The global economy is currently facing a significant rate of inflation. This isn’t just a headline; it’s a daily reality that impacts your income.
Prices of goods are rising, rents are increasing, and owning even a small property has become a luxury that many can no longer afford. Inflation has made paychecks feel inadequate, as they no longer stretch as far as they used to. But don’t panic, you are not alone.
Despite these challenges, there are practical strategies you can use to take control of your finances. In this post, we will discuss simple budgeting hacks specifically designed for high inflation times that you can start implementing today.
Understanding Your Spending Patterns.
In 2025, many of us still struggle with managing our finances. Why? We tend to spend wildly and get caught in the web of inflation. To avoid these issues, there are several strategies you can use.
First, consider investing in budget-tracking apps. These user-friendly apps help you track your expenses and monitor how and when you spend. Some popular options include GoodBudget, Cowrywise, and PocketGuard.
However, if you prefer traditional methods, the next tip is to prioritize needs over wants. Regardless of whether you earn daily, weekly, or monthly, it’s essential to differentiate between your needs and wants and know when to buy and when to save.
Prioritizing your needs over your wants helps you stay on track and save money. A useful framework for this is the 50/30/20 rule, which divides your income into three main spending categories:
- 50% for Needs: This includes essentials such as rent, utility bills, groceries, and transportation.
- 30% for Wants: These are non-essential lifestyle choices, including shopping, subscriptions, and entertainment.
- 20% for Savings and Debt Repayment: This portion is for your financial growth and security.
For example, if you earn ₦200,000 monthly, you could allocate your income as follows:
- ₦100,000 for needs
- ₦60,000 for wants
- ₦40,000 for savings and debt
You can adjust these allocations based on your specific income.
Additionally, various e-banking platforms, like PiggyVest or Opay, can help you save your money effectively.
Smart Purchasing Strategies
If you want to save money, consider buying in bulk, whether it’s food, non-perishable items, or household supplies. Bulk buying can help you plan ahead financially.
Be cautious about the numerous digital subscriptions that can drain your expenses. Instead of maintaining multiple subscriptions, consider rotating your streaming services to save costs.
For single individuals, cooking more at home and reducing food waste can also be very effective. Preparing meals at home generally costs less than dining out.
Lastly, explore side hustles or passive income opportunities, such as freelancing, online tutoring, selling digital products, writing, or content creation. Regularly re-evaluate and adjust your budget during monthly check-ins.
In Summary, to survive in this ever-increasing inflationary environment, it’s crucial to save, cut down on wants, invest more in your needs, and decide wisely when to spend and when to save.
Spend smartly, don’t rely on a single source of income, follow these tips, and watch your finances improve!
