If you’re in your 20s or 30s, it’s hard to know what to do with your finances right now. House prices remain sky-high, even as interest rates climb. And there’s no doubt the stock market has had a very bumpy year.

But what if you’re in your 40s, 50s or beyond? It’s equally true that the high cost of living is making things difficult here too. There’s less on hand to meet regular outgoings like mortgage repayments and insurance, and many are concerned by the significant drop in their superannuation balance.

The fact is, whatever our age or stage of life, many of us are struggling to adjust to the uncertainty out there and even the best-laid financial plans may be looking a little wobbly.

AIA financial planner Paul Peng Yang’s advice is: “Don’t panic.” Financially difficult times are nothing new, and with a little bit of planning we can work to overcome them – just as our parents and grandparents once did.

“It’s actually a good opportunity to review your goals, your investment plan, and your family goals,” advises Paul.

“Once you have a clear picture of what you want your future to look like – and a timeframe attached to it – you’ll be more confident about any actions you take.”

The first step in meeting these goals is to manage your cash flow – how much money you have going in and out of your bank account. “In an uncertain world, a healthy cash flow is fundamental, and at the very least you want to break even,” Paul says. “Look at businesses – when they go bankrupt, often it’s not because they don’t have a great business proposition, it’s simply that they don’t have the cash flow.”

This might require some serious budgeting, but it doesn’t have to get too complicated, Paul adds.

“In a high-inflation world, I’d suggest a very simple method: think twice before you buy anything. Think about whether you really need it.”

For those with a healthy cash flow, it’s time to think about investing. If you’re in your 20s or 30s, that may mean buying your own home. The only problem is that’s a huge challenge just now.

Paul says the key is to buy within your means. “It’s a matter of not stretching yourself too far.”

You’ll also want to get as much help as you can, including any government incentives that are available.

But keep in mind that interest rates may continue to rise. “You don’t want to get to a point where you can’t service your loan,” Paul warns.

If it’s all too expensive, or if it’s an investment property you’re after, you might want to look elsewhere.

As Paul says, residential properties aren’t the only answer. “Prices are very high at the moment, but it doesn't mean the door is closed.”

He says another great option is to seek out a managed fund instead – for example, one that invests in commercial properties (like shopping centres) will give you access to the property market, but at a cost that fits your budget.

Being invested in the stock market is another issue again. With many existing shares experiencing high volatility recently, it’s hard to know what to do.

If it’s your life savings you’re dealing with, the best approach might be to hold tight and ride out any market turbulence. History has shown that your superannuation or investment portfolio will tend to recoup losses in time. 

If that’s not you and you’re still tempted to sell, Paul suggests considering the potential opportunity cost first – that is, what you stand to gain or lose if you choose one option over another. “We need to ask ourselves a couple questions first,” Paul says. “What will you do with [the money once you sell]? Do you have anything in mind that you could invest somewhere else for a better return?”

If you sell your shares, for example, you might benefit from a higher interest rate if you deposit that money in the bank instead. But keep in mind that you’re sacrificing any potential rebound in the share price.

For those in their 20s or 30s, or even 40s, it could be a good time to invest more money in the stock market, making the most of shares being relatively cheap.

Make sure you do you research first, though. “You don’t want to rush into it, simply acting on the advice of a friend,” Paul warns.

You also want to make sure you buy a variety of investments – a mix of shares and bonds, for example, from different sectors and even countries. Spreading your risk across different investment classes can help protect you from fluctuations in the market.

“It's very important to spread your investments as much as possible in order to protect yourself,” says Paul.

Crypto currencies are another issue again. While they’re incredibly popular these days, there’s no doubt they are at the speculative end of the investment spectrum – you might enjoy dazzling profits but there’s also a risk you’ll lose everything.

“People really need to ask themselves if they can afford to lose all their capital before getting into the crypto market. It is extremely volatile,” Paul warns.

Even if you do have some spare change available, he suggests considering your overall investment portfolio first, keeping in mind the profit you hope to achieve as well as how much you're prepared to lose.

Above all, “trade with discipline,” says Paul.

That’s not the only way to protect yourself. In these uncertain times, Yang is keen for people to keep their personal cover – whether that’s life insurance, total and permanent disability insurance or income protection insurance.

This holds true even if you’re looking to cut back your expenses. As Paul points out, “It might be the only certain thing you have.”

• Set a budget for yourself – and stick to it – even if that means thinking twice about what you buy.
• Review your financial plan (or get started on one), and make sure it meets your long-term goals and your timeframe.
  
• Find out about any financial incentives that could help you buy a home.
  
• Research any potential investments before you buy – or consider talking to a financial planner.
  
• Don’t sell any of your investments before you’ve first weighed up what it might cost you in the long run.
  
• Keep your personal insurance – it will offer you certainty in these uncertain times. It’s always a good idea to review it though to see if it’s continuing to meet your changing needs. Plus, there’s always the chance some premium savings can be made.
  

Talking to a financial planner can help you understand your situation and make confident financial decisions (big or small) so you can get the most out of life.