Freaking out about interest rate rises? Here are 5 things to do today

I returned this week from six blissful solo nights away in a cabin in the woods, where I meditated, cooked nourishing curries, listened to Dolly Parton and slept. Oh, did I sleep!Being me, I also packed my household budget binder and spent some time quietly reflecting on my annual budget.But while I was away, our Reserve Bank governor, Phil Lowe, has been cooking up other plans for my emotional state this financial year.

After nearly two decades of observing interest-rate rises from the sidelines as a dispassionate and renting journalist, I now find myself a cog in the wheel of the official “transmission mechanism” of “monetary policy”, under which borrowers are squeezed like lemons to bring about a slowing in demand and price pressures the central bank deems appropriate.

A degree of fear about what is to come is, in fact, the precise emotional response Lowe is hoping to elicit in borrowers. Joblessness is at its lowest in nearly half a century and, so long as you keep your job, you have an income to keep funding your mortgage. If the cash rate goes to 3 per cent, I’ll be out of pocket by an extra $932 a month. And so forth. At some point, my monthly budget surplus of about $1500 would be extinguished, and I’ll need to take action.Worst-case scenario, I could stop contributing extra to my superannuation, despite that strategy offering some of the best tax breaks in town.

We 'Boomers' were so lucky to have been able pretty much get Careers of choice, buy an affordable home, cars and groceries, and a good health system. I feel for the young now, no real careers, casual jobs only, expensive Uni fees, unaffordable housing and a sick health system.

I’m old enough to remember 17% interest rates. We would dream of interest rates where they are today. Just don’t borrow more than you can afford to pay back.

Outrage generating nonsense: this high paid person pays private school fees and spends this much a month on the gym and take away food.

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