Our life has to have a plan, elders taught us while growing up. But nobody told us that plans can only work in a climate of stability. The circumstances that the world witnessed in the last few years were certainly extraordinary. Aside from the pandemic which locked down and isolated most parts of the globe, the Russia-Ukraine war erupted just as recovery was within reach. Numerous disruptions to the supply chain can be blamed in part to the runaway inflation we are experiencing right now. Everyone’s plans have been turned upside down.
We can dispense a few tips on how to deal with the hard times, and most of them are very doable. Here they are:
– Closely scrutinize your monthly bills. What subscription can you do without? Maybe you don’t need an extra streaming service. How about taking up on the competing offer of another internet service provider because it’s cheaper yet offers more bandwidth? When trimming your budget, erase the reasoning that “it doesn’t cost much anyway.” Every cent counts on the way to saving up.
– Food easily tops most people’s expenses, especially if you factor in dining out. Make the time (and effort) to prepare homecooked meals. Research and compare prices between the different shopping venues. Is ordering fresh produce online cheaper than going to the supermarket? Then don’t hesitate to make the switch.
– Explore technology and the different apps to maximize savings. When shopping, learn all about using cashbacks and the different vouchers. Last week, I found out how easy it was to open a digital bank account with the cashless app on my phone. In fact, I was able to open two bank accounts in a matter of days! They have no minimum opening amount and no maintaining balance, whereas fees and penalties would cost you a lot in traditional banks. The best part is the higher interest offered which was 6%.
It was a coincidence that I also found this site called Savings Calculator . org I thought this was very helpful since digital banks were “faceless” and could not answer questions I have about compound interest and the like.
The online calculator just let me enter the amount for deposit, then I also need to input the bank’s interest rate and how long the investment period is for. If I fill in all of the tables, it will tell me the Spending Power of my savings after such factors as taxes and inflation rate are taken into consideration.
Here’s what the site looks like –
– The bad news is that we might have to work harder than ever to catch up with the spiraling prices. Tune your hustle radar to the fullest. The good thing is that we live in an era where it’s possible to earn online while doing a 9-to-5 job. For example, you might be the office marketing guy but you have an online store or are a content creator outside of office hours. Times are hard and having a second job might be the norm rather than the exception.
If you like to look at the Big Picture, the retirement in the Savings Calculator site provides the answer. If people were provided this tool, then they wouldn’t party so hard on weekends. I can tell you now MUCH is needed for retirement, especially if you take into account inflation (again!) No wonder, some people never leave their office desks until they’re 65.
Anyhow, it’s always beneficial to be educated about these things rather than leave it up to the government to hand you a pension.