Last week, with the release of the March Consumer Price Index, economists started predicting that there would be interest rate rises this year.

This is in direct contradiction to their previous predictions that there would be cuts this year – which we’ve all been holding our breath waiting for.

The truth is that we don’t know and we won’t know until the RBA meets and makes a determination as to what will be best for the Australian economy as a whole.

So what do we do in the meantime?

We prepare.

If there are rate increases, what can we do to ensure we can continue making those repayments? Can we increase our income? Decrease our spending? Would it be worthwhile speaking to your mortgage broker to see if there is anything that can be done to either refinance or request a rate review?

If there are rate decreases, how would you be positioned to continue making the higher repayments that you’re currently making so that you can reduce the term of your loan? Or do you need a breather and will take the cut and pay the lower rate so you can build up some reserves again.

The one thing that I know for sure is that panicking about speculation, or even relying on it, does no one any good.

I have a very good friend whose favourite saying is one of Abraham Hicks – “Things are always working out for me”. So I’m going to stick with that one and stay in the mindset of solutions rather than problems. It keeps my mind open to possibilities rather than shuts it down through fear.

And for me, that works every time.

Because he is right, things always work out for me. I just have to make it happen.