Have you heard of the term Cozzi Livs?

It was Macquarie Dictionary’s Word of the Year in 2023 and while you might not have heard it phrased that way, you actually know it well. Cozzi Livs = Cost of Living.

We’ve all experienced increased financial pressure lately which can impact our budget but also our wellbeing and stress levels.

Carrie-Ann McLean understands the challenge Aussies are facing.

Carrie has experienced it all – debt, a negative money mindset, addiction and homelessness and she’s come out the other side. Her book, ‘Budget Right‘, offers a holistic approach to financial freedom, delving into spending habits, triggers, and mindsets. Carrie’s mission is to let those struggling with money management know they are not alone and that overcoming financial challenges is achievable.

52Q host Steff Willis and guest, Carrie-Ann McLean
52Q host Steff Willis and guest, Carrie-Ann McLean

Carrie joined Steff and Micah on the latest episode of 96five’s podcast 52Q to share her tips on how to better manage a budget during a cost-of-living crisis.

The first step, according to Carrie-Ann, is to manage the feeling of overwhelm.

“Your emotions are real” Carrie-Ann said.

“There’s stress, panic, anxiety, fear. All of that is heightened in a moment of crisis. When you’re in that situation, you don’t tend to think rationally.”

“It’s good to just stop, breathe, relax… know that yes, these emotions are real and justified because it is a tough time, but just taking a step back, sitting down, having a cup of tea… so you can think rationally.

Practical Budgeting Tips

Carrie-Ann then moves on to practical advice, emphasising the importance of knowing exactly where your money goes:

  1. Track Your Expenses: Have a look at everything you’re spending money on. Whether it’s through cash, tap-and-pay, or credit cards or even direct debit subscriptions you might have forgotten about, identifying all your expenses is critical.
  2. Use Available Resources: Use budgeting tools to understand if you’re spending more than what you’re earning. Carrie-Ann has offered 52Q listeners (code available in the episode) access to her budgeting spreadsheet on her website, which can help you categorize and monitor your spending more effectively.
  3. Meal Planning and Grocery Stock take: Carrie-Ann encourages listeners to do a grocery stock take and meal prep based on what they already have, reducing unnecessary purchases and food waste.

Recognising Spending Triggers

Understanding your spending habits, such as whether certain emotional triggers lead to impulse purchases, is essential for financial stability.

When you spend money, Carrie-Ann recommends asking yourself “how am I feeling right now?” to determine if there’s an emotional or habitual reason you might be spending money.

‘Status Spending’ is essentially spending money you don’t have on things you don’t need to impress people you don’t like. Carrie-Ann McLean, Author of Budget Right

Carrie-Ann also encourages people to avoid status spending and to instead focus on personal financial health.

Listen to the full episode with Carrie-Ann McLean in the player below or search 52Q wherever you get your podcasts.

Feature Image: Kelly Sikkema on Unsplash

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