As of writing, Filipinos are ultimately alarmed with the inflation that’s happening. Everyone is extremely distressed with everything that’s going on. They put the blame on our dearest President without knowing what it actually is and why it’s happening. To say it simply, inflation is the sudden hike in the prices of goods and commodities while the currency value decreases. This puts pressure especially on workers because the amount of what they earn do not change but the amount of goods skyrocket. But how can we overcome inflation? Is this social dilemma escapable?
Inflation: what it really is?
Taking it in general terms, inflation is the ultimate change of prices of goods which decreases the value of the purchasing power or the currency. The inflation rate, however, is the increase in prices over a calendar year. In reality, there are many different factors affecting the inflation rate not just the President. This is the common misconception that Filipinos have of our leader. They think that because of what he’s doing and because of what he said, the prices of the goods and commodities soar.
An economist mentioned that with the inflation rate we are experiencing, OFWs should send 20 to 30 percent more than what they’re normally sending to brush-off the inflation rate.
One factor that is not often looked at is the supply and demand. If the demand exceeds the supply, this makes sellers big-eyed when it comes to pricing their goods. Therefore, we can tell that the prices don’t go up just because the President said so.
Can we overcome inflation?
Like any other global and economical situation, inflation is something we can cross out. There are a few things we can do in order to achieve an inflation-free environment. Even though inflation is something that is globally recognized, we can personally try and maintain things for us not to be negatively impacted by it.
Have a list of all your spendings
Nothing beats budgeting. Planning on what you will be spending is the best way to escape this dilemma. As a matter of fact, inflation would really hit an individual if they don’t think about how and what they’re spending on. Moving forward, it’s also a healthy habit to keep track of what your costs are. This way, you will be able to determine whether or not your current spending limit is applicable to the current economical situation.
Save and invest
Saving is one thing, investing is another. The reason why you should invest what you save is that saving your money while there is inflation is actually not saving at all. Why? Because while the prices of goods go up, the value of your “saved money” remains the same. Instead, put your money to work – invest. There are many different investments you can study and try, start it immediately so you get the most out of it.
Make it a habit to set aside money from your payout
This is in connection to our tip above. When you receive your salary, don’t go spending it all. At least, set aside 10 to 20 percent of your earnings and keep it for emergency purposes. You can do it like 10 percent each for emergency and for investments. Don’t invest all of what you have as one wise investor once said, “don’t put and bet all of your chips in one card.”
Read: Saving vs. Investing
Spend within your means
If you’re used to a lavish lifestyle, you better watch and change it immediately. With the prices of the goods rising, you can’t keep on living how you live your life. In order for you to overcome inflation, you need to start looking at your own grounds. Start spending within your means; prioritize things that you need first before things that just caught your attention. Avoid spending a lot of money on services and things that won’t last long.
Find other streams of income
Even if you have a lucrative take-home pay, it’s still not enough for you to overcome inflation. Remember that the moment the prices of commodities go up, you don’t have a way of personally decreasing it. The only way is for you to generate more money so you can buy more; the only way you can do that is if you save, invest, or if you find another line of income. Ultimately, earning more could make you disregard the inflation everyone is experiencing.
Save in your utilities
Even though utility bills are not affected by the price increase, wouldn’t it be better if you spend less on these and more on the things that got out of hand? We’re not saying that you contain yourself when it comes to your utilities; it’s just to control it for you to pay lesser for them.
If you come to think of it, these things are not things that only smart people can do. These are basic things that many people fail to realize because they’re earning their money. Even though there are a ton of ways on how you can overcome inflation, it’s not that easy.