Try to plan for life’s unexpected challenges

Inflationary pressures and market volatility may tempt some people to indulge in riskier financial behaviour or to change their usual prudent behaviour.

The Authority encourages people who may be experiencing a change in their financial circumstances to speak to their product provider before taking any action that may have detrimental long-term consequences.

A smart investor:

• Weathers negative financial shocks with an adequate emergency fund
• Understands that risk exists in all investments
• Recognises the importance of diversification, especially with respect to protecting investments from losses from a single, unexpected event
• Plans for life’s unexpected challenges with budgeting strategies to manage risk, reduce the impact of inflation, and avoid high interest debt
• Focuses on the impact of inflation on purchasing power and uses real rates of return to assess investment performance
• Conducts research before investing to protect against financial scams

Visit the Consumer Awareness section of our website to view further support and guidance.