How to be poor - Redefine wealth
Managing money when times are tough
The middle class is getting squeezed to the maximum pain; it sucks and hurts. Interest rates are soaring, and inflation is still eroding our purchasing power.
Do you feel trapped?
It’s not just about the money. There's also the social pressure to maintain a facade, to keep up appearances in a world where the goalpost is constantly moving.
We need to adapt to the new reality. Our disposable income will keep falling.
Understanding the New “Normal”
You are on your own now. You can’t live the middle-class dream anymore. Don’t let other people shackle your mind. What do other people think about me? You are poor now, and you will be in the future. The middle class is fucked. The sooner you realize this, the better. No more extravagant Christmas presents or impromptu trips to Thailand. You can’t live beyond your means anymore.
Suffering is a test. Take control of what you can. Build a plan and vision of the future where you want to be.
Interest rates are soaring, and inflation continues to erode our purchasing power. Time to watch in the mirror and realize we were dumb. Now it is time to take control of what we can:
We need to adapt.
Needs vs. Wants: A Critical Distinction
We need food, shelter, and transportation to work. Wants are the extras that can be lived without. Do we need that Thailand trip? Or spend extra on Xmas presents?
You must also communicate this to your family members and set clear expectations.
Budgeting: More Important Than Ever
Have a plan. Budget everything. Keep track of expenses. This also forces you to think while shopping - Do I need this, or do I want this? Cut the wants.
Where is your money going?
Communication, Communication, and Communication.
Open and honest communication about finances is critical, whether with debtors or your family.
Avoiding the topic altogether usually worsens the situation.
When I was a kid, we went through a horrible recession in the early 90’s. I had no idea what was happening, but it would have helped if my parents had communicated “something” instead of snapping over small expenses.
Be honest with your debtors. They have heard all the lies already 1000 times. Be honest, and they help you (they also want their money back).
Everybody is struggling. They are bullshitting if not. Everybody is going through this shit. What are your holiday plans? No plans, having a hard time… 99/100 have responded to me that, yeah - we are struggling too.
Yeah, I fucked up my finances and lived a little bit beyond my means - be honest. Now, we have a starting point to get better.
Creative Cost-Cutting
Look for creative ways to cut costs… Small savings pile up to significant savings over time. Meal planning helped me massively. No impulse buying, no food waste.
Don’t waste too much time focusing on just cost-cutting.
Side Hustles and Additional Income
Is there any possibility of earning more? Yes, it's extremely hard. Of course, all the gurus on social media can pull it off. Please don’t go and buy their courses, FFS.
Again is it even worth it? Here in Finland “extra” work is taxed heavily, so it doesn’t even pay off.
The best would be to earn more and cut costs.
Mental health
Financial stress is the worst. The first step is to vent it out to friends or family or even anonymously to the internet—temporarily relief. The worst is to ignore it and avoid it entirely, not going to the mailbox, not answering the phone, not opening emails… Been there, done that. It is just money in the end - health is true wealth.
Coping techniques
Stoicism, meditation, walks in the forest, and physical exercise.
Long-Term Planning
It won’t be this shit always? It gets worse, but then it always gets better in the end. You will have valuable skills in budgeting and controlling your finances. Regardless of your income level, these will serve you well in the long run.
The sooner you master these skills, the better positioned you'll be for the long haul. Each lesson learned, every penny saved, and every tough decision made now is an investment in your future stability and peace of mind.
The goal is not about surviving but building a strong mofo who can survive no matter what happens.
Conclusion
Yes, it sucks, and yes, it hurts. But within this mess lies an opportunity for transformation.
I lost it all in the covid madness (service business).
This journey is not just about survival. It's about redefining success and happiness in a world where the middle-class dream is rapidly changing. It's about finding contentment in simplicity, in the things that truly matter. It's about building resilience, not just financially but mentally and emotionally.
Our worth is not defined by our bank balance or the material possessions we own. Fuck that shit. Health is true wealth and knowledge, as well as our relationships. Our magical ability to adapt and grow.
Face the reality, communicate, plan, cut costs, and cope.
The shitshow will eventually end, and we will emerge stronger, wiser, and more resilient.
Resources:
Budgeting apps:
https://penno.fi/home (Finnish one, also available in English) FREE. I use this.
Start learning the basics of Economics (IT IS NOT HARD, I PROMISE): https://mises.org/begin
Free book: https://mises.org/library/how-think-about-economy-primer By: Per Bylund
More of my cringe stuff:
