5 helpful tips for navigating the tough economic times
Prices of basic commodities like cooking oil, cooking gas, milk and ugali flour, have recently increased despite the fact that financially there is nothing increasing in the consumer’s pocket. While
Prices of basic commodities like cooking oil, cooking gas, milk and ugali flour, have recently increased despite the fact that financially there is nothing increasing in the consumer’s pocket.
While you have to work with the amount that you have, financial advisor, Shem Murunga advises you to avoid unnecessary expenditure.
In an exclusive interview with Parents magazine, Mr Murunga further said it is important that people adjust their finances by only buying what they need at the moment. Here are some of the cost-cutting tips that he shared:
Have a budget
There must be a budget and you have to plan for every expenditure that you need based on the finances that you have. This is the key thing that will enable you to go through this time.
Buy from wholesalers
Do your research and find out where retailers get their products then shop from there. When retailers have gotten their products and brought them to the retail market prices shoot up.
Assume you want to buy something like vegetables, for example, this is the time to go directly to the market where the farmers bring them, there you will get them at a cheaper price.
You have to plan and do an estimated cost for every item that you need so that even when you are going to the wholesaler you are able to know the amount of money you will spend and how much you will be left with. In case of anything extra, you can use the money you saved.
Kitchen consumer budget
You need to be keen in the kitchen as there is usually a lot of wastage. Be keen on how you are using food items to minimize wastage. The consumer budget is taking the bigger budget of our earnings so once you mitigate that and make sure you have closed all the loopholes as far as expenditure is concerned, you are able to survive through this time.
Give children only the necessary
When kids are at home there are so many things they ask for which are not very necessary because they can do without them. Start by giving your children the basics which include food and education and minimize luxuries like premium entertainment subscriptions. You can also minimize or do away with snacks. As long as the children have healthy and nutritious food, there is no need for snacks.
When dealing with kids, explain the situation to them and make sure they understand then introduce the changes gradually. Sudden extreme changes can cause behavioural issues in children.
While we remain optimistic that things will get better in the near future, it is important to make wise financial decisions and use whatever tips we can get to comfortably navigate the tough economic times.