What About Inflation?

Yves SchoofFinance

You would need to be living under a rock, if you haven’t heard the word ‘inflation’ about 100 times per day in the last couple of weeks.

Financial authorities around the world are fighting to keep the rising cost of living under control, all the while the general public is coming to grips with the fact that their dollars are worth less every day. In addition to that, investment markets have also been rattled, with various markets now displaying significant losses.

So what should you make of all of this and how can you manage your personal financial situation?

Let’s explore a few strategies:

 

  • It’s a cliché, but it pays to shop around

Many of us are still paying too much for essential goods and services, which might be due to the fact that you are time-poor or simply don’t have an interest in looking for ways to save money.

However, you don’t need to everything yourself. Your mortgage will be one of your biggest monthly commitments, and with rising interest rates, it would be worth exploring your options with a mortgage broker.

Insurances also typically make up a huge chunk of your budget, so again it pays to shop around for home/car insurance, as well as business insurance and life insurance. Many income protection policy premiums have risen well over 50% in the last 2 years for example.

Read more here: 3 Practical tips to manage the rising cost of living

 

  • Can you increase your income?

If you are in private practice there might be some scope to increase your fees, as there will be cost and wage pressures within your practice as well.

Some medical/dental practices might suffer a reduction in income as well though, as the general public starts to re-evaluate their priorities and maybe cancel or postpone their planned procedures.

 

  • Focus on the essentials

Now is a great time to reassess your priorities and revisit those discretionary expenses which don’t really add value to your life. It might be worth going through your credit card statements and highlighting expenses that you could easily do without.

 

  • Don’t panic

Most medical professionals should be able to absorb these rising costs with the aforementioned strategies, and we hope that inflation can be brought under control fairly quickly.

You also shouldn’t make any rash decisions when it comes to your investments, as the danger is that you will be locking in losses, which you may never recover from.

 

It is important you seek financial and tax advice before making any important decisions, and now is the best time to be establishing a solid financial plan.

Please feel free to contact us if you would like to discuss.

Yves Schoof
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Yves Schoof

Author | Specialist Adviser for Medical Specialists and Surgeons at Affluence Private Wealth
I specialise in managing and coordinating the financial affairs of medical professionals and have been recognised as one of the best financial planners in Australia. I am a Certified Financial Planner and member of the Financial Planning Association of Australia.

As I understand your time is extremely valuable and scarce, I am able to offer flexible meetings times, including outside business hours and during the weekend. I can even come and meet you somewhere convenient, or talk via videoconference on Skype.

My first consultation is free. I allocate up to 90 minutes to discuss your personal circumstances and to establish how I may best assist you. Where you already have an existing adviser, I would be happy to offer a second opinion. I always quote a fixed dollar fee before we start working together.

Please contact me on yves@affluenceprivate.com.au or call me direct on 0432 885 295. You can follow me on Twitter @YvesSchoof or connect with me on LinkedIn to receive new articles.

DISCLAIMER
Yves Schoof and Affluence Private Wealth are Authorised Representatives of Synchron, AFS Licence No. 243313. 

The information posted is intended to be general in nature and is not personal financial product advice. It does not take into account your objectives, financial situation or needs.
Before acting on any information, you should consider the appropriateness of the information provided and the nature of the relevant financial product having regard to your objectives, financial situation and needs. In particular, you should seek independent financial advice and read the relevant product disclosure statement (PDS) or other offer document prior to making a decision.
Yves Schoof
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