How is the cost of living crisis shaping daily decisions?
The latest news from Cafestudy
Posted by: Caféstudy
25th Jun 2024 01:35pm
Recent discussions among Cafestudy members have highlighted the significant impact of the current cost of living crisis on Australian households. With rising prices across essential goods and services, many Australians are finding themselves forced to adopt new strategies to manage their finances and adjust their lifestyles. The areas hit hardest by price increases include groceries, utilities, fuel, and housing costs.
"The main cost to me is the cost of insurances on my car and on the house being retired these are of concern, the second is price of fuel and groceries."
"We finished building our new home right before interest rates started rising, we moved in and they then rose 8 months in a row."
In response to these financial pressures, Australians are employing various coping mechanisms with many turning to more strategic shopping habits.
"I check supermarket catalogues weekly and go to wherever is the cheapest for items that are on my shopping list."
"Preparing more home cooked meals and less take aways. Using less of products purchased trying to make them last."
Cutting back on non-essential expenditures has become a common strategy among Australians. Many have reported reducing or eliminating holidays, dining out less frequently, and being more conservative with their grocery shopping habits. Some have even turned to alternative income sources, 'side hustles' and second jobs to supplement their budgets for essentials like food and bills. This was especially prevalent with those on fixed incomes such as pensions.
Energy conservation efforts have also increased, with many being more conscious of their utility usage. Strategies include setting heaters to lower temperatures during cold nights to reduce gas bills. Additionally, there's a growing trend towards purchasing second-hand items and adopting a DIY approach to various tasks, further helping to stretch tight budgets and reduce overall household expenses.
However, the impact of these financial strains goes beyond just monetary concerns. Many Australians are experiencing social and emotional repercussions.
"I don't invite people over as I can't afford to feed them. We sit in our house 24/7 and never have take aways. I don't accept wedding or birthday invitations as I can't afford a present or clothes or transport. I have become a recluse."
These insights reveal a nation grappling with significant financial challenges, forcing many to reassess their lifestyle choices and priorities. The long-term implications of these changes on Australian society remain to be seen.
What are your thoughts? How has the cost of living crisis affected your lifestyle? Are the coping strategies you've adopted sustainable in the long term? Share your experiences and perspectives on this topical and pressing issue in the comments below.
Comments 9
Nicola32636
Struggling to afford anything just do what I can but go with out many basics daily
musicmum
I am trying to grow some veggies and herbs, saves me a lot because I buy organic. I also sell on ebay things I don't need. I buy in bulk for my pantry. So while we all scrimp and scrounge, the billionaires have got richer. Why is the cost of living effecting the world? Because of greed and the transfer of wealth. Buy locally where you can direct from growers. Stop feeding the machine buying packaged food, eat fresh.
Zanyt
We have started growing our own vegetables and fruit as we are lucky to have a backyard that has enough room to put in some garden beds. I am cooking more at home and we are planning our meals every week so nothing goes to waste. I look around for specials every week on groceries and only buy fresh fruit and vegetables that are in season.
nanone
Being on a fixed income with the high cost of living has had a major effect on what i spend my money on. We don't do takeout or have any streaming services, changed our insurance to 3rd party only for the car and only buy what we need as far as food goes. I do have a small vegetable garden which has helped and always look around for specials on products I do need. I know there are people out there that are doing it much tougher than me but I worked all my life, paid my taxes and saved so I could retired and do things that I enjoy but unfortunately my money doesn't stretch far enough because of the rising costs.
Keerah1
I was affected by the April 6th Floods 2024. There were 5 cars parked in our complex. ALL were right off. So the money I received on my car insurance I paid my electricity bill till Sept 2024, my rent is 3 weeks ahead. I’m fortunate I can pay petrol each week on my NEW CAR, basic groceries and home before dark at 5pm here in NSW. So I truly feel for those out there doing it tough. And hope everything works out 😇😇😇
Ziah
Down to one meal a day most days. Stretching medication and suffering because of it. Not turning on the heater even though it's freezing at night. Showering only when I have to leave the house. Watering down shampoo/bodywash, only using conditioner once a week, watering down dishwashing liquid, using the barest minimum washing powder and the cheapest possible softener (mostly vinegar except on clothes that need to be soft and smell nice). Drink nothing but water and one coffee a day. Never eat out or get takeout at all. Put off car service and essential house repairs as there's no money. Put off doctor's visits because quite frankly, who can afford $100 for a five minute consultation? Dentist is long gone. Mental health help is not available at any cost. Never going anywhere so we don't have to buy fuel from one month to the next. Didn't even get to celebrate our 25th anniversary with friends/family die to the cost. Our mortgage payment literally doubled with all the rate rises, and is now close to 50% of our single income (and my medical costs take close to half of what's left, with no assistance available). No hobbies anymore, no real pleasures at all. Our only luxury is a couple of the cheapest streaming services so we can at least watch tv together. We buy clearance meats and spud shed veg (which is average quality at best) and only the cheapest possible version of the allergy-safe foods we need (or go without).
But we still have a roof overhead - which is something so many people have lost. Homelessness in my area has gone from a small handful on the streets to over a thousand people in tents and sleeping rough in cars around the local area - many are families and older women because there are literally zero homes they can afford and no crisis accommodation whatsoever. Something desperately needs to be done to give all of these people a safe place to sleep at night. This simply should NOT happen in a so-called civilised country!
Timbo
Fortunately I am not as impacted as most by the current steep rise in the cost of living but I certainly remember the Paul Keating era when home loan interest rates went close to 20%. In those times we never ate out, cooked simple, nutritious meals at home all the time. Even now we never go to movies, never pay for entertainment like Netflix, use public transport often when travelling to the city, rarely eat in restaurants or even get takeaway food. We haven't been on a holiday for six years. We don't watch TV. We mostly buy fresh fruit and vegetables (no GST).
The insane energy policies of the current Labor Australian Government is the main thing driving up energy prices here and this is flowing on to the cost of running all businesses and hence is driving up the cost of living. We are rich in energy resources in Australia and should have the lowest energy prices in the world but instead we have the highest while we sell our coal, gas and uranium all around the world to assist other countries to lower their energy costs.
PGS
Few changes, nothing major though.
Stay home over going out if possible.
Once-a-month catch-up lunch is about it.
2023-24 is the first year where the car has done less than 4000km. :(
Emerald
Life gets hard when all the Bills come in mostly one on top of the other, so finances are hard for at least a month with mainly one month with respite. I cook a lot of our Meals rather than getting Take-away and do surveys for extra money. I don't socialise as my hearing is deteriorating and can't afford to anyway