HomenewsWebinar Series#1 How to Break Expenses Rising to Outpace Income

#1 How to Break Expenses Rising to Outpace Income

Today, more than ever, many people are concerned with (the cost of living), expenses steadily going up or rising and overshadowing income.  The effects of this have been felt deeply in Kenya with Gen Z rising against the cost of living, in the East African region and many other parts of the world.

Governments have significant roles to play but equally, citizens have fundamental roles to perform in dealing with this giant – cost of living. My article focuses on the citizen’s role.

Fundamentally, expenses rise because;

  1. Parkinson’s Law: This law followed a study that concluded that when you earn more money, your needs become more and you end up spending more money. We all need to be aware of this hard reality and not fall victim to it. There are several ways to deal with it. Read the free book; How to Break Expenses Rising to Outpace Income to get more insights into this law and the top ways to deal with this challenge.
  2. Lifestyle Inflation: This situation occurs when you adjust your lifestyle to include expenses you previously did not consider as priorities. For instance, when you get additional income such as promotion with salary and other benefits. A case in point is that you have been earning UGX 1,000,000 but your children were studying in government schools and you get a pay rise to UGX 1,500,000 and you make a decision to shift your children to a private school. What this decision does is that it introduces new costs. These costs may overwhelm the increment and you get into more financial struggles.
  3. Comparison: There is a “new disease” called comparison that has infected many people. A colleague sees his or her peer buy a car and he or she wants it too. And indeed, he or she struggles and gets it. However, the car comes with associated costs that end up eating up all the income putting the person into financial struggles.

Conclusion         

Be aware that expenses will always want to rise, resist lifestyle inflation, and stop comparisons in financial matters with your peers, follow your pace, please. In case you have not accessed How to Break Expenses Rising to Outpace Income, access it HERE.

For deeper insights into the matter, watch the video below and download the presentation.