Navigating Cost of Living and Inflation: Take Back Control of Your Money

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Summary
In this episode of the Living My Life Like It's Golden podcast, host Louisa Larado discusses the pressing issues of cost of living and inflation, and how they impact personal finances. She shares her own experiences with financial struggle and emphasizes the importance of mindset in overcoming these challenges. Louisa provides actionable tips for listeners to take control of their finances, set achievable goals, and prepare for the upcoming holiday season without financial stress.

Takeaways

• Cost of living and inflation are significant pressures on finances.
• It's essential to break the cycle of financial struggle.
• Mindset is the foundation for financial success.
• Making a decision to change is the first step.
• Acknowledging limiting beliefs can help shift your mindset.
• Setting clear, achievable financial goals is crucial.
• Becoming aware of your income and expenses empowers you.
• Prioritizing financial management can lead to better outcomes.

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Disclaimer: The information contained on today’s podcast has been provided as general advice only. The contents have been prepared without taking into account your objectives, financial situation or individual needs. Before making any decision regarding the information, strategies or products mentioned on today’s episode, please consult your own financial advisor or other professional first.

Chapters

• 0:00 Navigating Financial Pressure
• 3:24 Breaking the Cycle of Financial Struggle
• 7:37 Mindset Shifts for Financial Empowerment
• 12:52 Setting Goals and Taking Action
• 17:01 Becoming Aware of Your Finances
• 19:53 Preparing for the Holiday Season

Transcript

Louisa Larado (00:00)
Hi and welcome to the Living My Life Like It's Golden podcast. I'm your host, Louisa Larado. And on today's episode, I wanna discuss what is spoken about so often at the moment, which is cost of living and the pressures of inflation and just how everything is more expensive in general and the impact this is having on you and your money. And also I wanna show you how you can break through this cycle and empower you to finish 2024.

in a strong financial position and then start creating these great lifelong habits you can start to make sure 2025 starts in a financially amazing position for you. So stay tuned for all those tips.

Thank you so much for tuning in today. And I thought this is a really important topic to discuss because cost of living inflation is all so many people have been speaking about for the last year or so. And I understand because I'm there too.

know how much more expensive my groceries are now, how much more my bills are now. And it does put a lot of pressure on you. And you have a couple of options in this situation right now. You can decide that it's all too hard and then it's going to be a struggle and money is going to be stressful and keep doing what you're doing. And if that's working for you, if that makes you feel good, then that's fine. Don't change anything.

But if you are feeling like crap when you're doing that, if you're feeling constantly stressed or worried, or you're feeling maybe like your finances are overtaking you at the moment, you don't have that control, like your money is the one controlling you rather than the other way around, then I want you to keep listening because I've got some really good simple tips and switches you can start doing just to help.

you take back that control of your finances to ensure that you are ending this year in a really good financial situation without that stress and struggle and worry about your money. Now, it's also scary because yesterday it was exactly two months till Christmas and I know for a lot of people this time of year

the lead up, there's so many, you know, extra events happening. There's a lot of extra expenses that you're to be expecting over the next couple of months. So I really want you to be geared up to tackle that with empowerment and just set you up for success. So what I found when I was stuck in struggle mode, and which is where a lot of you most probably are right now, if you are feeling that pressure and that financial strain.

is once you decide it's going to be a struggle and you just sort of succumb to it and you don't see a way out when you're stuck I guess that's when you know you're just going to keep repeating these patterns it's like you're on this hamster wheel you can't get off it so for example when I went through my bankruptcy a few years ago

I was in that mode a hundred percent. Cause I literally had to go from having nothing. So I understand financial struggle. I understand money stress a hundred percent. Cause I've been there in the most extreme ways where, at one point did not have enough money to pay for groceries for our family for that week. If we made our mortgage repayments. so I know the struggle mode, because when we were there,

It firstly put a lot of strain on relationships because everyone is worried when you're not in a good head space and you know you and your partner might be arguing over money or just trying to figure out how it's all going to work. It put it strain on things like having a decent night's sleep because if you're more worried about money then you're not going to be sleeping well and these are all things that were happening for me so I just remember

getting to a point and thinking, you know, there has to be another way, even after we'd filed for bankruptcy and we had like $0 left and had to rebuild again. I didn't even want to think about actually finding a solution. So we stayed in that cycle. And even though, you know, we had this clean slate and we were earning money again and we could start rebuilding, I decided that money was going to be hard for us. And it was, it was.

didn't matter how much money we earn, would live paycheck to paycheck. And it was making that decision I found that I need to find another way. This just isn't working. And it's not always about how can you earn more money? How can you create additional money? Do you need to have an extra job? Do I need to manage my money better? mean, they're parts of it, but it really comes down to making that decision first that

there needs to be something that's going to shift here. There needs to be a path that I can take that's going to get me to where I want to be headed. And for me, it took a lot of making mistakes to figure this out. Like I'm talking a few years of trying different things and learning different, yeah, making a whole load of mistakes. And when, when I decided that, okay,

This is it, this isn't serving our family. Being stressed about money. Always telling my kids that money's gonna run out, that we don't have enough money, we can't afford those things. Not only was I passing those stories and those messages down to my kids, because that was what I was putting out there, that's all that would continue to happen. So what I found instead, when I decided this is it, we are enough, enough is enough.

we're going to start looking now at how we can not only rebuild our finances, but fix all that mindset stuff as well. And that really was what was holding us back. Because when you don't have the right money mindset, it's like you are looking through the world with the wrong glasses prescription on. So nothing is clear. And you know,

you try the right prescription on all the sudden, everything comes into focus and you know, the next steps are a lot clearer for you. And that's what I found when I started doing the work around my mindset, that that was when things started to shift for me. And that's why I always speak about it on this podcast, because mindset is literally the foundation to every single thing. And it's not just money, it's every single aspect of your life. So.

How does this apply to inflation right now and cost of living and just trying to get ahead when we feel like we are drowning a lot of us? And you know, that doesn't serve you. It doesn't save your family when you are feeling that way. So a few really simple shifts you can start to do. Firstly is just to number one, make the decision.

that you're ready for something different to come into your life.

Sometimes just declaring that and making that decision as easy as it sounds can be the foundation. But what has to happen when you make that decision is that you may need to step out of your comfort zone to take actions to get you to where you want to be. And what your brain is in right now, if you are in that stress and worry and struggle mode with your money, you are...

in that sort of fight or flight mode. And that's because our brains have not really changed that much since the caveman days. So any sort of stress or strain or struggle that we put on, we perceive in the same way as being chased by a lion. So our brain automatically goes into that stress mode. You know, our brains filled with cortisol, which is that stress hormone, which means that our judgment is impaired. It means that we can't clearly focus on

all the solutions. We just focused on one thing and it's that tunnel vision. So when you actually make that decision, it's almost like you are declaring to your brain, okay, I'm going to try something new. What's going to happen though, when you decide to try something new, is you're to have all these stories pop up in your brain to say, this is why you can't do it. This is why you're going to fail. Because again, your brain is trying to protect you. It's trying to keep you safe. It's going to keep you

in that little bubble of your comfort zone where you can't see how you're going to get there because your brain doesn't want you to take any risks. So it's going to try and protect you at all costs. And this normally takes the path of like this little voice in your head that says, but you know, you don't earn enough money or that works for her, but it's not going to work for you. So don't be surprised if you hear this little voice popping up and telling you

a million different excuses why you shouldn't. So what you need to do then next, so first make the decision, see what comes up for you. When all this stuff comes up, these ideas, these beliefs, these limitations that come up for you and they will, then just acknowledge them, write them down. And once you've got your list of, it might be a long one or it might be a short one, even if it's just a couple, then

What I want you then next to do is start looking for evidence why that is not true. Because right now you're looking through this wrong prescription glasses so you can only see the the proof of all these beliefs that you've just had pop up in your head. But when you change that prescription and you have that clear focus now, what you'll start to notice is actually there's evidence for the alternative. So let's say

The thing that keeps popping up for me is I'm bad with money. And I'm in my brain right now. All I can see is exactly why I was bad with money. I was late to pay that bill. I spent way more than I should have at the shops and so on. So I'm finding all this evidence to support that belief. Okay, well, now I want you to stop and think, well, what have I done that?

can tell me otherwise, that tells me actually I am good with money. And then you start listing down the evidence of times that you were actually good with money, even if it's only a couple. And then that's what you start focusing on again. And this is one of that ways that you can start to slowly retrain your brain. There's this amazing thing that scientists have found called neuroplasticity, which means our brain can be rewired. It can be changed. can reprogram it to suit what we want.

So if you are done with struggle, then you need to start putting the training into your brain the other way. So start looking for evidence. So a big one that probably comes up for you right now is if you are struggling with all this money, expenses and cost of living is I just can't get ahead. I just can't get ahead. And maybe that's true right now. Maybe that is true right now. But when you start again, look for evidence of the ladder. When were times where you could get ahead, even if it's

things have changed now. Where were times where you felt really good and inspired and empowered by money? Just write them down. It's not a judgment exercise, it's just acknowledging it and start focusing on the new beliefs. And even if you don't have evidence of that yet in your life, like if you can't think of a single time where you were empowered and did well with money, then look for evidence of other people who are doing it. And if they can do it, why can't you?

So you've got your decision, you're starting to acknowledge all the beliefs and ideas that are gonna come up with you. Next, I want you to start thinking of, what do you wanna have instead? What's the alternative? What is the goal that you wanna work towards? So especially now, I suggest starting with a really small goal to start off with or something that's sort of achievable for you, but may seem a little bit out of reach. So a really good one and...

I'll speak a bit more about this at the end, but I've got a $2,000 cash boost for Christmas challenge. So let's say that that was our goal that we were saving up $2,000 by the 25th of December. So that's just over less than two months away. So I've got my goal, I've got my focus, and now I'm just going to start looking for ways that I could start putting actions into place that are going to get me to that goal. And just having that focus sometimes,

You might not have any idea how you're going to get there. You might think there is no way I don't have a cent extra to spare before my next pay comes in. know, everything's taken up on bills and expenses, but you will be surprised when you have that clear focus and you made this a priority in your life that things will start to change and things will start to shift and things will start to show up that you did not know before. So having that clear focus and

making it a priority, that's gonna start to create all this momentum. Like a really good example is this year I completely overhauled my diet. Like the last few years I have just, I went from being quite a healthy person to everything was too hard. I couldn't be bothered and I just ate whatever. And I felt like crap all the time. And I knew there were certain foods that I shouldn't be eating but they were just like my favorite foods like all the gluten and sugar.

And I knew that I shouldn't be eating less foods, but I just didn't see how I could shift that. I didn't see how I had the time to prioritize anything else in my life because my life was so busy. I'm working, I've got my kids, know, their first priority at the time. And I'd always put myself last. And it wasn't until I thought, you know what, enough, enough is enough. And I need to make my health priority. I need to make myself feel good again.

And I decided that I was gonna make healthy eating a priority. And even though I thought I had not a single second in my day spare to meal prep and do all the extra foods and even if it meant me making something separate for myself or my kids, because they're a bit fussy, which is annoying, but anyway, I knew that I couldn't make those excuses anymore. I had to make it a priority. And when I made that decision and I was like, this is my goal.

And it wasn't a goal about losing weight. It was just more about feeling better about myself and that confidence, and just feeling energy again and not feeling so tired. And when I decided that and I was very clear on why I wanted that to happen, then it was easy. Somehow the time magically appeared and, you know, I found the right meal plan that worked for me and...

it became easy. just became a normal part of my life and I haven't looked back since and I don't miss sugar or gluten anymore surprisingly. But same goes for your money. So if you decide this is what I want to focus on, this is my priority, this is why I want to make this a priority, it is amazing what will show up for you. But if you don't try and you don't take those first few steps, then that's going to be tricky for you.

So they're the first few things I want you to do. So firstly, make the decision that you want things to change. Second, start acknowledging beliefs that might be coming up to stop you. Third, set a goal, an explicit goal, clear goal that you know you can achieve, but maybe a bit out of reach. Four, make it a priority. Now the last thing I want you to start doing is thinking about becoming a bit more aware of your money that you currently have coming into your life.

I know when I went bankrupt for the first year or so after my bankruptcy, I just didn't even want to think about it because when money is hard, when money is a struggle, you don't want to focus on managing it. Or for me anyway, I didn't. I wanted to have that ignorance is bliss mindset about money because it was too hard. decided money was too hard. So I didn't really know how much money was coming in versus how much is going out. I knew roughly, you know, how much we needed, but

I wasn't 100 % clear on it. didn't know how much was going to come out with bills each month. Or, you know, I just hoped that there would be enough money in it all the time. And we were constantly going over. Our money was overdrawn. You know, we'd have a bit of savings, then we'd have to go into that all the time. And the next step then was, yeah, just becoming aware of your money. you're clear, really, this is how much I've got coming in. This is how much is going out. And then once you're clear on

Incomings and outgoings and it's not to budget it's not to feel restricted and tired and confined to money and think crap That's all I have coming in. How am going to fall for everything? It's becoming clear because once you do this exercise you become more empowered by your money because you're like I know exactly what I've got coming in I know pretty much what's going to be coming out and you can look for areas and what when you do this exercise to you'll start to notice any money areas that You might be paying for stuff that you think actually

I don't need that service. don't need that subscription. I don't need to subscribe to Netflix and Stan and Disney and all the things, you know, maybe one of them is enough or maybe not. I don't need any of them. Maybe it's something that is, you know, you have subscriptions that you might have signed up to. And a really good one of this is just to go through on your phones and see in your account if there's any subscriptions that you're paying like annual subscriptions. I had so many that I was paying for that.

hadn't used for the last couple of years, but then I'd forget about it and then the money would automatically come out again. So just becoming aware of all your money, in comings, out goings, and then thinking about maybe stuff you could, that isn't serving you right now that you can let go of. And then that money instead, you can maybe start diverting to whatever your savings goal was that you set up. So it's not even about earning more money, but it's about just being really clear.

It all comes down to being clear and then prioritizing. And these few little steps that I've shared with you, that's just going to help you be a bit more empowered, be a bit more inspired by your money and start to feel like you are the one in control of your money and it is not the one in control of you. So if you want to take this even further, then tomorrow I'm going to be starting my three day cash boost.

by Christmas challenge. And the whole point of the challenge is to help you give you the exact roadmap, skills, tools, strategies you need to save an extra $2,000 in time for Christmas. So I'll be going into a lot more detail than what I shared with you on the podcast today. And I will be giving you the exact exercises and strategies that I've taken years to try and figure out through making a whole lot of mistakes. So now I've found a much quicker way to get to this goal.

because this time of year, I really just want you to feel really good about your money. I want you to feel inspired and empowered and it's gonna be a fun time of year coming up to it. You know, there's so many good events going on and I don't want you to feel like you have to miss out or say no because you can't afford it. I don't want you to feel like when you're spending money for your loved ones at Christmas that, I've got to spend this and that restriction and...

Or even worse, I don't want you to think, I'm just going to chuck it all in a credit card and worry about it in the new year. I want you to feel like, yes, I can do this right now. I've got, I've accounted for all this. The money is there, ready to go. I'm inspired and I'm, you know, I can spend and it'd be fun because it should be a fun time of year. It's all about connection and love and coming together and giving and celebrating. So why should you feel that stress and strain? Or

do all that and then post Christmas, Boxing Day or in the New Year, wake up with the post Christmas money hangover of thinking, my gosh, now how am gonna get back on track? Or I've got so far into debt or dipped into my savings and now I feel like crap about my money again. that's not what I want you to end this year with.

The stuff I'm going to be teaching you as well over the three days, it will give you lifelong habits that you can start 2025 with a real head start with your finances because the tools I'm giving you doesn't just apply for Christmas, it applies for life. It's completely free to do this challenge. You just need to make sure you're registered so you can get the links to the Zoom workshops that will be happening there one hour each day. And if you want even more than that,

Then there's also a VIP experience. And in addition to the one hour challenge each day, you'll get an exclusive Q &A session with me for an hour after each of the challenge days. And there's also a few exclusive bonuses in there if you want to be a bit more, go a bit more in depth into this challenge and have a few more strategies and more coaching personalized to your own needs. And that might be for you.

Otherwise, the free event, will still get everything you need to reach that $2,000 goal just in time for Christmas and feel great about your money because that's how you should be feeling. So if you are interested, if you want to learn more, if you want to save your free seat, you just need to head to louisalorado.challenge or you'll find the link in the show notes. And also if you can't make any of the challenge days live,

you'll have access to the replay of every single session too. So it doesn't matter if you can't make it live, but you can still take part in the challenge and join our supportive community where we'll all be sharing our wins and successes with this challenge. It's gonna be great. So thank you so much for listening. If you enjoyed today's episode and you know someone else may benefit from it, please feel free to share it. Make sure you're following along to the Living My Life Like It's Gone podcast.

And if you have anything you want to share, leave me a review or a comment and I can't wait to hear from you. Enjoy your weekend and I'll see you on the next episode.