Looking at the High Inflationary Climate/Economy From Another Lens

You can slap me in the face on this article if you really want to. I have already written an article on Vocal Media, on some effective ways in which you can beat inflation; yet as much as it could be a little too much to swallow for some...you can still find your joie de vivre in a high inflationary climate. A couple of these ideas might resonate, or they might not. They could also ruffle your feathers. Take it or leave it as always. Please note, this is not solely an article on saving money, budgeting, or in making more money. I will share with you a handful of strategies in which you can take advantage of in these strange economic and high inflationary times, so that when the economy recovers (it will, at some point); you will find yourself in a happier position in life.

It could come across as being a bit rich when I share that I am in a wonderful place where I am not too worried about rising inflation (and interest) rates. Having these tools up my arsenal is helping immensely, and consider this a way of passing the torch, as sharing is caring after all. Truth be known, even though inflation is not bothering yours truly as much as it should; I am still affected by it, as much as the other person is. I appreciate that it can also be a bit rich to write an article on seeing the high inflationary climate from another perspective, considering that I am acutely aware that there are an abundance of smart individuals out there who are currently homeless with full-time jobs, while for others - forget that the avocado on top even exists; merely a piece of toast is considered a "luxury" nowadays for many.

It is not difficult to notice that a $5 note needs to be handed over for a small cappuccino, much the same that the same standard shopping bag carries around 25% less groceries for the same price of such goods a mere few months prior. There are no surprises that the current rate of inflation in the US is 8.2%, according to US Labor Department data. In the UK (not that political instability may have added more fuel to an already blazing fire); the current rate of inflation is 13.2%, according to the CPIH goods inflation rate. In Australia, the ABS publish the current inflation rate at 7.3% - again, as at the time of publication of this article. The figures in my home country are also on the upwards trend.

The first tip that yours truly can share in helping you change your perspective around these high rates of inflation, combined with high interest rates is that the economy comes in waves and cycles - just like everything in life. There is a time to be active and to enjoy that yang energy, while there is also a time to slow down, and enjoy the opposite yin and resting energies. That tells you that this climate is not permanent. I do not know how long this cycle will last for, yet I can assure you that we will not be living in dark economic times forever.

It is important to not put your life on hold. If you have goals and dreams that you wish to see come to fruition...you might have to work a bit harder on accomplishing them. The beauty about living in a high inflationary and high interest rate climate is that it is helping some of us humans in becoming more grounded, and therefore not make any rash business, health, family, work and other major life decisions on the cusp of excitement. It can also pave as an incentive for people to save more, to ultimately invest and/or have some peace of mind in case of emergencies.

I am not an advocate for going without, yet David Bach's Latte Factor is also an individuals best friend in a high inflationary climate. It is likened to skimming the fat. You can still have your coffee (your lattes) yet skipping just one latte a week, and using that money to invest makes the world of difference, even if we are only talking about some spare change here. And perhaps being a few kilos lighter. A win/win.

This high inflationary climate may inspire some people to study and learn more about how our finances (even the actual financial and banking system) actually works. There are a multitude of different strategies out there, from the Budget Barista, who worked as a Starbucks Barista for eight years, of who has discovered the art of frugality while living on a baristas wage for that lengthy period of time. Budget Barista also teaches people to make their own coffee (for example), and then use that difference to invest, and/or buy other things, so to keep pace with rising inflation.

It does not matter where you came from, but rather who you are becoming. Having personally been a barista in the past; when you move on from that and have a job and/or business that pays much greater; solid foundations have been laid to stick to that budget, with the luxury of having more cash left over, from a little bit to so much more each week. This is where (for example) yours truly ended up buying six $1K parcels of Vanguard index trackers while working at a full-time temporary job a couple of months ago, all while having to fund a vacant investment property that was on the sales market simultaneously. This investment in some more Vanguard index trackers equated to six weeks of earnings in that role after taxation. I am not sharing this to impress you, but rather to impress upon you, that despite running a successful part-time business, while committing to a temporary job in the Government full-time; this was all possible due to living like I did when I was a barista for about 14 months a little while ago.

Lifestyle inflation (also known as lifestyle creep) needs to not become a thing, whereby it is normal to spend in line with your earnings. In turn, as your earnings increase, so do your expenses if you are not careful. It is ok to have an odd upgrade, yet this leads onto the next point.

This next strategy on looking at high inflationary times from another lens all boils down to seeing everything that you buy as an investment. I appreciate that this idea could ruffle a few feathers, yet it makes an abundance of sense. In other words, when you buy anything; from a cup of coffee, to a major purchase, where you are not buying an actual investment (for example, some shares/stocks) the perspective on what you are buying transforms. You do not look at your groceries the same way. You do not look anything the same way. At best, you will stick to your shopping list, and not give into the temptation of impulse buying. It only takes a few extra seconds out of your busy life to view every purchase you make as an investment. Having done this personally, my shopping trolley has a few less chocolate bars and other treats in it. Therefore with the consumption of these treats; better quality products are usually purchased, combined with more healthier foods, even if they cost more. Things will last longer, including chocolate. Cheap will really be nasty. Through this inflation reframing strategy, things will last longer, and in order to save some money, you would (in most cases) be inspired to seek out alternative options without getting rid of your treats and joy altogether.

In a high inflationary climate, it is rare to find golden opportunities that give you more bang for your buck, yet the great news is that such golden opportunities are still out there. There are meetup groups where you can join, for example a walking group where you might discover a new walking trail, all the while enjoying some company. Such activities are way cheaper than a casual visit at the gym, all the while you are still getting some much needed exercise in. If you wish to sharpen the saw with some quality personal development (no different to reading this article for free - unless you want to tip me, so you do not need to reinvent this wheel) the quality of some YouTube videos on topics such as the law of attraction are second to none at this time. There is a mini-course called Permissionless Apprentice from Visualize Value that is available to study for only $1 US (as at the time of publication of this article), rather than $99 US. And this is not exclusively a Black Friday bargain - again as at the time of writing this. Regardless of where inflation and interest rates are at; we all need to prepare for the future of work, and what life will be like when inflation and interest rates settle down and lower again. Permissionless Apprentice (in my humble opinion) will help us adapt. If not now, when?

"Shoot for the moon. Even if you miss, you'll land among the stars." - Norman Vincent Peale

A common trend that has surfaced from the high inflationary climate is the rise of scammers, of who try all kind of tactics (phishing, smishing, and the like) to con people out of their hard earned funds. I am not sharing this to freak you out; but rather to remind you, and to encourage you to stay on high alert in these times now more than ever; and that is a great habit to ingrain into your psyche. Staying alert in these times will form that natural habit to stay alert to such suspicious activity online for when the times become much better again. In Australia, the Optus and Medibank Private data breaches have really put many people on edge. While you are at it, put a block on your credit reports, and always be vigilant when signing up for a new product or service. Ask the relevant organisation how your personal data will be used, and what their cybersecurity policies are. Yours truly has noticed many unknown phone numbers appearing on my mobile. Do not answer any number that you do not recognise. Reputable organisations will leave a voicemail. Never click on any links in an email or text message either.

In high inflationary times or otherwise; if you make a not so great decision - the outcome is based on your meaning behind that decision. Trust your gut instincts, and if you are led to buy something, or take an appropriate action regardless of the price or opportunity cost missed; you must go ahead and follow that hunch. In high inflationary times, money still needs to be circulated for more of it to flow back to you. Yours truly has heard of circumstances time and again, where people deliberated on the cost of something, and therefore fail to see that cost as an investment. Something then happens to them (karma or otherwise) that takes that same amount of money away from them. These people would have been better off spending that money on something that made them happy at the time, rather than paying for an inopportune result. It is no different knowing when to take a break, so to avoid burn out. If you do not meet your income targets, it is not the end of the world. Would you prefer a loss of income rather than a loss of a client; or worse a law suit for tardiness arising from tiredness/fatigue?

Hello fellow entrepreneurs, I am also speaking to you here.

In great economic times, and in not so great economic times; we all need to work. It is simple reality: great karma comes from enjoying your work. We have to work harder now for the same dough than we all had to a mere 4-5 months ago. Because of this, why not enjoy ourselves in the process? If you are grunting while grinding, you are doing it all wrong. Work can feel like you are as relaxed as you are at the beach. It so can feel like that.

It just goes to show that you have more control than you anticipated in these darker than anticipated times right now. We cannot control exactly how we cope with this high inflationary cycle (extraordinary times ahead, I know), yet we can accept our karma, and therefore influence it in a more positive direction. No different to how I shared As It Was by Harry Styles in an earlier article on beating inflation. Therefore it is only appropriate to share a song by Taylor Swift, from the album called Midnights (aptly called) Karma that was also released in such high inflationary times. Ever so appropriate, and yes, karma can be a relaxing thought right now:

You can now tread your own path in these periods of high inflation. Please go ahead and use what tools and strategies resonate.