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Why you have less money than before

by alex brownbill

Does it sometimes feel as though the money you used to have just doesn’t seem to stretch as far?

 

Honestly, I personally think that a lot more families are quietly struggling much more than what they let on. Car payments, childcare and education bills, utilities and other essential services are all either high already or increasing.

 

Poor decisions made years ago can lead to disastrous financial outcomes years later (this is especially the case when talking about multiple car loans, holidays on credit and investment properties purchased with household equity that may have since evaporated).


[img_text_aside style=”1″ image=”https://voyagefinancial.com.au/wp-content/uploads/2017/09/Untitled-design-12.png” image_alignment=”right” headline=”Do%20you%20need%20to%20start%20getting%20your%20finances%20in%20order%3F%3F” alignment=”center”]If you do, it’s totally cool. We’ve got you covered. We’ve put together an online workshop that will show you EXACTLY how to re-imagine and re-engineer your finances from the ground up.  Click here to go to the registration page!

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The thing is, the INCOME that most families bring in isn’t increasing with it. This creates one of three scenarios:

 

  1. You have had a surplus in your income/outgoings, but over time that surplus has been getting smaller and smaller
  2. Your finances are balanced on a knife edge and the reduced surplus has meant that you’re now dipping into savings
  3. You have no cash flow surplus OR savings, and are now surviving on credit cards to top up the budget each month. This scenario has a clear end point, and it’s a terrible one.

 

If you’re in scenario 3, I really feel for you. There was a period where I had to do the same thing during a period of reduced business income. It sucked and was highly stressful. Luckily I had the ability to claw my way out of it. But many aren’t so lucky.

 

Knowing exactly what it’s like to be in that situation is why I’m really passionate about making sure families make the RIGHT decisions  -ones that prevent them from digging a financial hole so deep they can’t get out of it. The flow-on effects are just as devastating – shattered families, divorce, depression, extreme anxiety.

 

Let’s hope interest rates don’t rise too soon (which they won’t) to add fire to that flame!

 

What I find unbelievable is that some organisations are still arguing for the abolition of the minimum wage (I’m looking at you WA Young Libs!). I mean, feel free to take me up on this but it seems that they have absolutely no grasp on the reality of living in the suburbs, trying to raise kids and making ends meet. Maybe nor should they  – I guess they’re in the Young Libs for a reason! (Disclaimer: I WAS once a member of the WAYL. Oh, how things change once you get out into the real world!).

 

Although, many of these members DO end up in positions of power without ever having to leave the comfort of the electoral office. I honestly thought this type of economic doctrine was dead, but clearly some haven’t got the message or been through the (perhaps necessary) cycle of financial discomfort.

 

So, by the reckoning of many experts, you have about 18 months to get your sh*t in order before interest rates start heading up. Also despite federal budget predictions, it doesn’t seem that wages are going to magically start accelerating, so you’re going to have to do the hard yards yourself.

 

Start saving. Start paying down debts. Start investing and start dumping as much cash as you can into your wealth machine (not sure how to do this? Register for our workshop here).


[img_text_aside style=”1″ image=”https://voyagefinancial.com.au/wp-content/uploads/2017/09/Untitled-design-12.png” image_alignment=”right” headline=”Do%20you%20need%20to%20start%20getting%20your%20finances%20in%20order%3F%3F” alignment=”center”]If you do, it’s totally cool. We’ve got you covered. We’ve put together an online workshop that will show you EXACTLY how to re-imagine and re-engineer your finances from the ground up.  Click here to go to the registration page!

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