How do you respond to a situation where prices of consumables are increasing against an income that is constant (inflation)?
I believe the best way to handle inflation is to increase your income by creating at least one more source of income. But where would the startup capital come from?
Inflation is not a barrier to saving a portion of your primary income. You create a significant startup fund by saving 30 percent of your primary income.
Don’t cut down on consumables expenditure (but don’t waste them) except for substitute goods. Does it make any economic sense to buy two things that serve the same purpose? I don’t think so. Therefore, reduce the amount spent on luxury goods and services (non-basic goods and services) by 30 percent.
For instance, reduce by 30 percent, the money you spend on;
1. Gas for your vehicle. Remove some unnecessary daily routine appointments from your itinerary. You should use the public means of transportation more and save some money,
2. Phones and other mobile devices. Most calls and other paid-for services on the internet are not necessary,
3. Entertainment and leisure. Cut down on the volume of your favorite beverage you drink daily. Reducing the daily intake of your favorite beverage and some food is enhancing your health and wellness.
I can go on and on but you are in a better position to create your list. Above all, operate within a budget and survive a period of galloping inflation.