Cost of Living: 5 Ways to Take Control of Your Finances & Wellbeing Now
Rising global tensions and potential disruptions to key trade routes are prompting financial experts to advise individuals to focus on areas of personal financial control. Concerns center on potential increases in the cost of living, particularly regarding food and fuel, as geopolitical instability impacts supply chains.
Latest Zealand, heavily reliant on imported fertilizer – specifically urea often transported through the Strait of Hormuz – is bracing for potential impacts on fresh produce prices. Experts suggest that effects could be visible within 90 days, the typical growing cycle for many vegetables. Financial commentator Frances Cook recommends proactive budgeting and considering alternatives to fresh produce.
“If you can start preparing the food budget now, that means you’ve got more wiggle room later, if prices do indeed go up,” Cook stated. She advises incorporating canned or frozen vegetables into shopping lists, noting they are often picked at peak season and stored affordably. Growing herbs and leafy greens at home, even in limited spaces, can too mitigate rising costs.
Beyond produce, staples like wheat, bread, and flour are also vulnerable to price increases due to their reliance on fertilizer and potential disruptions to agricultural operations. While cautioning against panic buying, Cook suggests maintaining a small buffer of essential staples. Reducing food waste through creative repurposing of ingredients – such as freezing bread crusts for croutons – is also highlighted as a cost-saving measure.
The potential for market volatility is also impacting long-term savings plans like KiwiSaver. While acknowledging that market fluctuations are inherent to investment, financial coach Kristin Sutherland emphasizes the importance of aligning KiwiSaver fund choices with individual time horizons.
“If we’re looking at not using the money for 10 years or more… we would go growth,” Sutherland advises. “A shorter timeframe of under 10 years… then balanced. Then if we are thinking we need to use that money anytime soon… then conservative.”
Fuel costs remain a significant concern, with experts predicting potential shortages if the current political climate persists. Price comparison apps like Gaspy and Petrol Spy NZ are recommended to identify the cheapest fuel options, and strategies like removing unnecessary weight from vehicles and maintaining proper tire pressure can improve fuel efficiency. Filling up earlier in the week, particularly on Tuesdays, may also yield savings in some cities.
Cook also points to the upcoming election year as an opportunity for citizens to advocate for policies that address long-term economic vulnerabilities. “You can’t control global politics, but we can all make a little difference in our own corner of the world,” she said, suggesting that contacting local Members of Parliament to express support for initiatives like electric vehicle subsidies or solar power could influence policy decisions.
According to web search results, the First World War cost the British treasury approximately £10 billion, adding £6.5 billion to the national debt. While this historical context doesn’t directly address the current situation, it illustrates the significant financial strain that geopolitical events can place on national economies. The Allies spent an estimated $147 billion (equivalent to $4.5 trillion in 2023 USD) on the war, compared to $61 billion ($1.88 trillion in 2023 USD) spent by the Central Powers.