Many of us have heard of the 50/30/20 rule when it comes to managing our finances. According to this rule 20% of a person’s monthly income should go to savings; 50% should go to necessities and 30% should go to discretionary items. While this is an ideal that some persons are privileged to be able to achieve, sadly the number of persons in Anguilla for whom this is more of a fairy tale appears to be increasing.
The cries of hardship are increasing, as the cost of living continues to rise in Anguilla, with no apparent policy initiatives on the horizon, to offer some relief to Anguillians and residents of Anguilla. Many Anguillians claim not to have sufficient funds to meet their necessities, far less having sufficient funds to purchase discretionary items or to create any savings. Many Anguillians are in debt as they struggle to attend to their children’s education needs or their own health needs. Many remain in unhealthy living relationships because that is the only way they can be assured of a roof over their heads.
We look to our governing authorities to provide an environment which will lighten our financial burdens. In this respect, we look to both our elected Government and the United Kingdom Government (UKG). This we feel is justified as our elected administration appears to have fostered a very intimate working relationship with the UKG, which is being reflected in funding for infrastructural projects in addition to the funding provided to rebuild facilities damaged by Hurricane Irma. While the additional infrastructural development is welcome, the cynical among us wonder whether the price we must pay is too high.
Many of us have also heard the saying that, ‘there is no such thing as a free lunch.’ The apparent UKG largesse comes at a price. Funding comes with conditions. The Goods and Services Tax (GST) which will make its presence felt on 1st July, 2022 is one such condition. What about the recent fee increases implemented by the Government Agencies, at the behest of the Government? Were these increases the sole work of our elected officials or were they pressured, subtly or otherwise, into implementing fee increases as part of what I will describe as the UK’s Covid-19 Rescue package for Anguilla? The perpetual presence of the UK appointed Financial Adviser at Executive Council meetings has not gone unnoticed.
Whatever motivated the recent and anticipated cost increases, it is proving to be too much for many Anguillians. Will our elected Government and our administering power also work in accord to alleviate the suffering of the people? Giving us new infrastructure, which will result in increased recurrent costs for Anguillians and residents to bear, when most of us are already experiencing hardship, is not the mark of a caring government. In fact, many persons have been expressing the view that our elected Government and the representatives of Her Majesty’s Government are not in touch with the realities of life for most Anguillians and residents.
The reality is that many Anguillians work at least two jobs to provide necessities for them and their families. Recently, many persons have resorted to holding fundraising breakfasts to raise funds to address the healthcare needs of family members. The 50/30/20 rule has no place in the realities of many Anguillians and residents of Anguilla. Instead, 100% of their earnings must go towards necessities – and for many their monthly income is totally consumed, while certain necessities are still outstanding.
The people’s plea, which we hope will not continue to fall on deaf ears, is for the elected Government of Anguilla and our administering power, the United Kingdom Government, to take steps to ease our financial woes. We must at least try to make the 50/30/20 rule a reality rather than remain a fairytale.
