Feeling the pinch?

[korrupt_1]

I consider myself to be financially stable. Always had enough money to do what we want, when we want. We don't live in luxury, but it's a comfortable life. When the car needs a service, we just take it out and get it done - don't really think about it. We want to take a drive to the country and spend a night in a B&B? No problems - just hit the road. Too lazy to cook at home? alright, let's dine out - maybe a bottle of wine with that too...

These days however, we're not doing that as much - if at all. My car was due for a major service 3000km ago, still haven't got it done. We haven't done a B&B night in about a year. Dining out much less now and maybe forgo the bottle of wine. Everything is just costing more these days.

The RBA is putting up rates because inflation is too high. They say we're spending too much. Sure I'm spending more, but I'm not getting more for it. Infact, I KNOW i'm getting less. Basics like fuel and food is cost about 20% more on average. $60 to fill up a tank before, now its closer to $80. Bread use to be $1.90 6 months ago, now it's $2.20. I'm still driving and eating the same - nothing has changed. My pay pack only went up 4% - more than some people's I know of. This is hardly enough to cover the extras.

Yes, we're cutting back on non essentials. Yes, we're budgeting and spending more wisely and yes, we're feeling the pinch.

I just feel for those families who were already struggling, they must be doing it even tougher now.

 

[prawn_86]

Personally as a student, i have to say i havn't noticed it that much.

At the start of the year we increased our food budget 20% because food prices have gone up a lot. However this increase has had very little affect on us. We buy heaps nice food and could afford to cut back a lot if we had too.

Fuel: well i drive as little as possible so spend about $20 - 30 per month on fuel, and i now buy premium fuel for my car, because at these prices 5c a litre in % terms makes very little difference.

Both my partners (full time) and my (casual) wages have increased by about 10% in the last year so that pretty much evens things out for us...

 

[Bomba]

I havent felt the pinch, but my wife and i have just bought a house, so as soon as the loan repayments kick in i am sure i will be feeling it.

 

[Julia]

I agree, Korrupt. Not exactly doing it tough, but, as you say, the same amount of money is buying a lot less.

Just yesterday I bought a 1kg yoghurt (generic brand). Buy the same every week. Yesterday the price had gone from $3.69 to $3.99. That's just one small example of the level of price rises in pretty much everything.

Electricity and water have also gone up.
And don't even start to comment on private health insurance!

Just so difficult for people on low incomes. Not too surprising that pensioners are getting antsy about $273 a week.

 

[Bomba]

the price of rice has risen approx 50% over the last few months.

 

[gfresh]

Sorry, but no..

I've started to adapt, which is the key when things appear to be changing for the worse.

In the last 6 months I have paid back all debts.. paid off a personal loan for a car out early, paid off credit cards. I saw several months ago (and read many good thoughts who are a bit more experienced) that this credit crunch would lead to large scale rises in credit costs, and therefore it was a good time to be scaling back before it gets much worse.

This I've done, and refuse to take out any new large purchases or further ongoing commitments, that are always tempting, but now isn't the time. These are the extra $20-100 a week that add up significantly over time.

I could do with a new car for instance, but I refuse to buy one on credit at current rates. Other things over time I'll probably be a bit more conservative with.

I guess things have changed, but by taking appropriate action to change things, it hasn't hurt too much so far (for me anyhow). It could get much worse though, I don't think we've seen the worst. At the moment, at least most people are employed. In fact, we just hired somebody today for a new position.

 

[xyzedarteerf]

yes definitely feeling the pinch, milk prices are fluctuating like petrol.

Pura 3 litre for instance goes up from $4.99 - $5.50 during the week.

the grocery belt is getting tighter by the month, i have observed that the long queues at the check out has changed from people with full trolley's to people buying 3 - 6 items at the express checkout.

I spoke to a friend who owns one of those noodle takeaway shops he said business is really bad, people are buying less takeaway food, personally I have been eating less takeaway food so on the upside starting to cook healthier food.

 

[tech/a]

Well its not going to get any better anytime soon.

As an employer wages in the building industry are just rocketting,for good people.
Cost of production is just the same rising at an alarming rate.
So fast infact that Rise and Fall clauses are now being written into contracts.

Demand is still strong in the commercial sector but domestic is slowing.
This will cause builders and associated businesses to crunch prices at a time where spiralling production and materials prices suggest the opposite should be happening.

Pretty soon (infact latest figures bare this even now) un employment will begin to bite.

Regardless of your situation running lean and mean is prudent.
Gfresh seems to be on the right track.

 

[agro]

only on the alcopop drinks which have increased in price

 

[Rainmaker2000]

I too feel for the Aussies with relatively fixed incomes and low incomes who are getting squeezed.

All I can say is apportion money to things that matter.

Just on 'the essentials,' if anyone's interesting in my two cents, I buy fruit, veg and meat from local markets. This is not actually a price driven exercise but more quality driven......I have found however, as costs have gone up, the market sellers don't have as much bargaining power to pass it on as Woolies who I've observed have been absolutely brutal in passing the costs on

Another quality driven thing....we make our own bread with 5 minutes work in the bread maker........whatever crap I put into my body in between times, I know I'm in the 3% of the population eating bread with substance....and for 60 cents a loaf.

I realise I'm in the minority, but with the essentails, they are cheaper and better up the retail chain

 

[mrkmr]

Cost of living in Aust is very high now. Im staying in Singapore at the moment and $10 will feed you for the entire day easy.

Where else back home it might buy me a kebab and a drink if im lucky.

The interest rates here are very low as well 2-3%. It seems banks are trying to get ppl to loan out as much as possible because they cant stop people from depositing their money where and have to pay them out the 2% interest on their savings account.

Save your AUD for a holiday! You d be surprised how much longer it lasts overseas. Probably not europe though..

 

[Julia]

Cost of living in Aust is very high now. Im staying in Singapore at the moment and $10 will feed you for the entire day easy.

Where else back home it might buy me a kebab and a drink if im lucky.

The interest rates here are very low as well 2-3%. It seems banks are trying to get ppl to loan out as much as possible because they cant stop people from depositing their money where and have to pay them out the 2% interest on their savings account.

Save your AUD for a holiday! You d be surprised how much longer it lasts overseas. Probably not europe though..

That's really interesting, mrkmr. Can you say why there is such a difference between Oz and Singapore?

 

[arae]

I hear you Mrkmr.

My home is Jakarta and the cost of living gap between here and Australia seems to be exponential of late.

I head back to Sydney every 6 months and it's just the last 2 trips when it's really hit me, just how damn expensive Australia has become.

Simple example; my wife eats Indo Mie noodles. In Jakarta, 12c a packet. In Sydney, $2.30! Now there's a business venture...

My salary in Jakarta is much the same as I would earn in Australia. Yet, the quality of life I can afford here is far superior than I could afford in Oz.

Occasionally, I'd jump on to SEEK and browse through current salaries in Australia. I was initially surprised to see how much they'd increased.Then I'd go back to visit and see just how little that actually buys.

Just my thoughts...

 

[habs]

i dont know about other places but unleaded in sydney cracked 1.60 a litre today... no doubt our friends in NZ are over the $2 mark by now...

 

[It's Snake Pliskin]

Prices for food are going up everywhere not just Australia. Learn to stop spending and make your teabags last for example. 10 cups from one bag is doable.

 

[MRC & Co]

I too feel sorry for those living close to the poverty line.

I do not get why people on this forum gripe about petrol prices at the pump or if general prices are being pushed higher due to higher oil prices?

Why not just hedge? Isn't that the point of being here, to be in control of your finances.........

You can trade the QM (Mini-crude oil contract) or if your family is not large enough, stocks or perhaps an ETF......

 

[Kauri]

I enjoy na slice or two of cheese with mynplonk ... by the way.. ((or BTW)..[ in modern speak])... cheese is and has been my barometer for inflatoion since way bac when... and I am now lookin for the cheese specials at Garden Shaty regularly now... aahhh well...
Cheers
.............kauro

 

[Whiskers]

I enjoy na slice or two of cheese with mynplonk ... by the way.. ((or BTW)..[ in modern speak])... cheese is and has been my barometer for inflatoion since way bac when... and I am now lookin for the cheese specials at Garden Shaty regularly now... aahhh well...
Cheers
.............kauro

Yes, I'm finding it tough too.

A year ago I would just mulch any excess bananas from my back yard garden or let the birds and possums have them.

Well, the other night I got out in the dark to fight off a damn possum from my bananas.

Now, I have two bunches of ripe bananas hung up on my verandah and eating bananas for snacks, banana on toast for brekky, banana on toast for dinner, banana and custard for desert, rather than waste good food.

But damned if my damn cats will start eating damn bananas to save me some damn cat food... so I can afford a bottle of red or a double hops more often.

Damn selfish, inconsiderate little xxxx felines

I'm planting up a variety of veges again from seed scavenged from bought fruit and veg where possible and also took the liberty earlier of stocking up for a rainy (broke) day. I now have 3 cans of baked beans, plenty of (damper) flour and powdered milk in my cupboard.

 

[Sean K]

I don't have a car. No need.
A bus anywhere costs 50c.
A 30min taxi ride costs $2.
A three coause meal is $3 at a local restaurant.
A loaf of bread is 75c.
A bottle of good rum is $5.

Move to Peru people.

 

[Whiskers]

I don't have a car. No need.
A bus anywhere costs 50c.
A 30min taxi ride costs $2.
A three coause meal is $3 at a local restaurant.
A loaf of bread is 75c.
A bottle of good rum is $5.

Move to Peru people.

Wow I could live with those prices.

Cheapest pub meal I've seen lately was $11.50 lamb roast special, but mostly $15 for one course, more like $20 at Sizzlers, but I've been known to blow $40 there.

Last time I got a taxi they wanted $5 just to open the door.

I buy a certain nice generic bread just over $2, or about $1.20 if I catch some marked down near closing time. I missed out the other day and was faced with Brand names around $4.

Hmm... can you lend me the fare over there, kennas!