Welcome to my newsletter “Behind the Numbers”.

A fortnightly newsletter where I share tips for Budget Owners on how to run your budget more effectively. I may also share an interesting sporting stat along the way.

For those of you who know my story you’ll get why numbers and sport are so much part of who I am.

Own Your Budget – How will inflation impact your 2025 budget?

I read this week that some key household costs have increased more than 12% over the last couple of years. Why is 12% a key figure? That’s the average increase across all prices over the last 2 years.

Which got me thinking…

What were these higher than average items and how will they impact my household budget?

As I reviewed the list, I noticed that some of the big hitters would also have a significant impact on business budgets.

Some of the items that stood out were:

Insurance up 30.5%

Gas up 21.3%

Electricity up 20.2%

As budget owners, there is not much we can do to counter these increases. That’s because they are caused by factors which are out of our control.

What we can do though, is understand the potential dollar impact of these increases.

This will help us answer the question:

If we did nothing different, how much will our budget increase by?

Some people may refer to this as the “worst case” scenario. I would encourage you to think of it as the “no change from current day” scenario.

Then the question becomes:

Can we live with this increase, or do we need to change something?

As some of you begin to think about your budgets for 2025, I would encourage you to start by understanding your “no change from current day” scenario.

The next couple of months (August – September) is the perfect time to start your budget process for 2025.

Own your budget so it doesn’t own you.

PS: Want to get ahead of the game when it comes to your 2025 budget? Now is the time to start, and I’d love to help. Let’s have a chat.

One sporting stat

A recent study by Oxford University found that the cost to host the Olympics is three times the bid price AND every Olympics over the last 60 years has finished over budget.

For example, the 2016 Summer Olympics in Rio de Janeiro cost US$24B and finished 352% over budget.

You can find the complete list of Olympics budgets here (thanks to Joe Pompliano)

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