The cost of living is going high day by day in Kenya and Kenyans are finding it difficult to survive the tough economy. There has been ongoing increase in the prices of goods for the business people getting almost un affordable. Basic necessities like food are also getting expensive which have negatively impacted people’s quality of life. It is quite difficult for people to feed and afford the necessities of life, especially when the sources of income remain the same and in other scenarios is uncertain. The current state of the economy calls to individuals to take good care of the available income since money is pretty tight everywhere.
Many businesses are also closing down and those still struggling to stay in operation are forced to employ firm techniques to enable them survive.
It is normal regardless of how much money one earns to feel the effect of the changing economy and there is need to adjust. It is at this point one need to sit down and make critical decision that will help to maintain an affordable standard of living that matches his or her income. One has to consider responsible spending, avoiding unnecessary purchases and wise financial planning that help them overcome financial obstacles.
There are some of the practices that when considered may help them survive hard economic season:
Live within your means. Some of the lifestyle we get into it is only that we are capable of providing. It’s important to make deliberate efforts to lower your costs to make room for savings if one genuinely wants to live within their means and have financial security in a tough economy. To live within your means is to strictly adhere to your budget and make sure you only purchase necessities. At the current economic situation there is no need to purchase things that you don’t need. Spending less will help you save more money and prevent you from having trouble getting used to a new normal. It is more important to make decisions about your money that minimize the influence on your way of life while still reducing expenses.
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Negotiate your bills by finding ways to slash on your expenses. When everything’s prices are going higher it is important to keep the bill on check and see what can be reduced. If there bills that one can negotiate and be consider for relief, it will take care of the increment expected on some necessary items. Negotiating will help one on spending less on things you could buy for a lot more and when considered can end up saving.
Working with a spending plan. Sometimes it is very expensive to work without a guiding plan. A spending plan is the best to work with in this tough economy. It helps to keep your finance in check. A plan will guide and assist one in understanding how your money is spent and utilized. One can know how much money you spent on your needs and wants. Keeping track of your monthly costs will help you create a budget. It’s important to ensure one sticks to the laid down plan. In most cases budget and planning can help curb impulse buying and maintain emotional wellness of a person.
Develop Expense Tracking. A tracker for every expense is ideal for a tough economy. You can control how you spend money by keeping track of your expenditures. Expense tracking is very important especially a time like this when a large no of individuals are drowned in mobile app debts. You can learn more about how you came into a debt by keeping track of your spending. Expense tracking will then enable you to create an effective debt relief plan. A tracker helps you identify your priorities clearly distinguishing between wants and needs. When spending plan takes your income and expenses into account, keeping track of your spending every day enables you to stay within that budget.
It is good to seek an alternative side hustle. Most people have had a habit of being contented in one source of income. It is becoming difficult to rely entirely on one source of income to cater for the entire provision of one’s necessities. If one is able to engage in multiple income generating activities, it is very much advisable to do it to enable meet all the required financial obligations. With rise of job security so low these days, having more jobs increases income security which is very crucial for survival in a tough economy. Having several sources of income can be beneficial since you have other revenue sources to rely on if one source of income starts to decline or is completely removed. This also calls for skills development in individual to enable the only spend on what they cannot do. For activities that require skills they have, they can always handle without payments.
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Save for unforeseen circumstances. During the normal times people tend to be comfortable and only attend the current issues affecting them, but they rarely remember to set something aside for unforeseen occurrences. It is crucial to saving funds somewhere for emergencies. It is important to note emergences do come up and if not well prepared it may disorient someone’s lifestyle completely. Saving for an emergency will provide you with a safety boat to fall back on and get restored to your previous status. The same case applies when things turn thick and your current income cannot sustain your lifestyle. Saving for unforeseen helps you stand on your feet, regardless of whether you’ve lost your job, your business isn’t earning any money, or you made bad financial decisions. To ensure you have enough money to get through an unexpected event in a tough economy, try to save as much as possible early enough.
It is important to know we are living in tough times and we need to be prepared for any abnormality that may arise. We need to spend prudently and reduce financial stress that we may sink in if we are not careful enough.
By Dorcas Nyambura Ndegwa
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