Let's talk about something that might seem pretty far removed from the world of finance, but is actually impossible to separate from it. Feelings.
What? Feelings and finance? Weird, huh?
But whether we like it or not, money is inherently emotional. And when you throw another interest rate increase into the mix, there's a pretty good chance you've experienced, are experiencing, or will experience some sort of negative feeling about it.
Anger. Fear. Sadness. The three big ones. And sometimes, if we're really lucky, we get to experience all three at once!
Now, negative feelings are completely normal, by the way. They're part of being human. But they're also uncomfortable. And because they're uncomfortable, it's incredibly tempting to push them down, brush them off or pretend they're not there in the first place.
The trouble is, just because we ignore a feeling doesn't mean it disappears. Sometimes those feelings hang around in the background, showing up as tension, irritability or an unexpected outburst at someone we love who has done absolutely nothing wrong.
So, with this latest interest rate hike, I'm going to suggest something a little different. Instead of immediately diving into the numbers, calculations and what-ifs, let's take a moment to investigate what's actually going on inside us. Because sometimes, simply recognising and acknowledging how we feel can begin to shift something.
Okay, I know some of you are probably about to close this webpage right now. And that's okay. Because if you go away, sit with it for a while and still feel shit, this page will be right here waiting for you. 😉
Still here? Excellent.
Let's take a look at those three families of feelings.
Anger
Ah, anger. Frustration, irritation, rage, blame. That wonderful feeling that something is happening that absolutely should not be happening.
Anger often comes with an urge to fight back, argue, take action or find someone to blame. And when it comes to interest rates, there's certainly no shortage of potential targets. The Reserve Bank. The government. Your bank. The entire financial system. Take your pick!
Maybe you're furious that rates have gone up again. Maybe you're sick of doing everything you can to get ahead, only to feel like the goalposts keep moving. Whatever it is, rather than pushing that anger away, let's try acknowledging it.
Say to yourself:
The interest rate has gone up again and I'm fucking angry!
Go on. Give it a go. Does that feel true? Does saying it out loud make you feel even a tiny bit lighter?
Maybe it does. Maybe it doesn't. If it doesn't quite hit the mark, find words that do.
Perhaps it's I'm so frustrated that no matter how hard I work, things just keep getting more expensive. Or maybe it's I'm sick of feeling like I'm constantly taking one step forward and two steps back.
It doesn't matter whether the words are polite, sensible or particularly elegant. They just need to be true for you.
Fear
Fear is a sneaky one. It has a wonderful way of dragging us into the future and presenting us with every possible thing that could go wrong.
Will I be able to afford my repayments? What if interest rates go up again? What if something unexpected happens? What if I lose my job?
Before you know it, you've mentally rehearsed seventeen different financial disasters, and none of them has actually happened. Sound familiar?
Fear can show up as worry, anxiety, nervousness or insecurity. And when things feel uncertain, our minds can work overtime trying to prepare for every possible outcome. But rather than letting those worries run around endlessly in your head, let's see if we can identify the feeling underneath them.
Say to yourself:
The interest rate has gone up again and I'm scared about how I'm going to manage.
Does that hit the mark? Or perhaps it's something else.
Maybe you're worried about your family's future, anxious about your financial security or simply scared because you have no idea what might happen next.
Find the words that feel true to you, and notice what happens when you acknowledge the fear rather than getting caught up in all the stories surrounding it. Does anything soften, even slightly?
No pressure if it doesn't. We're not trying to win a prize for emotional enlightenment here. We're just getting curious.
Sadness
Now, sadness might not be the first emotion that springs to mind when we think about interest rates, but I suspect it's one that plenty of us experience.
Sadness can show up as disappointment, heaviness, hurt, exhaustion or a sense of loss. And unlike anger, which often makes us want to fight, or fear, which sends us racing into the future, sadness can leave us feeling a little defeated.
Maybe you've worked incredibly hard to get where you are, and you thought things would be getting easier by now. Maybe you're disappointed that you can't provide the lifestyle or financial security you'd hoped for. Or perhaps you're grieving the future you imagined for yourself, one that suddenly feels a little further away.
That can be a pretty tough feeling to sit with. But let's give it a go.
Say out loud:
The interest rate has gone up again and I'm really disappointed. I work so hard, and I thought things would be getting easier by now.
Take a moment. Does that feel true?
Perhaps there's a different sadness underneath it all. Maybe it's I'm exhausted from trying so hard. Or I'm disappointed that things aren't turning out the way I'd hoped. Perhaps it's simply I'm sad that we keep having to put our plans on hold.
Whatever it is, see if you can find the words that genuinely connect with how you're feeling. You don't need to justify it, explain it away or convince yourself that someone else has it worse. And you certainly don't need to force yourself to feel better.
For now, we're simply recognising what's already there.
Okay, so now what?
So you're angry, scared, sad or perhaps enjoying a delightful cocktail of all three. Now what?
Well, here's a thought. We can't control the Reserve Bank, the economy or what happens with interest rates next. But that doesn't mean we're completely powerless.
Maybe there's a different way to look at things. A thought that feels a little more helpful, a little more hopeful, or even just a little less shit.
Something like:
I’m going to take things one step at a time.
It’s not always going to be this way.
It’s possible it’s not as bad as my mind is telling me it is.
Maybe I can do something to help my situation.
Do any of these change the feeling for the better? If not, find something that does. Something you actually believe.
We're not looking for some fluffy affirmation about how everything is wonderful and the universe will magically pay our mortgage. We're looking for a thought that feels genuinely helpful. Something that might open up a little space or possibility.
Because sometimes, changing how we look at something can change how we experience it. And once the emotional dust settles a little, we might find ourselves in a better position to look at our options.
Maybe that's reviewing the budget, checking whether your home loan is still competitive or simply having a conversation about what's possible.
And if you need a hand with that last bit, well, you know where to find me. 😉
I can't change interest rates. But I can help you explore what you can do about them.
Let's Talk About What's Possible
If you'd like to review your home loan or explore what options might be available, I'm always happy to have a conversation.