  • Open curtains during the day to allow natural warmth in through the windows

If you're having trouble covering expenses or need help learning how to save money in the winter, contact our experts right away. Don’t make the mistake of thinking quality financial advice is out of your reach. We’re proud to say some of our most successful clients have been low to medium-income earners who, with the right advice and improved financial literacy, have reached incredible financial goals.

Save money in winter with ActOn Wealth financial advice

Truth be told, you can save money and grow your wealth year-round, not just in winter! Call our team today to arrange a no-obligation initial meeting. Winter might be coming, but so too is a whole new positive way of looking at your finances, despite rising inflation.

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