How I survive Europe's inflation

As an expat in Estonia, I have experienced firsthand the impact of inflation on the country's economy. Estonia has witnessed one of the highest inflation rates in Europe in 2023, making it crucial for individuals like myself to navigate the challenges and ensure financial stability.

Below explores some of the strategies that my friends and I employ to navigate its effects, including side jobs, efficient work management, opting to cook, meal replacements, skill improvement, and opting for remote work.

Embracing Cooking and Meal Replacements

Inflation affects grocery bills, emphasizing the need for cost-effective meal solutions. Cooking at home saves money and grants individuals control over their nutrition. Exploring budget-friendly recipes and meal-planning techniques makes cooking enjoyable and economical. I sometimes miss Asian food that no restaurants in Estonia offer so I have no choice but to cook it myself to satisfy my cravings. Alternatively, if you have an on-the-go lifestyle, convenient and affordable meal replacements like Plenny Shake provide essential nutrients and manage food expenses during inflation.

From only $1.69 per meal. Eat what you need and save precious time and money.

Taking Up a Side Job as a Wolt Courier

One way to mitigate the impact of inflation is by pursuing additional income sources. In Estonia, many individuals opt for flexible side jobs like working as Wolt couriers. This allows them to earn extra money while enjoying schedule flexibility. While it can be physically demanding, being a courier offers opportunities to explore the city, meet new people, and contribute to the local community. Take note, however, to review tax implications when doing this.

Each task is defined by a unique price offered. Some parameters that affect this pricing are delivery distances, weather conditions, peak hours, etc.

Managing Overemployment at one Own Workplace

Sometimes, individuals become over-employed at their primary workplace due to increased demands and responsibilities. While this can be overwhelming, it also opens up the chance to earn extra income. By efficiently managing time and prioritizing tasks, individuals can effectively balance their workload and ensure fair compensation for their efforts. Take note, however, that overtime should be negotiated with your employer and there are only specific instances that you'll be allowed to do this i.e. in case of an emergency. Working and rest time rules specific to Estonia can be found here.

Overtime is compensated with paid time off or at a rate of 1.5 times the wages.

The Advantage of Used Cars

Living in Estonia has the advantage of low taxes on non-renewable car options, making it favorable for owning a used vehicle. Opting for a used car provides personal transportation benefits without high taxes and significant depreciation. Recently, I exchanged my car running on gasoline for a used car that has better fuel consumption. This choice supports financial stability and helps navigate inflation. Some European countries, however, have significantly lower tax values for electric and hybrid cars, encouraging consumers to buy more environmentally-friendly transport.

The annual tax for a zero-emission vehicle is €53.29, while the highest annual tax for a vehicle emitting 400 grams or more of CO2 per kilometer is €654.44, with a gradual increase.

Prioritizing Expenses

Identifying areas where spending can be reduced or optimized can free up funds for essential needs and savings. Building an emergency fund provides a safety net during challenging economic times. Hold on to your beloved clothes and consider not upgrading the wardrobe until this is over.

Most experts believe you should have enough money in your emergency fund to cover at least 3 to 6 months' worth of living expenses.

Conclusion

Surviving Estonia's inflation requires adaptability and creative strategies for financial stability and well-being. From side jobs like being a Wolt courier to managing over employment, incorporating cooking and meal replacements like Plenny shake, and embracing work-from-home opportunities for skill improvement, individuals navigate rising costs. Balancing income, expenses, and personal growth enables thriving in an inflationary environment. Prioritize self-care, work-life balance, and adjust strategies for long-term financial resilience.