I consider myself to be financially stable. Always had enough money to do what we want, when we want. We don't live in luxury, but it's a comfortable life. When the car needs a service, we just take it out and get it done - don't really think about it. We want to take a drive to the country and spend a night in a B&B? No problems - just hit the road. Too lazy to cook at home? alright, let's dine out - maybe a bottle of wine with that too...
These days however, we're not doing that as much - if at all. My car was due for a major service 3000km ago, still haven't got it done. We haven't done a B&B night in about a year. Dining out much less now and maybe forgo the bottle of wine. Everything is just costing more these days.
The RBA is putting up rates because inflation is too high. They say we're spending too much. Sure I'm spending more, but I'm not getting more for it. Infact, I KNOW i'm getting less. Basics like fuel and food is cost about 20% more on average. $60 to fill up a tank before, now its closer to $80. Bread use to be $1.90 6 months ago, now it's $2.20. I'm still driving and eating the same - nothing has changed. My pay pack only went up 4% - more than some people's I know of. This is hardly enough to cover the extras.
Yes, we're cutting back on non essentials. Yes, we're budgeting and spending more wisely and yes, we're feeling the pinch.
I just feel for those families who were already struggling, they must be doing it even tougher now.