Cost Management in a Crisis

in LeoFinance2 months ago

A few months ago, I moved from a suburban town in Canada to a small town on the Egyptian coast. Cutting the cost was not the primary reason for the move but it was surely a positive consequence.

Over the course of 2020 I went from being unemployed to working as a food delivery driver, as a cashier, unloading trucks in the warehouse to managing a store department and now working in digital marketing remotely which is what I've been doing most of my adult life.

Remote work enables me to make more than what an average salary is in this Egyptian town, so comfortable living became more accessible. Now, is everything here great? No. The hygiene standards are different. The punctuality doesn’t exist as a concept. The Uber you order is sometimes a tuk-tuk. Many things that Westerners take for granted are not available at all. But it’s all about setting your priorities.

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I’m noticing that the people who now really feel the economic crunch & are mentally under a lot of pressure are not the ones at the bottom of the social ladder – those already know how to manage living on a budget – it’s the ones in the middle. They are having difficulties giving up some of the comfort if they want to survive. Many of them resort to naïve denial, thinking that the economic situation will eventually get better, but that’s just an assumption. No one can predict with accuracy how the next 5-10 years will look like.

I believe that these days call for a major re-evaluation of one’s lifestyle. To me, managing the cost effectively doesn’t mean an ascetic way of life, but rather:

  • identifying the important things that you’re willing to use the money on – in my case that’s good quality of food, comfortable sleeping and working environment
  • postponing larger purchases that add comfort but are not a necessity – for example using the taxis instead of getting a car or a motorbike, living in an apartment instead of a beachfront villa
  • giving up things that are draining your budget but you can easily do without – like dining in restaurants all the time, always having a coffee outside instead of at home, or staying in a country with a high cost of living
  • and cutting out unnecessary leakage – like always buying too much food and then wasting it because it goes bad before you can eat it all

The economic fallout of Cov-19 may be out of our control, but everyone has an option to adapt to the situation by anticipating where they’re headed economically and managing their spending accordingly.

I'd love to hear about your 2020 experience, what it meant for you economically and what have you done about it.

P.S. just a trivial comparison: this morning we bought a large cauliflower, broccoli, 6 tomatoes, 6 cucumbers, 3 bell peppers, 4 onions, 4 heads of garlic, all for $4. In Canada, $4 would get me 2 heads of lettuce at best.

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A lot of times you earn more with managing your money and saving than investing. And even sloppy plan is better than no plan.

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Very true. I often calculate this as a different weigh to generate a positive return by reducing loss...
Few people seem to grasp it though, and it is sadly undervalued.

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For he who does not adapt, dies, it's that simple.

And the truth is that getting out of the comfort zone can be one of the most difficult things in the world, it happened here in Venezuela when the crisis started in 2013 and many didn't get used to the fact that they had to live with less so many got strokes or suffered some kind of heart attack or depression because of the extreme worry.

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True, I just read recently that the levels of depression in USA went up 3x this just this year. I can only imagine how it was in Venezuela ...

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Horrible, i can only say that word.

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Hello
Welcome to Leofinance.
I enjoyed your post.
I can relate to the stress of this year, and the need or desire for a drastic reset. I am considering changing my lifestyle in a similar drastic way, but I have the comfort level of others to be concerned with also... so it’s not an easy decision to make.
But I like the theme and spirit of your proposal none the less.

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Thank you @shortsegments, I'm very excited about finally being a contributor on this platform rather than just a reader.
I'm sure it's much harder to apply drastic changes when you have a family and you need to consider how it will affect them. I'm lucky to share life with people who are usually a step ahead of me when it comes to being open to change.

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Geoarbitrage is the way for a lot of digital professionals.

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For sure, I think it will be more and more popular

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Welcome to LeoFinance 🦁

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Thank you @khaleelkazi! I've been on Steemit since 2016, then switched to Hive but I found the content on LeoFinance is really the most informative out of all three. Some posts are very good quality and they're explaining things on a level that a beginner like me can digest.

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Being resilient in those moments is very important.

I wish you the best, @penticton.

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Thank you very much @wiseagent. I couldn't agree more. What helps me most in developing resilience is training a positive outlook - focusing on things that go well & being grateful for them, acknowledging negative things and also being grateful to have that learning experience. Sometimes it's hard to be positive when things aren't going your way but worrying about things you can't change won't solve it either.

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I just came here and this is the first post I came across. I see you made a very critical decision but the points you made above cutting cost and exposes on certain things that aren't really necessary is a valid one.
Many often spend more than they should on things that aren't really important.
And imagine purchasing all those for items with the same $4 that would only get you 2 heads of lettuce in Canada

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