BBC Radio Scotland Guest appearance - Navigating the cost of living crisis

We were discussing the cost of living crisis with Stephen Jardine on BBC Scotland radio last week.

Figures released yesterday show that the Consumer Prices Index (CPI) has risen to 3.1% in August driven by increase to petrol, diesel and airfares.

Of course, inflation has always been with us. As a rough rule your purchasing power over a 30 year period typically halves in value. So that food shop that cost you £50, would cost £100 in 30 years. That's inflation in action which is a normal feature in our lives.

The challenge is we are feeling it more in the present day, with tensions globally creating more extreme rises in inflation that perhaps we are used to. Was inflation a topic a decade ago really? Sure it happened but we didn't necessarily discuss it to the level we do today.

However, I'm going to reframe this for you (and I caveat this is hard, its tough for many out there and my heart is with you as we navigate this).

Money has become more of a topic at the dinner table.

We are discussing inflation - how much that pint costs; how much that brand name butter now is in your local supermarket, and so on.

That’s exciting. We are opening up the conversation about money, the choices we’re making and the sacrifices at times that are being made. It’s making partners, families more informed, more curious about their money, how you can use it wisely, and that is a massive plus.

My takeaways for you:

✅ check in monthly with your money. How did you spend it over the last month. Are you spending on things that serve you or is it being wasted?

✅ if you need to what will you sacrifice. What’s your non negotiables and where can you flex to make your money stretch further

✅ Make it fun. Go on neutral ground when discussing, perhaps with some good food and a glass or two

✅ Be open and honest with each other with no judgement

✅ Agree a spending plan for the month ahead. Ideally that includes ‘paying yourself first’ and continuing to build up your savings

✅ life is absolutely there to be lived. The key is to find that tension between enjoying now and planning for tomorrow