In 2020, Kenya recorded its first COVID-19 case and since then, the cost of living has really gone really high. This has also been attributed the ongoing war between Russia and Ukraine. But what exactly is Cost of Living?
Definition of Cost of Living
We have the basic needs and the wants. The basic needs are those that we need to really stay alive. These include: Food, shelter and clothing. Now, the amount of money needed to take care of these expenses defines the cost of living. It is good to note that the cost of living and wages are intertwined such that, if living in town A accrues more expenses than living in town B, then the wages or the salaries for the people in town A must be high for affordability.
Causes of High Cost of Living
Multiple factors contribute to high cost of living. These may include:
1. Climate Impact. Currently were going through a climate crisis and the globe is equally affected. The extreme weather events are really having a troll on us and the better we act the better.
2. Goods shortages. The closure of manufacturing industries especially during Covid got people struggling with the increased demands and shortage of goods. This saw the prices of commodities go up with some goods going for twice as much as they were previously.
3. Rising energy and petrol prices. In Kenya, the fuel prices have constantly gone up with the latest review by EPRA costing motorists about Kshs. 160 per litre. This is expected to rise in the coming months translating that commodity prices are about to rise even the more.
How to Decrease Living Costs
1. Being a minimalist. Living a simple life but with all the things you need in place has been known to be manageable. If you don't need an extra dress let that be it. Same applies if you don't need a bigger space.
2. Location. Living costs in some locations are way overboard than others. For instance, living in an urban area is more expensive than in the rural.
3. Cutting or fully eliminating some expenses. Those which are not a necessity can be fully eliminated or scaled down. For example, alcohol is quite pricey and is not a necessity. Therefore, you will not go wrong on getting to a strict budget.
4. Taking care of what you own. Be mindful of the little or the big things that you own. Valuing your assets or liabilities will make them serve you for long hence avoiding unnecessary costs of replacements or repairs.
5. Embrace the financial dieting theory. Sets targets on the amount of monies you want to have saved by the end of a stipulated time. This applies the same way we set maybe, how much weight we want to have lost by the timelines that we set.
6. Avoid eating out. Cooking your own meals is cheaper and sometimes more satisfying. Possibly, you can prepare enough for lunch and dinner and this way you will have saved on fuel and the energy that comes with making meals! Treating yourself once in a while by eating out, equally is not a bad idea.

Good piece
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