If you are one of the lucky people who weren't born into an ultra-rich family, you know the kind with house staff, more cars than drivers, more bathrooms than bedrooms kinda rich, then you are probably feeling the pain from our bloated cost of living. Gas prices are up. Grocery prices are hiking themselves up to the peak of Mount Everest. And the Bank of Canada has raised its rates 3 times so far and economists are predicting another 3 hikes by the end of 2022. Inflation across North America is sitting at an average of 10% no matter what the mainstream tries to tell you. And I'm willing to bet that your income has not gone up to compensate for it.
So if you, like 99.9% of the rest of the world are looking at how you can make positive progress during these times check out our tips below.
Tip #1 - Act like a grown-up!
B-U-D-G-E-T! Let's get real for a moment. When we were teenagers our income was all disposable. The problem is many of us haven't learned that as adults our income is no longer disposable. There are actual responsibilities we need to take care of FIRST -- before we go buy all the things that aren't always necessary. Grown-ups NEED budgets. If you aren't working with a budget you'll have no way to know where your money is going or at what frequency and it will cause you to live with more financial stress than necessary.
Contact us at info@authenticallyalderson.com if you want some resources for creating a budget.
Tip #2 - Feed Yourselves
Canadians spend $27 billion a year on fast food. IF every Canadian spent the same amount it would work out to only $2 per day but the average Canadian, not including children under 15 or adults over age 65 spends on average $23 per week on fast food, take-out, and coffee. Think about how much food you could buy from a grocery store for that $23 instead of the three mocho-choco-latte-fraps you get from your local Starbucks.
"In terms of Fast Food and deep understanding of the culture of fast food, I'm your man." – Bill Gates ... Enough said
Tip #3 - Find the Hidden Leaks
About five years ago when we found ourselves with over $100,000 of consumer debt we had to take a real hard look at how we could accelerate our debt repayment plan. Now, with inflation, and being debt-free outside of our mortgage we are wanting to beef up our savings so we are doing the same exercise. If you don't know where the money is leaking out of your account now is the best time to comb through your credit card and bank statements. Did you forget that you signed up for a subscription streaming service 6 years ago and now you never use it but still continue to pay for it? Cancel all the extra things you don't NEED. $6.99 here, $3.95 there... it all adds up.
Tip #4 - De-clutter
Declutter your life. We're not just talking about all the garbage laying around your living room, but all the stuff you move from place to place but never use. The old clothes you don't wear, the furniture that no longer fits your space or style, the extra tools in the shed you bought for that one project and haven't touched since. All of these items could be sold to generate some extra cash for you to pay bills, invest, or slap down on debt. And while you're at it -- clean out your Inbox. All those sales flyers and alerts coming in don't help if you have a shopping addiction. No Carol, you don't need another pair of shoes even if they are on sale.
Tip #5 - Generate Additional Income
It's 2022 and if you don't have a side gig you are quickly becoming the minority. Gone are the days of Avon ladies knocking on your door, but don't kid yourself by thinking that starting a side hustle is a scam, a pyramid scheme, or beneath you.
"The study, which interviewed almost 2,000 Canadians in full-time employment, found 22 per cent had already turned a hobby into a side hustle, and a further 60 per cent would like to in the future. Of the respondents who had set up a side business, their average take home income (after tax) has increased by $15,430 each year." https://smallbusinessbc.ca/article/more-canadians-turning-to-a-side-hustle-to-boost-income/
Be diligent.
Remember that the Bank of Canada doesn't care about your personal situation when it comes to their decisions to raise interest rates. Neither do the companies raising prices in response to inflation levels not seen since the 1970s. It is YOUR responsibility to adjust your sails so that you can continue on your journey. If you're looking for a guide, some advice, or some additional resources book your FREE 1-1 Coaching call with us, and don't worry, we aren't selling anything. We are here to help!
Comments