Ultimate f*&k inflation guide

Last week the Reserve Bank raised the OCR again. If you want to learn about that, you can in earlier editions. In summary, this rise is designed to continue to get on top of inflation.

What was more important to me last week was the fact that the Reserve Bank said that they expect inflation to be above the targeted rate (1 to 3%) until June 2024.

Let me show you this so that you understand:

To the June quarter of 2021 inflation was 3.3%

To September 2021 it was 4.9%?

To December 2021 it was 5.9%

To March 2022 it was 6.9%

To June 2022 it was 7.3% (we are here)?

To September 2022 it will be above 3%?

To December 2022 it will be above 3%?

To March 2023 it will be above 3%?

To June 2023 it will be above 3%?

To September 2023 it will be above 3%?

To December 2023 it will be above 3%?

To March 2024 it will be above 3%?

To June 2024 it will be above 3%??

We are being told to get ready for another 2 whole years of price rises before this settles down (if it does). Of course, things always change, but if the above doesn’t make you want to do something about your income level and outgoings, I'm not sure what else I can do for you.?

People will spend more time on social media defending their reasoning or belief of why inflation is here, than defending themselves. ‘’It’s a global problem’’ - yeah it’s still a fooking problem! ‘’Oh but this political party…’’ dribble dribble dribble. This type of chat won’t help you or your family.

When I say people can defend themselves, I mean defend their purchasing power.

That’s why today we are going to focus on what we can actually do when it comes to inflation.?

I don’t see any of the economists or financial advisors teaching anyone this…why? Because most of them are employee’s and not entrepreneurs. Few of them know how to make money from scratch. They either write about the market or ride the market.

So take this life-changing lesson from a Chartered Accountant (the most boring of the financial dudes) who has started businesses, runs a million dollar business and advises hundreds of businesses, you don’t need to be an entrepreneur to do this, you just have to take a bit of action and use the tools you don’t even see that are already at your ready.?

Here’s how to do it.

PART A

? Take your income level for the year (say $60,000 as an example) and x by 10%

? You now have your target extra income to ideally earn from outside of your current employment

? Divide this by 12 - this is now your monthly target. I.e. $500 per month of extra income

(Note: if you move from hobby to business you should target 15% as you’ll lose 30% + to tax).

Now we need to find where we are going to get this from?

PART B

? Start by selling something you don’t use on social media to learn the belief that you can make money outside of your job or current income stream

? This helps you get closer to the target of month one and gets your momentum going & belief up

? Every month we need a calendar reminder to track our progress toward our target (brains love progress)

Bonus: do this with a friend to build some accountability

‘’Oh but Luke I don’t know how to sell anything online’’…get this in ya!

PART C

? Facebook marketplace for your item to get you started. Done.

? Now we need to think about what we can offer and to who. Then, we can use this framework:

Think about what you are prepared to do, not what you could do. I.e Yes, you could start any number of businesses but don’t overcomplicate it. Are you prepared to clean your neighbour's house?

? Go to all of your social media accounts and use these 2 frameworks…

1. ‘’I’m looking for [type of person you can help] to help them with [what you can do for them]. Know anyone? DM me’’.

‘’I’m looking for [busy homeowners] to help them with [cleaning their house]. Know anyone? DM me’’.

‘’I’m looking for [students struggling with maths] to help them with [maths tutoring]. Know anyone? DM me’’.

2. ‘’Do you know anyone who needs help with [what you can do for people]? DM me’’.

‘’Do you know anyone who needs help with [a logo for their website]? DM me’’.

‘’Do you know anyone who needs help with [organising their next event]? DM me’’.

? Once you’ve got someone interested, get some extra work / income across the line and then refine the above process.

I guarantee the above 2 frameworks will get someone to reply if you are solving a problem for someone. I.e. giving time back to a busy parent.

Video: https://www.instagram.com/reel/ChjGSs8lTbT/?igshid=N2NmMDY0OWE=

Part D

? This is a little bit extra for experts but I know a lot of you will ignore my advice above about what to offer and want to just sit brainstorming about what you ‘could do’. Here’s a framework to better do that

? What’s your job? Can you do some of this extra on the side? I.e. graphic design. Be mindful of your employer and remember we want to learn to earn

? What's the most exciting part of your day? This is often an insight into where your passion lies. I.e. it could be going to the gym or pilates, not your job

? What browsers do you still have open on your phone? What’s your most visited website(s)?

? Check your search history for the internet and YouTube. What insights are here?

What podcasts don’t you shut up about? How come? What clues are here about your passions?

? Now this is always trickier because you are going deeper but once you figure it out, you can go back to the framework in Part C.

I.e. for a graphic designer who loves the gym.

‘’I’m looking for [Personal Trainers] to help them with [design for their website/instagram]. Know anyone? DM me’’.

Video: https://www.instagram.com/reel/ChlyGgvF3iS/?igshid=N2NmMDY0OWE=

Business owners

You’re in the firing line too because you are going to be who the staff come to and say ‘hey ahh so my friend said they got a pay rise because of inflation, so yeah, give me a pay rise?’.

Remember all the people above online defending their favourite political allegiance or reason why inflation is here? They’ll be the first ones asking you for a pay rise!?

If you don’t know your numbers & margins, you’re at huge risk of your business profitability declining or raising prices too often that your customers go looking elsewhere.

Simply giving people a pay rise to combat inflation doesn’t teach anyone anything. Sure, we all thought it was a good idea in the short term as we were sold that this was ‘transitory’. BUT teaching people skills is way more valuable for them.

You can use the above framework to teach your staff new tools to increase or improve their income.

Video: https://www.instagram.com/reel/ChihMcbrKTn/?igshid=MDJmNzVkMjY=

Summary

? Inflation is here and it’s crushing your purchasing power.

? The Reserve Bank literally told us they expect it to be here for years.

? You can sit online and debate inflation with other people about why/how/who.

? OR, you can get in control yourself and start to fight back against inflation.

? You’ll learn in the process and you’ll earn too.

? Don’t wait for the Reserve bank or your employer to try and sort this for you.

? Do this with a friend and stick to it for 12 months and see what you learn.

Remember, you might ask your employer for another 3% but what if they ask you the same thing? Can you give them another 3%? How are you going to do that? This goes both ways!

Written with love for every one of you and your family to help you get through.

F*&k inflation,?

Luke