10 Tips to Survive The High Cost of Living in 2022

Pamela Kaguri

Inflation has been experienced in the world recently and the price of basic commodities has risen by 100%.

However, your income still remains the same. Maybe, you have lost your income due to prevailing hard economic times. Or your business is not doing well.

For you to provide the basic needs fully, you need to look at various ways of cost-cutting. One way is to use a budgeting app, if that is’t your strength. Granted, the  tips below will help you on how best to manage and handle your finances.

1. Have a budget 

A budget will help you know how much you are to spend either weekly or monthly on your bills such as rent, fuel, groceries, and other utilities such as electricity and cable bills.

It helps you track your expenses and see how much is left. Always stick to your budget.

2. Get  out of debt

Bad debt is derailing and can stress you, especially now when the cost of living has skyrocketed.Try as much as possible to clear your bad debt so that the installments you pay monthly can be channeled to your household budget and savings.

It is also cheaper when you repay your loan earlier than the expected time. The interest is usually lower.

3. Differentiate between wants and needs

Learn to only budget for needs. These are shelter, food, clothing, education, and other household utilities like gas and electricity, and insurance. That music system, sleek car, flashy phone, etc can wait.

That expensive outfit can wait as long as you have clothes. You can take that vacation next year, or when things get better.

4. Downgrade

If you have lost your income or your business is not performing well, you can downgrade. Move to a cheaper neighborhood, park your car and use public means or you can carpool with your colleagues and cut down the cost of fuel.

Stop attending those high-end restaurants and clubs. I know it is hard but I try. You don't have to mind what your friends or colleagues will say. In the long run, this will help you to save big time.

5. Shop in bulk

Get to shop in bulk and take advantage of economies of scale. Most wholesale shops sell their products at a fair price compared to retail shops. 

You get to save big time. You can also join hands with your friends and neighbors and buy stuff wholesale then share.

 

6. Buy refurbished instead of new

You see that phone, laptop or sofa? Yes, you can get a refurbished one at a lower price than a new one that will cost an arm and a leg. 

A refurbished item will serve the same purpose as a new one. Now that the cost of living is high, let's normalize going for affordable products though they might not be new.

7. Kitchen gardening/balcony farming

Plant your vegetables if you have a garden. Even if you don't have your garden, balcony farming is possible. This will enable you to produce your own organic vegetables and fruits. These are also free from pesticides, meaning they are healthy. This will save you the money you have used on fruits and vegetables.

8. Get a side hustle

Get a side income, apart from your regular income. This will give you an extra income that will go to sorting your bills and even saving.

Some of the side hustles you can engage in are; do consultancy in the field of your expertise, you can do delivery and run errands for people, start selling online or do drop shipping, etc.

9. Buy generic

Most generic items are as good as the brand names. Most of them are even made in the same factory.

Buying a brand name will cost you more than buying the generic. They. both serve the same purpose and you end up saving some money and settling other bills.

10. Take good care of your stuff

Have your car change oil regularly, and service it when it is due. Trust me, this will save you money in the long run.

Get a skin protector and a strong case for your phone. In case of a fall, then you can salvage it and save yourself the trouble of buying a new one.

Get your fridge checked and maintained, this too shall apply to other electrical appliances in your house that require regular maintenance. Trust me, you will save a great deal.

In a nutshell, trying to survive and at the same time live a quality life is key in these hard economic times. Any logical tip to help with cutting the cost of living should be embraced. 

Taking good care of yourself even as you cut costs can be really helpful. Get enough sleep, avoid drugs and excessive consumption of alcohol, go for a regular medical checkup and mind your mental health.