Today we had another Repo Rate increase and it seems every time this committee meets up we get another rate hike. The last one was in January so we have had 2 rate hikes in the first 3 months of this year.
We all know if you live within your means then these hikes shouldn't affect you but how many actually do that. Whilst everyone else has been swanning it up having holidays and eating out I have ben a scrooge of late. Maybe I have some Scottish blood in me after all as I have been keeping a tight rein on all finances.
All adds up when you throw the mortgage, car and credit cards into this.
This increase is not huge, but it all depends how tight the finances are already as many households are still trying to pay off credit they lived on during the lockdowns. Those fools obviously didn't see this coming and according to stats owe over 60% of take home pay each month to the bank. I was asked during the fist lockdown if I wanted a 6 month freeze on my home loan and denied their generosity. I am grateful I chose that option as I am 6 months further down the line to paying off the property and wonder how many took the extras and blew it.
The problem is the cost of living has increased that much more this year so the Jones's are literally screwed. If you were scraping by in January you are royally done right now. Job prospects are shot as the economy is on a downward trend with unemployment still on the rise. Companies are not rehiring and are more like being swallowed up by others incorporating that company into their fold letting the majority of staff go. This is a trend I have noticed with certain companies increasing their business outlook by buying other companies on the cheap.
I was in the shops tonight and bought more cooking oil as this is increasing significantly tat it is no joke. 2 Liters 5 years ago would cost around R30 and now is over R100 considering petrol is R15/L so cooking oil is over 3 x more than fuel. How does that make any sense as it doesn't and someone is screwing the system and the public.
The consumer price index says that prices have risen by 9% over the last 12 months and that is being kind as it is more like 20% in most cases or more. This includes shrink flation where the product is offering a smaller packaging for more money so you don't notice the difference immediately. A 15% increase in price with 10% less on offer is a 25% increase in anyone's language. Housewives tend to not notice immediately apparently, buy funny how men notice as soon as they see it.
How did they work out 9% from this data when dairy is also up over 30%. Who are they kidding as we are not blind to what we are now paying. I just find it funny that the facts don't lie and these have been manipulated or massaged to make one feel slightly better.
I am selling my car as I have been waiting for a better time to replace it and it will be perfect in a month or two as there will be loads of cars at auction due to repossessions. I do feel sorry for the families who are under immense financial pressure already, but the year has only started and another 3 rate hikes are expected.
I am just happy I am in crypto and long term am not really bothered to what is happening as like many of us have other plans and have a totally different economic outlook ahead of us.