Budgeting: A Strategic Shield Against Inflation

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A budget is essentially a written plan for how one spends their income on expenditures, which can be on a weeklymonthly, or even yearly basis. A person living on a budget will have a ttle resistance to the influence of the growing inflation rate.

A person who draws a up budget knows exactly what hethey spendn what ondailynd is better suited to knidentifyhat expenses to cut ofen there is a need to do so. There are basic needs that we might have nothing we can do about how much it is we spend on them daily and in the same way, there are also those items in our budget that we can cut on.

While A a well-writtenudget may not stop prices from rarisingn stores or may not affect the pump price of fuel, it can serve as a monitor that could help one to be stable, helping one to differentiate their wants from their needs and also know exactly where a ton of onone'soney goes.

For our basic needs like rent, food and utilities one may find it difficult to reduce onese expenses but might be able to cut down on the consumption of energy. Other expenses like entertainment and subscriptions can be cut down if the salaries wiareot beough to accommodate them in the budget.

A good way one could plan their expenses is to do a proportional distribution of 50:30:20 where 50% of income is spent on basic needs like rent food, transportation and the likes of it, 30% spent on wants while the remaining 20% will be spent on savings, investment and debts if any. In a time where inflation hits, the 30% margin for wants could be spent to subsidise the basic needs.

My name is @rishagamo and this is my response to the Sci-Fi Multiverse prompt Week 63 Edition 1 "YOUR WAYS TO HANDLE INFLATION"

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