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Inflation has been threatening the world since 2019, the pandemic had brought our world to a standstill. With things easing up on the pandemic front most of us hoped to see a better 2023 but if financial predictions are anything to go by 2023 seem to be a very tough year financially for the whole world. With purchasing power of the common man falling and cost of living rising sky high we need to learn to adapt to our present situation.
Waste not want not has always been the principle our family has always lived by. My dad taught us to value money at a very young age. We needed to account for every cent we spent. Lavish spending and excessive buying were unspoken of in our household even when there was enough.
Saving has always been a way of life for us Indians. In our culture I remember women in many households would put away a handful of rice or cereals from their daily cooking rations into another container as a backup for the month end when money ran out. This amount of saved food grains would ease the food bill for the coming month and this would be a saving for the woman who did go out to earn.
In our culture we save for the education of our children, the marriage expenses of our daughters, our future and our medical bills. This comes naturally to most Indians who still think and act traditionally. You could say saving runs in our veins. Among the Hindus community there is also the practice of buying gold during certain festivals as an insurance of sorts. This was done as a tradition when the concept of insurance was not very prevalent here.
Personally I live a minimalist life. I only spend on what is absolutely essential. Clothes, accessories, home-decor and stuff has always been the last on my list. I only buy what I need for a month, never more never less. I also ensure that I buy from stores which offer me a good deal. I make a list and stick to it, never straying around to grab everything I fancy and fill my trolley. I have seen food wasted when bought in large quantities. What I buy for my household is planned, estimated and bought based on need alone.
The concept of reduce, recycle and reuse has always been applied to almost everything at home. Food is always cooked in small quantities or if there are leftovers I find a way to give it a fresh new appetizing feel so consumption is not a problem. Bedspreads which has become faded are turned into doormats, ironing board covers etc.
Home rent has been climbing steeply over the years so we decided to take out a loan to buy our first home, things were very difficult at first but it trained us to live within our means by planning and budgeting smartly.
We had to buy a bigger home as the boys grew up and needed more space. We planned for it as soon as we paid off our first mortgage, our second home was also bought with a loan but the rent from our apartment did ease our burden a bit. When the hubs retired from service we paid off the mortgage on our home so we remain debt free and at ease in our advancing years.
Planning for our future helps a great deal whether there is inflation or not. Both our boys went/go to medschool and we never had to take educational loans. Loans seem like the right answer to our problems and they seem to ease our financial burden instantly, but at times like these when inflation soars and cost of living skyrockets these very same loans become a huge burden to us.
Another principle we have always adopted is never to use our credit cards unnecessarily. We have one for emergencies and overseas purchases, but this is barely put to use. We pay for everything with our debit card, (when I say we it means the hubs and I) so we know how much we spend and stay well within our limits. The whole family needs to be of one accord when it comes to budgeting and handling of finances.
We do most of the chores on our own, we do not depend on handy workmen for everything which is a common practice here. We invested in a good tool set in the first few years of our marriage and this has come in handy in tough times such as these.
Less is more is another policy we follow. This applies to food, grocery and general supplies. A little less washing powder hardly makes any difference, a little reduction in cleaning supplies hardly makes a difference, yet these little drops do add up in the form of savings.
With energy prices shooting up like crazy we hard take the car out these days, we walk or take out our bikes. We have reduced the number of times we use our washing machines from 6 to 4 in a week. The a biggest energy gobbler is our water heating system . previously we didn't have a thermostat on it and the boys just let the water heat up until they were ready, now the heater stops when it reaches the required temperature. All these measures has reduced our energy bills considerably.
When we pay heed to small things which seem insignificant at first we cut down on cost greatly. Penny wise pound foolish is the well known saying, but I guess when we pay attention to the pennies we learn to control the pounds in our bank accounts.
Big purchases and payments may often be impossible to cut down, but it is well within our power to cut down the everyday expenses. These spending happen more frequently and make a bigger hole in our pocket without our knowledge.
Practice makes perfect. When we learn how to handle money correctly and learn to live within our means it becomes habit that is ingrained in us. We never feel the pinch when we face rough times financially. Having said all this it is important to state that we always plan for fun days and special times as a family, we no not deprive ourselves of anything but we do live wisely.
Being smart is not about being stingy but it is all about understanding the times we live in and adapting to them. Be safe than sorry, spend wisely and live within your means, save for a rainy day are some good principles to follow in times such as these.
This is my response to @joanstewart 's second question about inflation and how I deal with it at a personal level. Thank you for this thought provoking question, it was fun participating
in this challenge and sharing my experience here.