The prices of pretty much everything are rising. The inflation is breaking record after record. You might be lucky enough to have an employer that increases your salary or bonuses because of that, but even if you are, there’s no way the pay increase is proportional to the increase in prices and inflation.

Just like everybody else, you have a living standard and are working on maintaining or improving it. Unfortunately, now is not the best time to improve it, and because of the inflation, it won’t be easy to maintain it. However, with a few good decisions, you can handle all this economic volatility just fine. Here’s what you need to do:

Financial reserve

The road to financial stability is long, and there’s no better place to start than the beginning. It doesn’t matter if you’re earning minimum wage or millions – a financial reserve is a must! Experts recommend always having three to six months’ salary saved up.

With current inflation and rising prices of energy, many companies are shutting down. In case you’re one of the unfortunate people that lose their job, it’s much better to have some time to find a good place to work instead of jumping into the first free position you see only because you cannot afford to be unemployed for a month or two.

Some of you might not like it, but not earning enough to have a financial reserve is an excuse. It doesn’t matter how much you earn – you can always find a way to put 5 or 10% aside. Here are some ideas on how to do it.

Saving money on electricity

Firstly, don’t use anything you don’t need. There’s no point in keeping your computer on at night or leaving the lights on when you leave a room. It’s the equivalent of throwing money out of the window. Buy LED bulbs. Incandescent light bulbs may be cheaper, but they’re extremely inefficient. The LED bulb will last up to 25 times longer. In addition, depending on the quality, it consumes 75% to 90% less electricity.

Don’t buy things you don’t need during record inflation

Since you’re paying more for fuel, electricity, and food, some of your other expenses need to go down. Before you go shopping, make a list and divide it into “need” and “want”. Under need put all essentials that you buy to live comfortably. Under want write down expenses that improve your life, but you can do without them. Now cut out the “want” column and throw it in the bin. It’s much better to choose what you buy based on logic instead of emotion.

After you have a financial reserve and make sure you’re earning more than you spend, you can come back to the “want” section of the shopping list and reward yourself for a job well done!

Earn more and make up the difference caused by inflation

If you’re the type of person that cannot live without the items on the “want” list and constantly want to improve your living standard, you have to start earning more. It’s important to research the market to make sure you’re earning a salary that is adequate for the job you do.

We might not be experts in personal finances, but we do understand the labour market very well. We have been proving that for 14 years. Every month we help hundreds of people find a better job and essentially help them have a better life. When your car breaks down, you call a mechanic. When you get sick, you go to the doctor. Shouldn’t you also let a professional help you when it comes to one of the most important aspects of your life – employment? Work with professionals, success is not a coincidence.