Cost of Living: The 3 Real Reasons You Find It Hard To Make Ends Meet

Real Reason No. 1

The cost of living has been rising and majority of folks are finding it hard to make ends meet. The real reason number one is: Inflation and Taxes.


Am not an economist to explain in details but I always feel the effects of these two ‘guys’.

Lets say you’re the sole breadwinner of a family of four. Alriiiight!... if you are living alone or still single just relax. This is just an example am giving.

Okay, lets say you earned Ksh 20,000 just a few years ago and say you’ve had increases of 30% since. Do you have Ksh 6,000 more to spend?... No. your new high pay is actually worth less in the market place than your Ksh 20,000 was worth because of the erosion in your currency’s value due to inflation and as well as higher income tax rates on your rising income.

To deal with inflation and taxes – you know we have no control over them- you need to start being smart with your personal finances.

Real Reason No. 2

Do you remember you used to do almost everything on your own? Nowadays, you are using far more services than ever before. And they cost far more than ever before. You have, in short, chosen to live in a “service society” and you are paying the price demanded by that society.

  • You pay for laundry services instead of doing your own laundry.
  • You eat out or hire a cook instead of making your own meals.
  • You pay a shoe shiner to clean your shoes instead of doing it yourself.
  • You pay for House Cleaning services rather than clean the house yourself.
  • You go for movies instead of buying a TV set to watch a movie at home.
  • You pay the plumber, the electrician, and the garbage collector.
  • You pay your stockbroker to buy and sell your stocks.
  • You pay the mechanic for servicing your car.
  • Your car breaks down in the middle of town. You pay for breakdown services.
  • You pay for golf lessons, piano lessons, salsa lessons, tennis lessons, swimming lessons, language lessons and many other lessons.
  • You hire a chauffeur to take your children to school and your wife for shopping.
  • You...the list is endless.

You will realize that you never used so broad a variety of services to such an extent in your own daily life. This is a fundamental reason your cost of living is climbing so fast and it’s a real reason you can’t make ends meet too.

Are you ready for real reason no. 3

Real Reason No. 3

Here we go. For years you have been upgrading continually upgrading your demands turning the luxuries of yesterday into the necessities of today. You have come to feel entitled...yeah!e...entitled to fairly sharp year to year increases in your living standards and have become accustomed to taking boosting your spending budget to new records each year even when the boosting is unwarranted. You have made your cost of living unnecessarily high.

You may well now feel you’re going broke even when your income is high, but if you will look honestly at how you live, you might regretfully conclude that you’re at least going know how...going broke in style.

Parting Short!

If you have been finding it hard to make ends meet, it's right time now you took a critical look at your lifestyle with the aim of eliminating, cutting down, and finding alternative ways to reduce your expenses.

But first, take some time to do an analysis of your current financial position, then from what you will find, make the necessary changes to reduce your cost of living.

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