Economics Challenge 1 : How to adapt your lifestyle to a tighter budget

in #economics3 years ago

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Hello Steemians,
If you are wonder what this post is about, let me tell you.

It's a post to complete the #1 challenge of @spectrumecons.
You can check his challenge post here

Spectrum Economics Challenge 1 - 25 SBD to be given away


This weeks challenge is about how to adapt lifestyle to a tighter budget.

So, here is how I think it should be done.

1. Create a priority list


Depending on the budget and time limit of the budget, one should first create a priority list of everything worth spending money on. This way you can plan how to convert your hardwork into profit or how to utilize your budget.

The priority list will make you realize and remember which things are to cared for most. I know, priority is a simple thing. But I can also assure, most of us never have created a priority list because we know what has the most priority anyway.

Priority list not only allows you to keep a close eye on it but also saves time for you to think about. But in case of tight budget, priority list is necessary.

2. Make two plans depending on the priority list


Next you should make two types of plan for your budget depending on the priority list. One for maximum spendable money and other for minimum spendable money.

Why ?
Creating these two types of plan will allow you to think and understand how money can be spent on things depending on the situation.
The Minimum plan might able to save you money even if you have a tight budget.
The Maximum plan will show you the maximum use of your budget in the simplest manner.
But I wouldn't suggest you to follow your Maximum plan because, in the end no plan is 100% accurate. You might end up spending more than your budget. So, Minimum plan should be focused on, that's what I think.

But you can always make different kind of plan other than these two depending on situations.

3. Check out the two plans.


Now that you have finished completing your two types of plan, you need to compare them with eachother.
You might see some things in the priority list that costs the same in both of the plans. In this case, Create 2 lists; one consisting them, another without them.
In this, case you can say, that the list which they are consisted are must to be money spent on.
But the other list, you can call it the Sub priority list*.

4. Sub priority list.


Now that you have got your sub priority list, Figure out how much to spend on things depending on them.
But as I have already told you, one should always follow the Minimum plans. Although, sometimes minimum plans are not to be followed. It all depends on the situations, I guess.

Here is a example,

You have a budget of total $100.
You need to eat meals, pay the internet bill, buy some medicines for your mom etc.

First you need to create a priority list.

  1. Medicine for mom.
  2. Go to moms house and give the medicines to her.
  3. Pay the internet bill.
  4. Go to restaurant and eat or go to grocery shop to buy things to cook at home.

Second, create two types of plan.

Minimum

  1. Medicine for mom : 10$
  2. Go to moms house
  3. Pay the internet bill : 50$
  4. Go to restaurant and eat. In this case, you can minimize the amount you eat and meals that day.
    You can eat twice a day instead of thrice : 10$2=20$.
    You can eat thrice a day but eat less than you usually do : 7$
    3=21$.
    Or you can eat twice and eat less than you usually do : 7$*2=14$.

Maximum

  1. Medicine for mom : 20$
  2. Go to moms house.
  3. Pay the internet bill : 50$
  4. Go to restaurant and eat thrice a day good meals : 10$*3=30$.

Here, in this case, you can see that the internet bill is the same. So, you should create to more list.

Must payable

  1. Pay the internet bill : 50$

Sub priority list

  1. Buy medicine for mom.
  2. Go to restaurant and eat.

Now decide, how much you want to spend.


Let me tell you few things what I consider,


I. Which is the correct answer, nobody knows.
II. Nothing is 100% pure or perfect except God.
III. Situations may arise, being prepared is the key to success in that case.

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Wew ! Finally, I was able to finish this post.
I hope you guys enjoyed this post and learnt something new.

Thanks for reading. Please support me with your wish and cheers :)

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Hi
Am your co-contestant in the #1-challenge

I just upvoted your post;
I really have learnt new ways of writing from it, and on the topic of discussion too.

It's nice reading from you!
I just followed you, kindly follow me so as for me to keep learning from you
Best regards