Create a Realistic Budget:

It is really important to create a realistic budget and only you can make it. If you don't have a budget, create one. If you already have one, review and adjust it. Allocate more funds to essential expenses like housing, utilities, and groceries while considering where you can reduce non-essential spending. Using online budgeting calculators can be a helpful way to manage your finances post-pandemic. I used the Savings Calculator at calculator.me.

Prioritize Needs Over Wants:

Focus on covering your basic needs first. Prioritize essentials such as food, housing, healthcare, and transportation. Cut back on discretionary spending like dining out, entertainment, and impulse purchases. I set a 24-hour rule where I wait for 24 hours before making a decision. This gives me time to think it over and decide if it's a wise choice. This way I limit my impulse purchases and just prioritize our needs.

Build an Emergency Fund:

Having an emergency fund is crucial to handle unexpected expenses without going into debt. Aim to save at least three to six months' worth of living expenses in a readily accessible account.

Review Debt Obligations:

High-interest debt, like credit card debt, becomes costlier to carry during periods of inflation. Try to pay off high-interest debt as quickly as possible to reduce interest payments.

Automate Savings and Bill Payments:

Set up automatic transfers to your savings account and automate bill payments to avoid late fees. This ensures that you prioritize savings and don't miss essential payments.

Adjust Savings Goals:

If you're saving for specific goals like retirement or education, consider whether you need to increase your contributions to account for the diminishing purchasing power of your savings.

Practice Frugality and Smart Shopping:

Look for ways to save on everyday expenses. This month I am practicing minimizing my food delivery orders. I try my best to cook my own snacks, especially during midnight. And in terms of shopping online, I looked for voucher discounts, FREE shipping, and being mindful of price increases.

Explore Additional Income Streams:

Consider ways to increase your income, such as taking on a part-time job, freelancing, or starting a side business. Additional income can help offset the impact of rising prices. I continue to make my extra online streams on this blog and from my social media platforms.

The pandemic prompted me to become more mindful of my spending habits and learn to adapt my financial strategy to account for inflation. This will help maintain my financial stability towards my long-term financial goals.