The cost of living is how much it costs us to be alive. On a daily basis, we need a certain amount of money to cover basic expenses such as housing, food, transportation, taxes, and healthcare. In recent times, everything from food staples, to fuel prices have been increasing in price. Rising cost of living is more acutely felt by households that haven’t seen their incomes rise in line with increasing prices.
Consider a relatively frugal family with a sole income earner, renting an apartment with a monthly rent of Rs 12,000, a Rs 5,000 groceries budget and Rs 3,000 for utilities such as electricity, water and internet. Their daily cost of living might be around Rs 700 in addition to a daily commute Rs 100 travelling to Port Louis and back during weekdays for work. To cover this daily cost of ~Rs 800 and allow for entertainment and other ancillaries, the main breadwinner would need to ensure their salary and earnings are above their household’s cost of living to have basic financial security. If food prices keep increasing, so will that family’s cost of living.
There are two sides to the equation when it comes to tacking the cost of living pressures we’re all currently experiencing, albeit at varying levels. Before thinking of how to cut back on expenses, it might be worthwhile reflecting on how to increase money coming in first. 
Is a raise or a promotion something within reach? Reflecting on all you have achieved in the past few years, might you be able to secure a more senior role in a different company? There’s no harm in giving things a go. Find yourself a trustworthy mentor, have them review your CV and practice interviews, reach out to your network and see how you go. If you have the time, start a side-hustle. If you’re digitally savvy, offer your services to the local businesses to set up and manage their social media. Sell your unused items on Facebook Marketplace. You’ll never know what might work if you don’t try.
As with all things, there’s always a balance. Life isn’t necessarily always about making more money to be happy. After all, what good is earning say Rs100,000 a month if you never have time to spend with your children at dinner in the evenings or your elderly parents on the weekend because you need to put in the overtime? Sometimes, it is best to make enough rather than always going for more.
The other way to tackle our cost of living is to assess each individual expense category to better control money outgoings. Here are some probing questions that might help.
Rent/mortgage: How married are you to your suburb? How big does your house need to be for it to be comfortable? Consider discovering a new part of our tizil by moving to a more affordable area. Not only could this be a lovely adventure, but you might also be able to put more money aside to spend on things you value.
Utilities: delay ‘upgrading’ your phone and review your data usage. Is it worthwhile switching from one provider to the other? Review your electricity and water bills – are there any ways to be more environmentally friendly – be it cooking in bulk or turning off the tap and appliances when not in use, every little bit counts.
Transportation: If your current car still does the job, no need to get a new one – if it ain’t broke, don’t fix it. Sometimes, carpooling might even work out to be a cheaper option than public transport. Offer to pick up the neighbour’s kids along with your own if they’re happy to reciprocate with the morning school drop-off.
Groceries: bulk buy and buy with intention by reducing temptation with a shopping list based on your meal plan.
Revisit your gifts budget: in Mauritius, we have wide social circles with increasing pressure on buying presents for birthdays, baby showers, weddings and all types of occasions. However, not all gifts have to cost money, new parents may very well appreciate an offer for a night of baby-sitting whilst elderly relatives would love an invitation to dinner. Additionally, you may wish to implement with your family & friends a “NUP” policy – no unnecessary presents, ahead of Christmas and other festivities. Trust me, everyone will love you for it.
Entertainment: share the cost of streaming services with your friends instead of going to the movies. Start hosting roving dinner parties – instead of nights out, take turns as hosting nights in and make it fun with themed dress-ups and everyone bringing a plate. Use the free outdoors to make things adventurous and discover new areas of our beautiful island.
Impulse purchases: There’s a difference between buying something you need on sale versus needing to buy something because it is on sale. One handy tip is to implement the 48-hour rule. When you like something in store, take a picture of it, think about how this item fits into your life and home. If you still think it’s worthwhile after 48 hours, buy it.
Above all, reflect on values-based spending, viewing money in terms of the time it took you to earn it and the joy it brings you to spend it. Notice how much you spend the next time you’re out. Based on the median Rs 33,000 monthly salary in Mauritius, if you make around Rs 1,000 a day and spend an average Rs 3,000 on a Friday night out, that amount equates to 3 days of work spent over one evening. Ask yourself whether this aligns with your values, whether it was worth the effort? Would the people you spent your time with, equivalently give you 3 days of their life? If not, learn to say no with ease and experience JOMO, the joy of missing out!
Forget – dimoun ki pou dir – other’s opinions to instead prioritise your goals and live for yourself and your loved ones. Why not do a ‘life audit’ this month? Prioritise being around people and things you enjoy, spend with intent and live with meaning!
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Disclaimer – Information in this column is general in nature and does not take into consideration your personal financial situation. It is for educational purposes only and does not constitute financial advice. Before making financial decisions, consider seeking independent financial advice tailored to your individual needs.
