There are many helpful living tips I've learned over the years, which have greatly benefited me. From my personal experience living in different places, I realized that it's not where you live that matters, but how you choose to live. While inflation and economic hardship issues affected everyone, especially during the 2019-2020 pandemic, it's important to remember that there were still people that were living comfortably even under the hardship.
At some point, the pandamic served as a safe haven, allowing many of us to avoid daily expenses such as transportation, fuel, clothing, accessories, dining out, and more. However, its adverse impacts were later felt globally. During this time, many world economies and individuals engaged in a blame game, attributing their already struggling economies solely to the pandemic.
Unfortunately, I don't see things subsiding aftermath the pandemic as the prices of goods and services continue to rise. But if we learn to live wisely, I believe we can avoid some hardships. Even though times are tough in several places, by adhering to financial management skills, we will be able to live the kind of life we want and live it well.
Firstly, It's crucial to align your income with your expenses before spending a dime. Most people spend before they even create a budget; which serves as a roadmap for spending, saving, and investing. Without a solid budget, no amount of money will be enough for your needs and wants, and no living condition, however luxurious, can guarantee a satisfying life. Making budgeting efforts helps you in setting financial goals which is very crucial for life.
Budgeting means knowing where your money goes and keeping track of it. Some people claim they don't know where their money goes after receiving it, but this often stems from a lack of proper monitoring and tracking. I once considered a £20 mobile bundle with unlimited data, calls, and SMS, while also opting for a £29 monthly full fibre broadband plan to use at home. Daily internet usage necessitated this.
However, upon reflection, I realized the unlimited package was unnecessary. I had access to WiFi at school and work, and rarely used my mobile data at work. Why pay £20 when a £5 mobile plan with even more unused data was also an option. By tracking these expenses and choosing lower-cost options, I saved £15. Many of us have a number of subscriptions that often consume our income, even though we rarely make the most of them or consider them essential. Doing a thorough analysis and monitoring can help identify areas where you could reduce some of your expenses.
Moreover, identifying your needs and wants is key to effective budgeting. Some things, like food, water, electricity, and gas, are essential, while others are non-essential (wants) you can forego. Prioritizing needs allows you to save money and plan for wants that can be temporarily put aside. For some, their wants often take precedence, for instance some people first reward themselves extravagantly upon receiving their monthly incomes before considering a budget. Putting wants before needs often results in the need for additional income to cover excess expenses.
Furthermore, a lifestyle inflation is another thing to avoid. When your income increases, the temptation to increase expenses also rises. As humans, we tend to adapt our lifestyle to our income level. While it's natural to enjoy some benefits of increased income, avoid the temptation to add unnecessary expenses. There will always be unavoidable expenses when your income rises, but managing them well prevents overspending and allows you to save for a more fulfilling purposes.
I reiterate that it's not where you live that matters, but how you choose to live. By making smart financial choices, we can all live well, regardless of our situation. we can find happiness and fulfilment regardless of economic conditions. However, achieving this requires recognizing the economic realities of our environment and devising ways to thrive.