No doubt you have noticed that you get less in the cart for the $. Fuel and other items have continued to increase, as has the cost of running your business. Most peoples stress levels are increasing along with it.
Inflation has been nasty the last 12 months. Building a home +20%. Fuel +11 % and rising. Fruit and Vege + 9%. Leaving a lot of people feeling at least some pressure and others very worried.
Interest rates increasing isn't fun. While they are doing it to bring down inflation, intending to cause a price decrease. For most it is a case of getting burnt both ways. It affects mortgages, credit card rates, car repayments and more. If you are looking to buy a home, you will get roughly half of what you could have 12 months ago.
Borrowing power decreases with every rate rise. An individual earning $100k with no debt or dependents could have borrowed $762k (April 22). By mid Oct 22 they could borrow $616k and if rates rise as forecasted in April 23 that number will be $560k. A massive $202k difference!
This can cause stress and a sense of hopelessness for those planing to buy their own home. And in fairness. some of that is justifiable.
Do we dare to mention the increase in mortgage payments? The pressure that extra $400-$1000 per month is placing on families. The hard decisions, the extra hours, the second jobs taken.
Believe it or not, there are ways you can come out of this stronger, in a better financial position and with a thriving business.
You can't control the items above. So don't allow the worry to overtake you. While it is important we acknowledge the changing situation around us, we keep moving. Adjust where needed, create a plan and get on with building. You can't control it, so don't allow fear to control your situation.
Below are some things you can do personally and in your business to help. Not all of them are fun or easy, but we didn't sign up for easy. You have built something, grown something, and kept going through far tougher times.
Create a budget at home and stick with it.
Find and cut 10% out of your spending.
By Fuel on the cheap Tuesday. ~40c a litre cheaper. 50 litre tank makes a saving of $20.
Create a Cash Flow document. Know where the money is and what you are spending on... and please cut that subscription that you use once a year.
Work to have a 3 month expense emergency fund in the business. Not income, expense.
Create a Pricing Strategy. Not to be confused with just increasing prices!
Keep Building knowing that your business will be better than ever on the other side.
Inflation, rate rises and challenging times come and go. And long after we have recovered from this one they will come again. So we focus on what we can control. The list above are all things you can control and most of them you can do this week.
If you need help we are here, I don't mind if you book a free strategy call just to discuss the stuff above. Just do something, don't let it just happen to you.
Finally, and this will seem counterintuitive. Serve your clients better than ever before and find ways to do extra when you can. You will be amazed how your business grows, thrives even during difficult times.
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