Surviving the Rising Cost of Living

Living today is becoming more expensive day by day. Tax increases coupled with world economic factors such as fuel and food will increase the cost of living significantly.

In this time of few salary increases and in some cases salary reductions, consumers will find it very difficult to meet their monthly commitments. Banks and other creditors will be under pressure to collect from their debtors which will limit the levels of available credit resulting in economic slowdown.

In my blog of December 26, 2011, I indicated that consumers have had to depend on short term financing, such as: – cash advances, credit card cash withdrawals, overdrafts and personal loans to remedy the situation and we have seen great increases in these demands since then.

This picture does not look good and can result in economic failure if not addressed. The solution will not come from the local Government or its agencies but rather from sacrifice and a reduction in our personal living expenses.

What to do to Survive

a) Create a realistic budget from past expenses (use our Xpense Tracker)

b) Track and review your expenses. If necessary, effectively cut spending to levels less than total income (use our Xpense Tracker)

c) Postpone the purchase of non-essential items and consider giving time instead of Christmas presents

d) Manage short term financing (including credit cards) closely with a plan to repay the outstanding amount without further borrowings.

e) Seek part time employment in an effort to meet all expenses and to establish a savings

f) Develop additional skills in order to improve marketability and an increase in compensation

g) Business owners should make all attempts to maintain the cost of the core goods for consumption which will allow low income earners to survive in the current and future economy


Spending should be linked to the availability of income and not to the spending habits of others. The Rising Cost of Living will reduce our disposable income and must be respected and addressed in order to survive. Remember the power of spending is in our hand.

Spend wisely.


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