In Botswana, the rising cost of living is putting a strain on households, impacting everyday expenses like fueling your vehicle or grocery shopping at your local store. Mirroring global trends, essential commodities have seen a year-on-year increase of 7.2% across the OECD. Unfortunately, the consensus among experts is that these prices will continue to rise in the foreseeable future.
So, how can you navigate the challenges posed by the increasing cost of living in Botswana? Here are 12 essential strategies tailored to this unique context:
1. Explore Opportunities to Boost Your Income:
– Enhance your business’s profitability (don’t hesitate to consult with us for advice on improving your business’s financial health) or negotiate a pay raise.
– Consider taking in a boarder or flatmate or co-share a house.
– Utilize online platforms such as facebook or WhatsApp groups to sell items you no longer need.
– Start a backyard to grow simple low cost vegetables and fruits. You may sell off any excess to friends and neighbours.
2. Implement Cost-Cutting Measures:
– Prepare more meals at home to reduce expenses on dining out at cafes and restaurants.
– Create and stick to a budget to maintain control over your spending.
– Reduce meat (or any other high value items) consumption, which can be a significant part of your grocery bill.
– Find ways to minimize your car usage. E.g plan your routes carefully or a shared car.
– Consider canceling credit cards and buy-now-pay-later accounts.
– Review all your ongoing expenses, including utilities, insurance, and subscriptions; consider canceling, switching providers, or negotiating better deals. Consider cutting down on your entertainment budget.
3. Invest in Your Financial Future:
– Explore investment opportunities with a historical track record of outperforming inflation, such as shares and the property market.
– Consider starting a new business, launching a new product or service, or exploring a side hustle.
– Educate yourself on financial matters using readily available online resources and books from the library to improve your money management skills.
– Enroll into an entrepreneurship mentorship course. Contact us if you need assistance on this.
If the inflation rate for the year stands at 7%, matching this increase in your income won’t be easy. However, if you can boost your income by 5% and offset the remaining 2% through savings while also investing for the future, you can still come out ahead when inflation stabilizes, and prices level off.
Feeling concerned about your financial situation? Don’t hesitate to reach out to us. We have years of experience in navigating various economic cycles, including periods of high inflation. We are here to provide assistance and guidance to help you secure your financial well-being.
