Mika
VIP Contributor
When the inflation is high, you still need to pay your rent/mortgages, you still need to buy food and other essentials, and you still need to pay taxes. Sadly, when there is inflation, the value of your money substantially goes down, in order to maintain your lifestyle you have two options:
Allot more money on your expenditure budget
Cut your expenses and maintain your life with the same expenditure budget
Inflation does not increase your income in fact, you might even experience a pay cut (because the companies are not making as much as they were making previously). So, allotting more money into your expenditure budget is not a good strategy. You will have to cut expenses.
During inflation, you also need to look for ways to make more money. How can you do that? Well, learning a new skill might help you.
During inflation, you will have to completely cut your luxury budget, you will have to wait to buy a new phone, and you will have to wait to go on a vacation.
Allot more money on your expenditure budget
Cut your expenses and maintain your life with the same expenditure budget
Inflation does not increase your income in fact, you might even experience a pay cut (because the companies are not making as much as they were making previously). So, allotting more money into your expenditure budget is not a good strategy. You will have to cut expenses.
During inflation, you also need to look for ways to make more money. How can you do that? Well, learning a new skill might help you.
During inflation, you will have to completely cut your luxury budget, you will have to wait to buy a new phone, and you will have to wait to go on a vacation.