Everyone is feeling the pinch of the high cost of living. Thanks to the near fiscal breakdown during the COVID-19 pandemic, the Ukraine war and high inflation. As the world tries to rampage through economic recession and progression, it will be some time before things return to normal.
You can only endure hard economic times by adopting financial survival tactics. These tactics will give you control. They will empower you to make healthy financial choices and make the most of the dollar. Read on to discover seven smart ways to beat the high cost of living.
1. Track Your Spending.
You can account for the money coming in and going out when you track your spending. It helps you reflect on your expenditure, budget, and earning capacity. You are also able to spot loopholes in your financial planning and management.
All you have to do is sit down with a pen and paper and take inventory of your finances. Be reflective, honest, and as detailed as possible. You can also use a financial tracking tool to help you get a clearer view of your spending. Sometimes, it’s difficult to take financial inventory. It is a triggering process, and some hard emotions may come up. Breathe through it—you will be just fine.
2. Create A Budget and Stick with It.
For you to achieve financial freedom, you need good budgeting skills. A budget keeps you accountable and disciplined with your money. It also allows you to explore and sieve through essential and non-essential matters in your life.
When it comes to budgeting, you must realize that every month is unique. So, you can’t use one budget plan from January to December. Additionally, use a budget planner to help you plan accordingly.
I can’t overemphasize the importance of sticking to a budget. Use the 50/30/20 rule: 50% for needs, 30% for wants and 20% for savings and debt. Ensure your expenses are within your income; otherwise, all the planning will be futile and a waste of time.
3. Cook More Meals.
If you really want to beat the high cost of living, cook more meals. It’s that simple. You wouldn’t imagine how much you could save if you didn’t eat out as much. A cup of coffee or lunch with colleagues may seem insignificant occasionally, but as an everyday occurrence, it will dent your finances.
So, draw up a weekly meal plan. You can use ingredients already in the house or make a shopping list of missing items. Only buying the missing items limits your need to overspend. This way, you save money and feed on healthier options.
Cooking does not have to be a dull experience. It is a chance to get your creative juices flowing. Therefore, plan your meals for the week ahead and factor in snacks and desserts. Also, cook your favourite meals. And have plenty of leftovers for evening snacking, which can trigger you to get some takeout.
4. Start A Side Hustle.
Do you want to beat the high cost of living? Make more money!! Period! A side hustle will complement your income and help you live better. You can also get to some of the things you had shelved due to financial constraints, like that trip to Bali.
Many online platforms offer remote jobs; you only need to sign up. Better yet, if you have a skill, you can monetize it and make extra cash. You can sign up to be an Uber driver, a copywriter, a virtual assistant, or a dog walker.
You can also babysit your neighbour’s or friend’s children for a fee while others will pay for your company and companionship; the options are limitless. Alternatively, you can transform a hobby into a full-time gig and make a consistent income.
5. Take Advantage of Discounts, And Special Offers.
Taking advantage of offers and specials is a skill that you must master if you want to survive the harsh economic times. The more money you can save on your expenses, the better. Besides, you still get high-quality items for half the price.
You can look for discounts when grocery shopping, like buying two cereal boxes for the price of one or paying your electric bill by a specific date and getting a 20% discount.
It’s essential to be frugal during hard financial times. Every coin counts, so shopping offers and subscription discounts are welcome. It’s nothing to be embarrassed about; it is what it is.
6. Cancel Unused Subscriptions.
When money is flowing in, we feel inspired. It feels like you can conquer the world. So much that you enrol in a gym and pay for a year’s subscription, knowing well you will never step onto the premises.
Similarly, you sign up and subscribe to every streaming service, and before you know it, you are incurring heavy expenses with your monthly subscriptions. Consider cutting off unused subscriptions, and you will save a lot of money.
Also, be very selective and intentional about services you are willing to pay for. Better yet, you can share some of the streaming services with friends and family so you cost share the subscription fees.
7. Enjoy More Free Activities.
Contrary to popular belief, you don’t need money to have fun and enjoy yourself. In fact, Sia was right on point when she sang that she loves cheap thrills! So, do more free things, and you will be amazed at what you discover.
Take a walk while listening to your favourite music or an audiobook. Make a fresh cup of coffee every morning instead of rushing to Starbucks. Ride your bike to work and save on fuel, or have a nice long bubble bath instead of a regular night out with friends. Be creative. Be curious.
Final Thoughts.
If you adopt these financial survival tactics, you will weather the storm. Hard times do not last, and this, too, shall pass. Better yet, you will develop tactics to propel you into early retirement and financial freedom. ♥
What other strategies have helped you save money? Share your tips in your comments!
Disclaimer: This post was originally posted on my LinkedIn page.
Mourine Warui is a media and communication expert and seasoned writer. Her goal is to empower and offer solutions to everyday girl’s problems while provoking candid and authentic conversations. Other goals are to provide inspiration and entertainment to readers through creative, thought-provoking and edgy stories.
