Money’s getting tighter - is your family ready?

There’s big stuff happening behind the scenes in the global economy - and it’s starting to hit closer to home.

Countries like the US, Japan, and even the UK are drowning in debt. Long-term interest rates are climbing. And the world’s biggest bond markets are showing signs of serious stress.

Think of the bond market like the world’s biggest credit card - and it’s maxing out.

Governments borrow money by issuing bonds, and investors lend them money expecting to be paid back with interest. But debt levels are now so high that investors are getting nervous - so they’re demanding higher interest rates for taking a higher risk.

So what? Well, it means borrowing is likely to get more expensive in the future, super fund investments will likely get more volatile (making your super balance bounce around), and families who aren’t prepared could start to feel the squeeze.

The bottom line? The game is changing fast.

So, what can families do?

When money feels tight and the future feels uncertain - that’s when planning matters most.

• Cut back on 'lazy' debt: That's debt that doesn't help grow your income or asset values with the main culprits being credit card, Afterpay and personal loans. Think of it as debt that’s just hanging around, draining your finances, and offering nothing in return for supporting your long-term goals. Start paying it down.

  
  

• Be smart about spending: Want less. Simplify your consumer lifestyle and ask yourself if you really need that shiny new thing. If you do, you do but just cut out the unnecessary stuff. There's something freeing and light that comes with a simple lifestyle.

  
  

• Build a cash buffer: Life is unpredictable, and you need a stash of cash that you can get to quickly if the fridge dies, car breaks down or work dries up. This is your financial safety net. If you don't have one, then you're more likely to fall back on credit cards and loans, which isn't what you want.

We’re helping families prepare for a secure future in uncertain times.

More soon.