We’ve all been through various Covid lockdowns, but are you prepared for the upcoming FINANCIAL LOCKDOWN?
What’s a financial lockdown?
That’s a great question. With the covid lockdowns, we sometimes weren’t allowed out. We were locked down at home. Easy to understand, right?
A financial lockdown is when we’re locked down at home because we can’t afford to go out.
I’m sure you’re all aware of how high gas prices have been getting. If you commute by car, this is likely already a disaster for you. Now add on the high inflation you’re experiencing for everything else you spend your money on. Many are already finding it difficult to make ends meet.
This means that they are locked down. They can’t go out to meet friends for a meal because they simply no longer have the spare cash for the gas to get there or for the food when they arrive.
This doesn’t affect everyone, but it’s sure to get worse.
Only today, Andrew Bailey, the Governor of the Bank of England, warned that the UK was facing its biggest economic shock for over 50 years. He said that both individuals and businesses will face a severe cost of living squeeze.
Meanwhile, the Office for Budget Responsibility (OBR) has said that the UK is facing its biggest drop in living standards since records began in 1956.
The OBR is a public body funded by the UK Treasury that gives an independent and authoritative analysis of the UK’s public finances.
In the UK, inflation is expected to peak at over 10% this year. It’s a similar situation in the US and many other countries.
It seems like we’re all doomed.
But there are ways to mitigate the crisis we’ve already started facing. Here are 5 things you can do, starting today.
#1 — Cancel any subscriptions that you don’t need
We all have monthly or annual subscriptions that we simply forget about. They seemed like a good idea at the time, but then we stopped using the service. However, we forgot to cancel the subscription. A few years later we realize that we’ve still been paying for the service every month.
A few days ago, someone I follow on social media said that he’d canceled his Audible subscription after not using it for 5 years. Wow.
Here are 5 subscriptions I will never pay for:
And here are 5 that I consider to be great value for money:
#2 — Earn more money
It’s great to be able to cut back on your spending and save some of that hard-earned cash. But sometimes it’s easier to just make more money. I like to have a combination of both.
There are many ways to make more money. If you’re reading this, then you might already know that you can earn money by writing on this platform. It’s not a quick way to make money, but you can build up some nice income over the months.
I’ve been writing on Medium for just over a year and have earned almost $8,000. I hope to reach $10,000 soon. This is a huge help to mitigate the current economic chaos. In fact, my Medium earnings have paid for my rent and utility bills this year. That’s huge. Click here to sign up for a Medium account and maybe you can also earn money from your writing. It’s only $5 a month.
#3 — Sell items you no longer need
This is one of the easiest ways to make some quick money. We all have stuff that we no longer use that’s taking up space in our cupboards, drawers, or garages. That stuff can be converted into cash quite easily.
I recently wrote a post about it that goes into more detail.
#4— Rent products for free instead of buying them
This is a neat hack that can be used for items that you may only need to use for a short period of time. You buy secondhand, use them, then sell them. Easy.
I wrote about it here:
#5 — Cook at home with friends instead of eating out
Many people do this even during good times. Invite some friends around and cook a meal together. It’s lots of fun and much cheaper than eating out.
I included it in a list of 11 ways to beat the cost of living crisis.
Use some or all of these hacks, and the cost of living crisis won’t seem so bad.
If you have any other tips, let me know in the comments section.
Also have a read of the following related article…