Cost of Living: 5 Ways to Take Control of Your Finances & Wellbeing Now

In times of global uncertainty, the feeling of losing control over personal finances can be overwhelming. Rising costs and volatile investment markets are a reality for many, but financial journalist Frances Cook outlines several areas where individuals can proactively manage their financial wellbeing, focusing on what *is* within their power. It’s a strategy built on practical steps, rather than reactive anxiety.

Cook’s advice, shared in a recent series of discussions and articles, centers on a simple premise: when faced with overwhelming external forces, concentrate on tangible actions. This isn’t about ignoring geopolitical events or broader economic trends, but about building resilience through focused, personal financial management. The core message is about regaining a sense of agency in a world that often feels unpredictable.

Preparing for Potential Food Price Increases

One immediate concern is the potential for rising food costs. New Zealand relies on imported urea, a key fertilizer, much of which travels through the Strait of Hormuz – a region currently experiencing heightened geopolitical tension. This supply chain vulnerability could impact the availability and price of fresh produce within approximately 90 days, according to Cook. Proactive preparation, involves adjusting grocery budgets and considering alternatives.

The advice isn’t about hoarding, but about strategic substitution. Cook suggests exploring alternatives to more expensive items, such as using grated apple or flax seeds in place of eggs, oil instead of butter, and coconut milk instead of cream. Padding mince with lentils is another cost-effective strategy, potentially halving the meat content without significantly altering the final dish. This approach requires some experimentation, but building a repertoire of substitutions can provide flexibility when prices fluctuate.

Beyond substitutions, Cook highlights the value of utilizing seasonal produce, which is generally cheaper and requires less fertilizer. Freezing or canning food, when practical, can also support mitigate price increases and reduce waste. Even small-scale home gardening – growing fresh herbs and leafy greens – can offer significant savings.

Stocking Up on Staples and Reducing Waste

The potential for disruption extends beyond fresh produce. Wheat, another staple crop reliant on fertilizer, could also see price increases, impacting the cost of bread and flour. Whereas panic buying isn’t recommended, maintaining a small buffer of essential staples can provide a degree of security.

Crucially, Cook emphasizes minimizing food waste. Utilizing leftovers creatively – perhaps with the assistance of tools like ChatGPT to generate recipe ideas based on available ingredients – can significantly reduce grocery bills. Bread crusts can be repurposed into croutons or breadcrumbs, and careful meal planning can prevent food from spoiling before it’s used.

KiwiSaver: Long-Term Perspective in a Volatile World

The impact of global events extends to investment portfolios, including KiwiSaver. Market fluctuations are inevitable during times of crisis, but Cook stresses that this is a normal part of the investment process. The key is to ensure your KiwiSaver fund aligns with your long-term goals and risk tolerance, and then resist the urge to produce impulsive decisions based on short-term market movements.

EnableMe financial coach Kristin Sutherland offers a simple framework for choosing the appropriate KiwiSaver fund: growth funds for those with a long-term horizon (10+ years), balanced funds for medium-term goals (5-10 years), and conservative funds for shorter-term needs (1-3 years). As Cook discussed on RNZ’s Sunday Morning program, the most crucial thing is to set it and forget it, avoiding the temptation to react to market volatility.

Wringing the Last Out of Fuel Costs

Rising fuel prices are another significant concern. Experts are predicting potential shortages, prompting discussions about reducing reliance on petrol and exploring alternative transportation options. Cook recommends utilizing apps like Gaspy or Petrol Spy NZ to compare prices at different stations and identifying the cheapest days to fill up – often earlier in the week.

Simple measures like removing unnecessary weight from vehicles and maintaining proper tire pressure can also improve fuel efficiency. These small adjustments, while seemingly insignificant, can collectively contribute to substantial savings.

Leveraging the Election Year

Finally, Cook highlights the power of civic engagement. As an election year, this is an opportune moment to voice concerns to local Members of Parliament regarding issues such as electric vehicle subsidies and investments in renewable energy sources. Politicians are responsive to constituent concerns, and collective advocacy can influence policy decisions.

The overarching theme of Cook’s advice is empowerment through action. While acknowledging the challenges posed by global events, she emphasizes the importance of focusing on what individuals can control – their spending habits, investment strategies, and engagement in the political process. This proactive approach not only mitigates financial risks but also fosters a sense of resilience and wellbeing in uncertain times.

You can find more of Frances Cook’s insights on her Substack newsletter, Money Memo, and through her work with Making Cents. She also recently discussed these topics in a Facebook Live video.