We find ourselves in a time of global uncertainty, where we are confronted with various challenges such as the adverse effects of global warming, natural disasters like earthquakes and flooding, and the rising cost of fuel, among other calamities.
Everywhere we turn, we hear of conflicts, both real and rumored, terrorist attacks, and both natural and man-made disasters. It feels like the biblical end times, right?
In an attempt to make sense of it all, we constantly seek out news and information, following updates on Twitter (now X) and YouTube. Perhaps deep down, we hope that things will change or that gaining more knowledge will reveal that it was all a fabrication. The constant influx of information and the need to stay updated can leave us feeling weary and helpless. Our mental well-being becomes the next target.
Much as we at times assume that some of these occurrences are too far and do not directly impact on our lives, we've recently discovered that they actually do. The Ukraine war seemed like a distant matter but many governments have been affected.
Of course, we tend to feel these effects more when they affect our pockets - our bottom line. During these seasons, it is crucial to prioritize our mental health. We have the power to regulate the amount of negative news we consume each day and limit the time spent seeking updates. It is beneficial to incorporate positivity into our daily lives by reading uplifting books, listening to motivational podcasts and channels, or even acquiring new skills.
When faced with financial difficulty, it is important to maintain a positive mindset and to focus on what we can control. Below, we detail 21 ideas on how one can navigate the season.
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Create a budget:
Start by analyzing your income and expenses. Identify areas where you can cut back and set a realistic budget to guide your spending. Do you sometimes struggle to account for all the money that passes through your account? It tends to disappear in small unmonitored chunks, a small donation, an impulse purchase, a self-treat, and a friendly meet-up. And it seems like there’s a hole in your pocket. Having a budget and knowing your limit can help with this.
2. Cut unnecessary expenses:
Review your expenses and eliminate non-essential items or services. This could include canceling unused subscriptions, reducing dining out, or minimizing entertainment expenses. Minimize the social functions that take up your hard-earned money and only participate in those that add value to you or your income.
3. Shop smart:
Look for deals, discounts, and sales when shopping for groceries, clothing, or other necessities. Consider buying in bulk, using coupons, or looking for deals to save money. Minimize last-minute shopping, and as much as possible, plan for all your purchases in advance.
4. Reduce energy consumption:
Lower your utility bills by conserving energy. Turn off lights when not in use, unplug electronics, adjust thermostat settings, and consider energy-efficient appliances. Avoid unnecessary heating of water and use of the microwave. Seek other ways you can reduce consumption.
5. Cook at home:
Eating out can be expensive, so try cooking meals at home. This is a time to practice your culinary skills you always suspected that you have but have never proved yourself right or wrong. Try out your mother’s recipe.
6. Meal Planning:
Plan your meals in advance to minimize food waste and grocery spending. Use leftovers creatively. Plan your meals in advance, buy groceries in bulk, and explore affordable recipes.
7. Use public transportation or carpool:
If possible, consider using public transportation or carpooling to save on fuel costs. This can also help reduce wear and tear on your vehicle. If you’re able to walk or cycle, it’s a good way to add some exercise to your cost-saving.
8. Negotiate or downgrade bills:
Seek out better rates or a downgrade of some services, such as internet, cable, or insurance companies, as you explore alternative options. Loyalty discounts or promotional offers may be available.
9. DIY projects:
Instead of hiring professionals for certain tasks, consider doing them yourself. This could include basic home repairs, gardening, or even simple car maintenance. You could invest in a home garden and grow your own vegetables if space allows. Saves you some grocery shopping.
10. Prioritize needs over wants:
Distinguish between essential and non-essential purchases. Focus on fulfilling your needs first before indulging in wants or luxuries. Only indulge in luxuries after all needs have been fulfilled, and even then, do so cautiously.
11. Explore alternative entertainment options:
Instead of expensive outings, look for free or low-cost activities such as hiking, picnics, local community events, or visiting libraries. After all, the best things in life are free. Hiking and picnics give you a genuine way to bond with your friends and others, unlike movies which make us more anti-social.
12. Downsize Your Housing:
If feasible, consider moving to a smaller or more affordable home or apartment. This depends on the gravity of your circumstances. Instead of insisting on keeping a façade you cannot sustain, sometimes it might require that you ‘swallow’ your pride and take the humble pie, even if just for a season until you’re able to get back.
13. Sell Unused Items:
Declutter your home and sell items you no longer need to generate extra income. Over the years, you amerce items that you outgrow as a family but still keep them. Baby cribs, strollers, wooded items, etc. Sell them and get some income from them.
14. Limit Travel:
Cut back on vacations and travel expenses, or opt for budget-friendly travel options when you do go on a trip. At times it’s not about where you travelled but that you took time to spend together as a family or as loved ones. The effect is the same.
15. Health Savings:
Explore generic prescription medications and take preventive health measures to reduce medical expenses. Eat healthily, cut down on sugar, increase vegetable and fruit consumption, and reduce on processed foods and processed meats. Eat traditional vegetables and breakfasts, by replacing your breakfast boxed cereals with healthier cheaper options of sweet potatoes and boiled maize. Your health will thank you for this.
16. Avoid or reduce your High-Interest Debt:
Pay down high-interest debt as quickly as possible to minimize interest payments. As you keep your eye on your expenditure, try to reduce as much as possible on your debt, starting with the high-interest debt.
17. Financial Counseling:
If you can, seek advice from a financial advisor to develop a tailored plan for your financial situation.
18. Invest Wisely:
If you have investments, review and adjust your portfolio to minimize risks and maximize returns. This might not be a season to put all your investment in high-risk investments, despite the high returns. Spread out your risk.
19. Stay Informed:
Keep up-to-date with economic news and government programs that may offer financial assistance or relief. We tend to focus on the negative aspects of everything, but if you look hard enough, there’s always information that can help you navigate out of this bad situation, you just need to be alert and focus on the right things.
20. Side Income:
Consider a side hustle or freelancing to supplement your income. Start that business you’ve always wanted to start on the side.
21. Delay Major Purchases:
Postpone major expenses like buying a new car or remodeling your home until your financial situation stabilizes. This is not a time to get a new mortgage or loan for a car. Your furniture can remain as is for a little longer.
Remember, it's essential to adapt these ideas to your unique circumstances and priorities. Reducing expenditure often involves making difficult choices, so focus on what aligns with your long-term financial goals. Remember, these are just suggestions, and it's important to tailor them to your specific situation and priorities.
