Expert’s blunt message to struggling Aussies ahead of expected rate rise
Australians braced for another potential interest rate shock are being urged to radically reset expectations, with a prominent wealth expert declaring that merely surviving from one pay cycle to the next is a victory.
With soaring inflation expected to push the Reserve Bank toward its fifth rate hike of the year on Tuesday, financial planner and Twelve Months to Financial Freedom author Canna Campbell warned that historical cost-of-living pressures mean household balance sheets will likely get worse before they get better.
Survival is the new success
Campbell told nine.com.au that the current economic squeeze removes any stigma around putting long-term wealth creation on pause.
“I think just having a goal to keep your head above water right now,” she says. “There is no shame in that, and I think that’s a great goal to accomplish.”
She stressed that families navigating childcare costs and soaring day-to-day bills should not judge themselves harshly if progress stalls entirely.
“Even if it means you don’t pay a dollar off of debt, you don’t put a dollar into savings, the fact you’re able to get through a pay cycle, I think that is still absolutely more than acceptable,” Campbell continues.
“And of course it comes down to your situation. There are people who don’t have a mortgage or are living at home still, versus young families, two working parents, day care, feeding growing children, which is ridiculously expensive.”
Ditch the weekend overhaul
For those in a position to make inroads on securing their financial futures, rather than attempting sweeping financial overhauls that trigger anxiety, Campbell advocates for scaling back ambitions to manageable, daily actions to protect mental wellbeing alongside household funds.
“Just do what you can each day, don’t overwhelm yourself, don’t overload yourself,” she explains. “It’s not about fixing everything over a weekend.”
Campbell’s strategy centres on breaking down intimidating targets into smaller, time-bound steps over a 12-month period, whether that means carving out a small travel fund or clearing $500 off consumer debt before the New Year.
“I also think the magic in the goal setting is also giving it a proper date. Then also the clock is ticking.
“It makes you feel so much more accountable, and you’re so much more aware of the value of time and not wasting it.
“So it’s about micro-achievements. So you’ve got that clarity, and you’ve also now got a purpose.”
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