In a world of uncertainty, it's easy to feel overwhelmed by the constant stream of news about rising costs and falling investment balances. But amidst the chaos, there are areas where we can exert some control, which can help both our bank balance and our mental wellbeing. Here are five key areas to focus on:
Food Preparation:
See AlsoHow to Build Wealth: A Guide for Women in Their 40sShould You Pay Off Your Mortgage or Save for Retirement? Susan's Expert Advice- The Issue: Fresh food prices are likely to rise due to the import of a key fertiliser, urea, through the Strait of Hormuz. Vegetables, in particular, may be affected within their 90-day growing cycle.
- Solution: Start preparing your food budget now. Buy seasonal produce, which is cheaper and often requires less fertiliser. Swap to frozen or canned food when appropriate, as these are often picked in peak season and stored cheaply.
- Commentary: Growing your own herbs and leafy greens can be a cost-effective solution, even with limited space. This empowers individuals to take control of their food sources and reduce reliance on potentially volatile markets.
Stockpiling Staples:
- The Issue: Products like wheat, which rely heavily on fertiliser, could become more expensive due to the war in Iran and increased transport costs. Staples like bread and flour may be impacted.
- Solution: Keep a small buffer of staples like flour at home. Reduce food waste by using bread crusts for croutons or crumbed meat. This simple practice can help individuals weather potential price hikes.
- Commentary: While panic buying is not advised, being mindful of staple food prices and having a small reserve can provide a sense of security during times of uncertainty.
KiwiSaver Management:
- The Issue: The war in Iran can impact the sharemarket, affecting KiwiSaver investments. It's essential to align your KiwiSaver with your financial goals and time horizon.
- Solution: EnableMe financial coach Kristin Sutherland suggests simple rules of thumb. For long-term goals (10+ years), choose growth funds. For shorter-term goals (2-5 years), opt for balanced funds. For immediate needs, consider conservative funds.
- Commentary: By tailoring your KiwiSaver strategy to your personal circumstances, you can make informed decisions that align with your financial aspirations, rather than reacting to short-term market fluctuations.
Optimizing Gas Consumption:
- The Issue: Petrol prices are rising, and experts predict shortages in the near future. This may lead to car-free days and remote work.
- Solution: Use apps like Gaspy or Petrol Spy NZ to find the cheapest petrol stations in your area. Fill up earlier in the week when prices are typically lower. Remove unnecessary weight from your car and ensure proper tyre pressure.
- Commentary: Simple actions like these can significantly reduce fuel costs and provide a sense of control over a critical aspect of daily life.
Political Engagement:
- The Issue: While global politics is beyond our control, local political engagement can make a difference. Issues like electric vehicle subsidies and solar power can be influenced by individual voices.
- Solution: Contact your local MP via email to express your concerns and priorities. This can be an effective way to influence policy decisions that impact your community.
- Commentary: By taking a proactive approach to local politics, individuals can contribute to a more sustainable and resilient future, even in the face of global challenges.
In conclusion, while we may not be able to control global events, focusing on these five areas can empower us to take charge of our financial wellbeing and overall resilience during uncertain times.
