Adjusting To Today’s Cost of Living

Managing money nowadays is pretty difficult, even for the savvy. With the cost of living going through the roof and most wages remaining stagnant, many of us are beginning to feel the strain. This is nothing to be embarrassed about following a worldwide pandemic. Of course we don’t want to have to struggle on a day to day basis, so if there ever were a time to flex frugal money management and thrifty spending skills, now is the time - especially when it comes to maintaining a good quality of life. Here are a few tips that can help manage money as best possible during these tricky times.

Stick to a Budget

No matter your income or net worth, a budget is crucial. A budget is simply a tool that tells you how much money you have available each month, what bills and other essential outgoings need to be deducted from this and how much you have left over to spend. Knowing your disposable income will help you to avoid overspending, which can cause debt which can be difficult to dig your way back out of. Once you’ve figured out your budget, stick to it.

Use Credit Wisely

Some of us may find that we need to use credit to purchase certain things right now. It’s absolutely essential that you only make use of credit wisely or for absolute necessities. There’s no point digging into debt for something that’s not a dire need. Making sure that you’re getting the best deal when you sign up for credit for the things that you do absolutely need us also crucial, as well as interest rates on cards, and points options. Weigh up the importance of what you’re buying. If you need to pay a medical or veterinary bill, if an important household appliance has broken and you need a replacement, or your car is having issues and you need it to get you to your place of work, these are all examples of times that you may need to use credit. In these instances, you can compare credit to determine the best deal out there. Look for low interest rates that are manageable and that will allow you to pay back the money you owe without too much difficulty.

Cut Costs Where Possible

To maximize disposable income, cut costs in regards to the bills and other agreements where possible. Sure, we may not be able to cut essentials out entirely, but chances are, there are cheaper options where we can try out to save in the long run. Use price comparison sites to compare the rates of things like car insurance, home insurance, pet insurance and life insurance. Switch to lower cost providers offering the same services and perks. You can also try shopping for in-store unbranded foods, rather than big name brands. Or even better, grow some of the less water-needing produce yourself, buy in-season produce only, or opt for subscription boxes that offer discounts for imperfect looking produce.

KEEP INVESTING

If you can swing it, keep investing, even though the markets are volatile AF. History proves that continuing to invest for the long term right now will still yield a strong return. Set up auto-investments for what your budget allows, and then forget it altogether. Your future self will thank you…

These are just a few starter steps that can help to manage money a little better during these difficult times.