How To Cope With Inflation.
More or less, everybody can feel the pinch of rising rates. According to experts, the inflation this year is so high, that the similar increase has not been recorded during past couple of decades. Being not prepared to deal with such a situation, people feel stuck these days. While global economy seems to be beyond our control but there are few actions we can take to manage personal finances and minimize the negative impact on our pockets.
Though there are three main steps , which if taken effectively will help you to go through tough financial times. I will explaining each of those in much detail, so that you don’t miss anything.
1-PAY YOUR DEBT
You maybe wondering that why am I trying to pull money out of your pocket whereas I am supposed to provide you with the ideas to increase in wealth or at least save it. Of course, there are some facts supporting my little piece of advice.
Let’s suppose you are earning 6% annual returns upon your savings but on the other hand have a credit card debt on which you pay annual interest rate of 18%. Though, return on your savings covers partly your variable debt, but still you are paying net 12% annual interest. Therefore, if you are in a position to clear out your debt , this must be the first action to take.
However, if you feel resistant to do so, thinking that if an emergency arises and you would need your savings. Then, just think that can’t you use credit card in such a situation? After all, it’s really uncertain that when and if ever you will be facing an emergency but the interest you are paying now and next few years is definite.
2-REDUCE EXPENSES
Though it sounds obvious to reduce the expenses during hard times but what is underestimated are the ways to do it. I will be describing the methods that I have used many times to overcome financial distress and they had always proved to be effectual.
Sort Out What’s Really Necessary.
Most people have budget for everything such that grocery, picnics, self-care, vacations etc. Consider reviewing yours. For example, reducing spa visits, taking kids to the nearest park rather than a long-distant attraction, cancelling recurring subscriptions, switching from post-paid to prepaid plans etc. Even don’t purchase anything which you do not need for next few weeks. By avoiding even the tiniest expenses, you will be surprised by the amount of cash you will have at the end of the month.
Avoid Throwing Parties Or Even Attending Them.
You maybe thinking, going to a party is not a bad idea during such stressful times. However, it maybe relaxing but on the cost of straining your pocket. If you are still willing to attend one, just calculate the cost fuel, gifts etc. Even getting yourself groomed will cost you extra money. So, staying at home and reading a book will be a much better idea.
Do Not Fall In The Trap Of “SALE”
Avoid visiting stores just because there is an ongoing “sale”. Buying items from sale is only smart when you actually need them now or in next couple of months. Whereas, buying a dress because it’s pretty and you will look gorgeous when you wear it some day, is not the wise thing to do.
3-INCREASE YOUR INCOME STREAMS.
There are methods, in fact plethora of them through which you can earn an extra income other than your salary. Setting up multiple income streams is becoming common practice these days. While most of the opportunities comes through internet, there are other ways as well.
Rent The Extra Stuff
Got a beautiful gown you wore on a friend’s wedding or else a stroller when your kid was a toddler? Look around for more such idle items and use them to earn some hard cash. Place a free ad on social media groups for renting your stuff on hourly or daily basis.
Sell e-books.
This must be very easy if you have a computer and an internet connection. In fact, you don’t need to be a professional writer or an expert in any specific field. You can easily write a book on any topic of your interest such recipe book, gardening tips and plant care etc. Even publishing an e-book is fairly easy and mostly free. For example, you can use Amazon Kindle to publish for free.
Teach Skill Online
Everybody have at least a single skill which he/she is confident enough to educate others about. Be it a make-up, crocheting, accounting, baking etc. There are a number of platforms available which you can use to your benefit such as fiver, upwork etc.
Above mentioned are few ideas to earn extra income. I will be writing a separate article detailing myriad of others.
BONUS TIP
I firmly believe that if I help people in their difficult time surely I will be helped during mine, even through another channel. What I mean is whenever you feel stuck financially, start making some charity. If you cannot share money, share your food or extra clothes with someone needy. Try this and you will not be disappointed.
