What is the cost-of-living crisis?

It is a fall in 'real' disposable incomes. In this, the cost of basic items like food, household, healthcare, power, gas, fuel, etc. spikes rapidly.

Are the cost-of-living crisis and inflation the same?

Inflation leads to a cost-of-living crisis. The former may subside with time, while the latter continues to stay for a prolonged period.

Tip 1: Calculate your savings and expenses

Calculate how much money you have saved or can save. This can help you prioritize your expenses and know how much to spend on what.

Tip 2: Steer clear of news and social media

Try to ground yourself by not tuning into the news or social media. Someone facing extreme adversity doesn't indicate it's going to knock on your doors too.

Tip 3: Plan with friends, relatives, or neighbors

The key is to indulge in sharing. From carpooling and meal-sharing to cooping up in one room to save power, small contributions can help in big ways.

Tip 4: Build a network and offer/receive help

People with low income are the worst affected. Hence, you can build a network - online or offline, to help those in a dire need of food, medicines, etc.

Tip 5: Keep yourself busy

Stay busy with work, check with your workplace if the management has policies to survive the cost-of-living crisis, and indulge in hobbies to maintain mental well-being.