‘Not behind us’: Australians issued brutal cost of living warning

Australians have been issued a brutal wake-up call when it comes to the cost of living crisis, with a financial expert warning of what is coming.

Aussies have been warned to brace themselves for a fresh cost of living battle, despite the fact many are still feeling the impact of the most recent crisis.

The consumer price index came in at 2.1 per cent for May, dropping from the 2.4 per cent in the 12 months to April and beating expectations.

Hopes for further rate cuts have also been bolstered after the trimmed mean inflation rate came in at 2.4 per cent, the lowest level since November 2021.

While slowing inflation is positive news, many Aussies are still feeling the pinch as the price of goods and services are still significantly higher than pre-pandemic levels.

Unfortunately, according to financial expert Noah Capozza, Aussies might not have much time to catch their breath before they are facing a new cost of living crisis.

Mr Capozza, a financial adviser at Link Wealth Group, issued the grim warning in a recent TikTok video, saying people need to start preparing now.

“The cost of living crisis is not behind us, in actual fact, it is ahead of us. If you felt the pinch of this cost of living crisis wait until you see the next one, because it is only going to get worse,” he said.

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He explained that if Aussies want to soften the blow for when the next cost of living spike comes, they need to start looking where and how they are investing their money.

“The cost of living crisis has no boundaries, it will reach everyone it has available. No matter … no matter the income, no matter the situation you are in, it will reach you no matter what,” he said.

Speaking to news.com.au, Mr Capozza explained that another cost of living crisis is inevitable because it is a “cycle”, noting it is something we have experienced in the past and will be something we have to deal with in the future.

The financial adviser pointed out young Australians are already struggling to purchase property, predicting prices are only going to increase as the population grows, increasing demand.

He also noted that wages often don’t keep up as prices of other necessities such as housing, food and petrol increase, making it even harder to deal with rising costs.

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Noah Capozza is a financial adviser for Link Wealth Group. Picture: Link Wealth

Ultimately, he said if people don’t want to find themselves in the same financial position during the next cost of living cycle, they are going to have to change their mentality and what they are doing.

“A lot of people that I see as an adviser, their main goal is just to pay down their debt and their money is just locked up in their house,” Mr Capozza said.

“Or, the alternative to that, is they just have money in a savings account and they just build up their savings,” he added, saying he see’s people doing this with the aim of having an emergency fund to last them if something happens or times get tough.

“To change your mentality and try and beat inflation, you need to start investing, allocating your money in other assets that are going to produce you an income, but also that are going to produce capital appreciation,” he said.

Mr Capozza said investment properties and shares were some examples, with Aussies encouraged to reach out to a financial adviser for advice on their own situation.

“I’d say that’s probably the lesson, you need to change your mindset, or you will be left behind,” he said.

Originally published as ‘Not behind us’: Australians issued brutal cost of living warning