Inflation: a sharp rise in prices of goods and services.
Recession: Low economic activity i.e. low demand, low supply, low employment rates
Buyer Frustration — The Tight Spot
The worst thing that can happen to an ordinary buyer is finding out that previous products/services have almost doubled. What do you do? You already know your wage or salary won’t double up too. Also, your work hours don’t decrease either. At least, you would spare some for a second job. But that’s not happening. Is it?
Once a person is caught up in this tight spot, in which the cost of living is rising faster than their income, they become financially frustrated. Such frustration boils up to spill all other forms of stress and lifestyle chaos.
While inflation slows down the buyer, recession, on the other hand, stops the buyer. With pricing prices, a buyer can still afford to pay for some of the things on their list of needs. Contrary to that, with a recession, the buyer might not even have the means to earn a little income. Low economic activity kicks people out of their jobs, out of their wages and salaries, and unsustainable factories and businesses shut down.
As with all problems, there’s always a solution.
Don’t swim against the tide
When the tide is heading north, you can’t swim heading south. You get crashed, with a risk of drowning. Therefore, if prices are increasing uncontrollably, cutting down your expenses is the first solution. When cutting down expenses, you begin with unessential products and services. The things you can do without.
On your long list of needs and wants, cross out all wants. Then reduce the percentage of needs you pay for. Each according to how urgent and important it is to your survival and thriving.
Reposition your lifestyle
Understandably, if you’ve been living a lavish lifestyle. High-class everything, it’s time to readjust according to the pressure of the financial situation around you. Consider moving to a less expensive neighborhood. Paying high rent is the worst hurdle when dealing with inflation and recession. The secret is in not paying at all. If you can find a way to redesign your lifestyle in this manner of less pay or no pay, you definitely gonna make it through the worst of all financial collapse.
more to follow…