Last month, Thabojan’s video message was a reminder to the community that things do feel different right now, and this can be unsettling with everyday costs rising, conversations shifting, and feeling a growing sense of financial pressure.  

But before reacting, it’s important to step back and understand what’s actually happening and how to navigate it with clarity and remember that often, things will recover. 

Why Does Everything Feel So Expensive Right Now? 

If your money doesn’t seem to stretch as far as it used to, you’re not alone. Across Australia, we’ve seen increases in fuel, groceries, insurance, housing and rent. 

And while we all understand that this is the result of inflation, it doesn’t change how it feels. 

The key is recognising that while this environment is challenging, it’s also cyclical. These periods don’t last forever and how you respond during them matters more than the environment itself. 

Are We Headed for a Recession in Australia? 

It’s one of the most common questions right now, and understandably so. The reality is no one can predict this with certainty. 

Economic slowdowns are a normal part of the cycle. Sometimes they deepen into recessions, sometimes they don’t. But focusing too heavily on predictions can lead to fear-based decisions. 

Instead, a more helpful approach is to ask: 

• Is my strategy built to handle change? 

• Do I have flexibility in my financial position? 

• Am I making decisions based on long-term outcomes, not short-term noise? 

Because while markets and economies move, a well-structured plan is designed to hold steady. 

You may have heard the term stagflation mentioned recently, which refers to the rise of prices, but a slower growing economy. 

It combines: 

• Inflation → the cost of living goes up. 

• Stagnation → economic growth slows, wages don’t move much, and activity softens. 

This is why things can feel particularly difficult right now. 

It’s not just that everyday expenses are higher; it’s that for many people, income and opportunities aren’t increasing at the same pace. That creates pressure. However, it’s important to keep perspective. 

True stagflation, in its most severe form, is relatively rare and typically short-lived. And while aspects of today’s environment may feel similar, it doesn’t necessarily mean we are in a prolonged or extreme version of it. 

What to Do If You’re Feeling Financially Stretched Right Now 

Feeling financially stretched is becoming increasingly common, but how you respond is critical. The instinct is often to panic or avoid the situation altogether. 

Instead, take a step back. 

Yes, there may be short-term pressure, but what does this mean at a higher level? What are you ultimately trying to achieve? 

Start by reconnecting with your long-term vision. When you’re clear on what matters most and where you’re heading, short-term challenges become easier to navigate. 

From there, if you really feel you need to achieve something in the short-term, focus on clarity: 

• Understand your current cash flow. Sit down and document your income and spending. 

• Identify essential vs non-essential expenses. 

• Review any loans or financial structures. 

This does not mean that changes are necessary but sometimes small adjustments can create breathing room. But more importantly, having a clear long-term vision, rather than reacting emotionally in the moment, can shift you from feeling overwhelmed to feeling in control. 

The Biggest Mistakes Australians Are Making Right Now with Their Money 

In uncertain times, it’s not just the environment that creates risk, it’s the decisions we make within it. Some of the most common mistakes we’re seeing include: 

• Reacting emotionally to short-term changes. 

• Trying to “wait things out” instead of acting strategically. 

• Focusing only on immediate pressure, not long-term outcomes. 

• Avoiding decisions altogether. 

These responses are understandable, but they can quietly undo long-term progress. Because often, the biggest cost isn’t what’s happening in the market, it’s how we respond to it. 

Uncertainty doesn’t mean you’re off track. 

It simply means it’s time to come back to what matters most: clarity, structure, and strategy. 

In Part Two, we’ll focus on how to move forward with practical steps to reduce stress, regain control, and build stability in uncertain times.