Your biggest financial shock is at home – here’s how to fight it

Household wealth is holding up well but financial pain is hitting people anyway. It’s a food fight, and there are ways to combat it.

Have you checked how your superannuation, shares and real estate assets are doing lately?

Despite war, disease and other worries rattling the globe right now, you may be pleasantly surprised.

With less than a month left in the financial year, total returns from Aussie shares are in positive territory despite Russia’s invasion, surging inflation and tech stocks tumbling.

Property prices in every capital city are higher over the past 12 months, ranging from about 6 per cent in Melbourne and Perth to more than 20 per cent in Adelaide and Brisbane, although housing markets are starting to weaken.

And super is holding up well given the global financial turmoil, and may still deliver a positive return for 2021-22.

However, an immediate and more painful financial shock is happening much closer to home.

All you need to do is look at your grocery bills.

Many prices have doubled and, depending on where you shop, broccoli can now cost $10 a kilo, $10 for a punnet of strawberries and $12 for an iceberg lettuce.

Russia’s war on Ukraine has inflated wheat, fertiliser, fuel and other prices, and there was some talk last week of oil climbing from its current $US120 a barrel to more than $200 a barrel. This would add another 80c a litre to retail fuel costs, and put more strain on getting goods from farms and fields to your home.

In short, fruit, vegetables and other important groceries aren’t getting cheaper any time soon.

Money specialists say we’re not alone when it comes to soaring prices – Australia’s inflation is below that of the US, Britain and Europe – and there will have to be household belt tightening.

Counting the cost of food shopping isn’t fun, but consumers can find ways to save.

After years of prices going nowhere and interest rates falling, people haven’t felt pressure to find savings. Until now.

Fortunately, there are some handy strategies that can add up to significant savings.

SEASONAL IS SEXY

Fresh food prices gyrate dramatically depending on the season, and the added inflation pressures we’re seeing now send prices skyrocketing on out-of-season items.

Check with your grocer or supermarket – some have guides to what’s in season and cheaper. For example, Woolies says avocados, grapes and watermelons are in season right now.

Talk to your local greengrocer about what to expect, and if you can’t do without your broccoli or strawberries right through the year, be prepared to pay up.

GROW YOUR OWN

Got space at home for a vegie patch? Gardening experts say growing your own food can recover your costs within just one season.

They say there is equipment available for all spaces, whether an apartment balcony, a small courtyard or a big backyard.

PRICE FREEZE

Fresh food is great, but many vegetables are snap frozen so when they’re reheated they’re still tasty and retain all their nutrients.

One of my personal lunchtime staples is frozen bags of mixed vegetables – costing about $1 a bag for two out of the five recommended daily serves of vegies.

SHOP WISELY

As every lettuce leaf is now precious, always shop with a list so you don’t end up buying food you already have at the back of the fridge.

Use unit pricing to compare packaged versus no-packaged foods. The loose stuff isn’t always cheaper than wrapped vegies – look at carrots, for example.

Originally published as Your biggest financial shock is at home – here’s how to fight it