Late last week I invited my 25,000 subscribers to give thoughts regarding learnings from handling periods in the past of high cost of living increases, such as Kiwi families are experiencing now. Over 450 people replied and I have summarised the results in the pdf at the link below. Many of the responses are reprinted including selected items from the many lists of suggestions that people sent through. Hopefully, there will be something there that will assist those households which are seeing their incomes fail to keep up with recent inflation at 4.9%. Once the rate hits near 6% fairly soon there will be a lot more people seeking to adjust their habits, so feel free to pass the pdf or link onto anyone who might find the suggestions useful.
Note that the results should also be useful for the many young people now denied a mortgage by the government’s Credit Contracts and Consumer Finance Act. Banks demand proof of three months’ ability to curtail spending and the results are replete with ideas for what to target.
Many thanks to those who replied and the document now adds to a small suite of “How to Handle” reports which also cover high-interest rates and staff shortages – available on the Publications page of my website.
How to Handle a High Cost of Living January 2022.pdf (tonyalexander.nz)
Tony Alexander
Independent Economist and Speaker
People can sign up for my free publications here.
