An article that appeared in our school organ inspired this week’s post. It was penned by an erstwhile feature editor who was also a long time classmate. Her piece was titled ‘Fiscal Crisis na kasi’. This roughly translates to ‘Because it’s Fiscal Crisis’. The post took a humorous look into the students’ saving skills as a result of the coming recession. The prognosis wasn’t good. Regardless, at the moment, Australia is in the grip of a cost of living (COL) crisis. Grocery and produce prices have skyrocketed. Rent and taxes have gone bonkers. Power bills are soaring. Thai restaurants are offering half the servings at the same price for their so-called lunch specials. Mini burritos now come with just two spoonfuls of chicken. This reminded me of a popular fast food chain in the Philippines. They take some chips and weigh it first before serving them. This cost cutting measure began at around the same time as the aforementioned ‘Great Depression’.
Course Trouble
The rise and rise of uni course fees has been brought to my attention. I believe that this is a good starting point when discussing the COL turn. After all, for many aspirants, uni diplomas are the ‘keys to the kingdom’. Since I finished my degrees, the total fees have more than trebled. It now costs over a hundred thousand big ones for many undergraduate courses.
Inflation is a key term that’s been bandied around. You don’t need to be an economist to know that the latter and soaring prices go hand in hand. Inflation, together with interest rates, are the two pillars of a country’s economic standing. If you have those two under control, this will prove bullish for your credit rating and borrowing power.
Nomads
The COL situation has seen everyday Aussies capitulate and end up homeless. If they’re not on the streets, they could be found in makeshift houses like cars, caravans, and tents. As expected, they have to cut down on essentials and skip meals. They shiver through winter nights when the mercury hovers near five degrees. Some have even found refuge near beaches where they have to contend with the blustery conditions.
Local communities have addressed the issue by offering free meals to the needy. Of course, this has been going on for a while. Now, more than ever, our less fortunate brethren need a helping hand.
Why have my compatriots resorted to ‘Nomadland’? As said earlier, rent has simple gone bananas. It was already out of reach but the demand, wholesale rise in property value, and inflation, have seen our pricing reach the top of the table. Three hundred bucks a week won’t even get you a decent studio apartment.
‘Downsizing’
It’s not just rent. Vegetables have seen a markup, so have fish and poultry. In the next few months, eggs are marked to inflate. Recently, I had brunch at the food court. I ordered a small plate with rice and two choices. I carried on eating, until my companion told me that my plate was quite ‘miniature’. I agreed.
‘This was quite a bit tinier than what they used to sell’.
‘I guess that’s the smallest they could find,’ I added. ‘Otherwise, if there was a mini saucer they would’ve nabbed that. Should be cheaper too’.
I made a mental note to try other places in that food court.
Some food brands have likewise opted to downsize, with others doing so before COVID. A popular Aussie chocolate brand reduced their blocks by about ten percent. Another homegrown chips label had cut down their quantity by up to twenty percent. For us consumers, seeing the magnitude of inflation is easy to spot. Whereas you would get three grocery bags before, nowadays, it would only be two for the same price.
$$$
You would have to be a savvy shopper to stretch your $$. This means cutting down on luxuries. No more jaunts to Bali. Airfares and package holidays are the biggest dollar busters out there. Opt instead for an interstate trip if you get a sudden case of wanderlust. Limit your time spent at the cinema. Minimise eating out. Cut down on your comfort food. Curtail unnecessary expenses such as online and window shopping. Feed your furry critter twice a day instead of thrice. Bathe them once a week instead of twice. Any savings are good.
If you tend to read books (like yours truly), try to get as much out of the library as possible. Do your utmost to limit book buying. Even if you get a good price online, it’s still another debit on your ledger. If you couldn’t wait, opt for the ebook version or try a second hand store. Since you’re only going to read it once, purchasing a new copy seems like overkill.
Cheap lah
Reevaluate your priorities. Even in the supermarket, you need to screen which items are worth buying. You can’t just chuck ‘em all in like it is in cartoons. Make sure that every item is worthy as every cent counts. You could still take home a healthy haul without breaking the bank. Later, you’ll realise that there’s a lot of stuff that you don’t really need. For best results, you should have a weekly budget and stick to it.
If you want the cheapest produce, Paddy’s Markets is the place to go. A few years past, sellers were hawking one dollar clusters. They cheapened their prices so that they’d go home without their loads of veggies. Two years ago, we visited said bazaar. Gone were the one dollar offers. A huge selection of shops have folded up. In the age of COVID, it was hard to compete with online grocers. Though they were basement priced, they weren’t as convenient as their online competitors.
Credit
Aside from food, other utilities, and rent, credit cards are another huge factor in the crisis. While having a line of credit could be handy, spending within your means is crucial. Some people splurge today but forget about tomorrow’s repercussions. It’s not only credit cards but buy now pay later alternatives. Like travel, be shrewd about your purchases. Ask yourself if this is really warranted or just a whim. It’ll save you from drowning later on. Don’t get carried away by low fees, massive rewards points, or zero balance transfer fees. At the end of the day, you should be in control of your finances.
Shrinking Collars
Meanwhile, a few weeks ago, I purchased this grey branded polo. I bought it from a preeminent store and the brand was one of my faves. Upon closer inspection, I noticed that the collar was smaller. I measured a similar polo from the same brand that I bought in 2020. The new collar was a third smaller than the former. The updated release though was dearer. Browsing their range online, I surmised that this was their new normal.
To show you just how ridiculous the crisis has been, allow me to proffer an example. A few days ago, a leading supermarket ran a promo. They were hawking an extra five percent value on their gift cards. Shoppers pounced on this as though it were FIFTY percent. I guess anything with $$$ savings couldn’t be bad.
