Budgets, Self-Responsibility & Interest Rates
Self-responsibility and budgets are two words that many people don’t really want to hear in a sentence. They are emotionally charged words akin to diet and gym. They bring up a nuance from within ourselves that in order to improve our lives that we must do the work, and that doing the work is hard. This is how the mind interprets these emotionally charged words, and it is our minds that shape our reality.
For many, the mindset that life goes on and debt is just a part of life allows debt to become a way of life, an acceptance. But the truth is that whilst debt may be a way of life, how you choose to use and view debt and the financial system we are in is entirely up to you. You could consider good debt, bad debt, and be confused by the two, or you could choose to do the work and understand why not all debts are created equal and how to allow debt to work for you.
But herein lies the challenge… your mindset.
Debt is also an emotionally charged word. The way we interpret debt, the way we judge ourselves when we look at our credit scores, or our bank balances and the pressures we place on ourselves via our internal chatter will often have a negative connotation to debt, and in turn our self-worth. The way that the current financial system allows us to reflect upon ourselves when we don’t feel we are doing enough good, or that we should be doing better. Our remaining emotions become so overwhelming that we rarely know where to begin.
That’s the point of the system.
The system has been built in such a way to keep you so busy, so stressed, so locked into a mindset of negative self-worth that you live your life based on numbers of a system that do not reflect the person you are. The truth of you being judged in a system that does not support you, only the economy, is one of the core reasons that this sensation of emotionally charged words like budgets and self-responsibility feels like you have no power to change or the ability to reclaim your power.
But the truth is you do.
You hold all the power.
You have all of the answers.
And you are the only one that can choose to make a better life for you and your family.
In a world where too many people are just waiting to be saved, and where too many people are wanting the easy option, what will you decide to do? Will you choose to rise above in 2023 or go along with the crowd accepting that debt and financial overwhelm is the way forward for you and you should just accept it as the normal way of life?
Many people choose to live their life in financial overwhelm because they feel powerless to change, hesitant or resistant to change, and are stuck in a loop of limited mindset, loud mind chatter, and negative self-worth. In a world where we can have it all, now, and pay for it later… where convenience is key and nothing really matters.
What is convenience and your “way-of-life” truly costing you?
We are here to tell you that being financially irresponsible is not normal and that if you want to be in a better position you can be, but you must choose to be. If you choose to apply yourself you will surprise yourself, we see it time and time again.
Rising interest rates for mortgage holders means big changes, and your mortgage broker may not be able to save you. Do you have a savings goal in place for when your mortgage increases or are you sitting back waiting to be saved?
Cost of living pressures means increase of weekly spending at the check-out and more pressure on your household budget. Are you just sitting back and waiting for things to go back to “normal?”
The truth is that right now if you do not have a budget in place for your cashflow, if you do not have a savings plan and you are a mortgage holder you are heading into troubled waters. The RBA is yet to meet this year and will be meeting in February 2023. What do you think they will do? Increase rates again? Possibly… but the question is, how will you handle more increases in your mortgage when you have already had to endure so much?
Your mortgage broker may not have the answers you seek, especially if you are coming off a 2-year fixed 2% interest rate. Have you even looked at today’s rates and understood how these will affect you, or do you still have your head in the sand?
Do you know what your new rate will be and how this will impact your cashflow?
If not, ACT NOW.
YOUR diligence will become your resilience.
What is your plan?