Aucklanders are freeee (to smile?)
We are 80 weeks deep and recently I have been getting some amazing feedback. It is great to see and hear so many people taking action that is improving their situation - keep it up, love it!
?Well Aucklanders, how happy are you? You can finally get out of jail and get around the country.
For some of you outside of Auckland, you are probably keen to tune straight out. JAFAS and all that.
Fair enough, I’ve come from a small town and I tell you what, if you smile at some Aucklanders like you would in a small town (i.e. being friendly), they look at you like you’ve given them COVID.
Some?of them are probably loving the fact that they have to wear a mask and don’t need to show any emotion but anyway we aren’t just here to beat up on the 09ers.
We are talking about how important it is for the country to be moving freely and what this leads to.
Within a couple of hours of border announcements, I had flights locked in to go to Mt Maunganui to go down and complete some work for the day. Here are?a few costs that pop straight up when we all need to travel:
By the time we are done for the day, this will mean money flowing through the economy and a happy business owner with clarity for their business in 2022.
Outside of business, people all over the country will be booking travel and trips that they haven’t wanted to do for fear it would be a waste of time. (PROTIP: only book travel arrangements that guarantee a refund or have a policy around cancellations).
People need certainty and without it, people struggle to make decisions.
People don’t make decisions when they don’t have all of the information they need to make a decision. If you’re ever struggling with a financial decision, you can always ask yourself ‘what information do I need to make a decision?’.?
That is what you need to go and find the answer to, not to ‘think about it’. What people are saying when they say they will ‘think about it’ is that they don’t have all of the information they need to make a decision.
Now that we have the information that the borders will be open domestically, more people can make decisions.
There will be a lot of pent-up demand all over the country that is about to be spent in the economy.
This effectively speeds up the?velocity of money. What the hell is that you ask?
It is a measure of the number of times that money is used to purchase goods and services within a certain time period.?
This is important as the speed of money exchange is one of the variables that determine inflation.?
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We all know that we have plenty of inflation and this pent-up demand could really get Kiwis spending and spending quickly over the summer months - making the most of their freedom, just in case it gets taken away from us again.
Add the mad Christmas rush to this and we are going to see some serious cash moving through the economy. More money chasing fewer goods!
Don’t make the mistake of searching for Christmas presents too late as you might be relying on Santa to bring them to you instead!
I would suggest getting any Christmas shopping done ASAP in order that you don't miss out on getting the goods to your door before the big day.
For some of you with kids, you may notice that toys are increasing in price at 30% at the moment. You might want to protect yourself from further price increases by getting 2022 birthday presents or Christmas presents early.
?Plenty for us all to think about as it doesn't look like inflation is leaving us for a while.
Have a good weekend,
Luke
P.s.?we are getting closer to?5,000 subscribers?of Keep The Change. When we get there,?I am going to give one lucky reader a?$500 investment. Share this with a friend so they get learning.
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Did you know:?Since March 2020, a drop in borrowing costs has put around?$380m?back into households’ wallets?each quarter.?We are now heading the other way with rising interest rates.
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