With recent events, the prices of everything have gone up. From raw materials to processed foods or even mortgage and fuel prices. Many products have seen exponential surges in their prices, some even skyrocketing by as much as 5 times their prices 6 months ago. Most people are unaware of what is really going on, but one thing everyone should know is that the price surges is not something that will end very soon. In a bid to “balance the books” and help the world economy recover from the pangs of the Covid-19 era, certain steps have and are being taken, by the power economies of the world, the biggest world banks, manufacturing companies and ports. To avoid the whole technical detail, what this mean is that we are in for the long haul. Let’s Buckle Up!
What should be on your mind is how to ensure that you survive this period while staying in control of their finances and this article hopes to teach you just that! These are some of the things you can do to stay in control of your finances in this period:
1. Proper Accounting:
The first step to take is to know exactly where you are on the Financial Tree. Just how much do you have? How much do you owe? How much do you spend on important needs alone? If you have a family, this is the best time to do this. To avoid accumulating unnecessary debt and being caught unaware, you must know where you are at the moment. If you are having difficulty with this, you can call a close friend who knows about accounting or looking for resources online that will help you take account properly. This will help you save some necessary cash by seeking a financial consultant.
Like I said earlier, this will be a long one. You have to replan your budget creating space for further price surges on basic amenities. What do you need? How much is it now? How much do you think you will need next month? You might need to do this every month as the prices fluctuate. But this will prepare you and keep you in charge and not caught unawares even when the prices change.
3. No Better Time Than Now To Save And Invest:
I know this will be a bit hard to do, but this is the best time to learn how to save and to keep investing, especially stocks. Avoid adrenaline pumping, risky and highly volatile investments that promise high yields. Stay with the more trustworthy companies that produce products for day-to-day use like, milk, diapers, multivitamins. I understand the temptation to tamper with your savings but do no do this. Take a drastic step of locking your savings away and making it an automatic withdrawal every month.
4. Start A Business:
Start a “side hustle”. Becoming an entrepreneur has its own advantages and one of it is that you become more in control of your own economy. It does not have to become something as fancy as buying a franchise. It could be a baby-sitting service, or a delivery service, or a little bakery in your kitchen etc. Convert your skills into money.
If you have a family, encourage everyone to start their own businesses and contribute to the family’s financial growth. Then, use the money from each person for something specific. For example, “Money made from Amanda’s swimming classes goes to paying the electricity bills.”
5. Sacrifices Have To Be Made:
This is the time to skip that extra creamy cup of coffee and donut at lunch, that second glass of wine on an outing, the impromptu ‘spendings’ at the mall. Sacrifices have to be made for the time being. Always have a list when you go out, necessities only.
You and friends could take turns in hosting one another in your houses and cook rather than going out several times and having to buy expensive meals out. You might have to start riding with a colleague to work to avoid spending on gas and public transport. Take steps that lighten the load, look for ways to meet your needs without spending and being too much of a burden to others.
These are not magic wangs that will automatically take all your financial problems away, neither are they easy to comply with. However, if you are disciplined to take the steps in this article, you will be able to stay in control of your finances to a large extent after some time. Buckle Up!