There is a new trend lately that we can’t stop hearing about everywhere – Inflation.
Inflation seems to be like the new monster that overwhelms everyone today. From our daily groceries to utilities and transportation. Everything seems to be getting more and more expensive.
Indeed, we don’t seem to have a choice but only to see the pain of our wallets each time we make a purchase. How can we prepare for what’s lying ahead and fight the new normal of inflation?
Inflation, What is it?
There’s this legendary phrase that all Singaporeans seems to have heard repeatedly, all the time. “Last time my Chicken Rice only costs me $2”
That is the most Singaporean way of identifying what inflation is. Indeed, we all know that it means everything is getting expensive and our money gets us less than what we could get in the past.
What can we Do?
With inflation skyrocketing while our investment portfolios are going down in the red, it is hard to find an answer as to what we can do to fight inflation.
“Invest to beat inflation” seems to hold uncertainties in the near future... or does it? So, what can we do to fight this new normal of inflation?
Consider Buying in Bulk
Be it saving on transportation costs or on our groceries, maybe consider making purchases in bulk.
When we recommend getting in bulk, this may also mean the reduction in our trips down to the mall if we do physical shopping. If we shop everything online, the bulk orders may also give us free shipping or better discounts in some cases.
2. Increase Your Rate of Savings
“Huh but how?! Everything is getting expensive!”
At first glance, this may not make any sense to you. How are we supposed to save more when we must spend more due to inflation right?
Yes indeed, our expenses will increase but so should our savings. But how is it possible right?
Let’s get back to the idea of forced savings.
When we start to save first and spend later, we may just have put ourselves in a situation to spend more intentionally. We will start to realise that we could live off skipping the unnecessary purchases and avoiding the impulse purchases that we have been falling for.
3. Reduce Liabilities
The rise in inflation, also means that depreciating assets or liabilities are getting more expensive.
In situations like this, it may be better off thinking twice before taking on liability such as a loan on a depreciating asset.
4. Invest! But Prudently
Yes, INVEST! No, not just on the cryptos or the stocks recommendations that we see on YouTube. However, invest prudently for the future. Think long term and understand your investment needs and situations.
There are many ways to invest our money other than putting them into stocks and cryptocurrencies that are deemed to be of higher risk.
There are funds that are managed by professional fund managers or bonds that are issued by companies that are safer and can also be a safer alternative in times of uncertainty.
5. Plan, Plan and Plan
With the cost of living on the rise, inflation seems to be only going uptrend and never going down.
Our chicken rice has already risen to $5 per plate and no one knows when it will ever stop. But what is even more important is to start planning for what’s ahead.
This can be done through planning for our retirement, planning for our future children or simply getting insured from the rising medical costs.
One of the safest ways to combat what’s lying ahead may be to plan costs that we may have to bear.
Let’s Beat Inflation
We can’t stop the ‘rice-ing’ rate of our chicken rice, but we certainly can take steps to beat inflation costs.
Be it saving, investing, or planning, they can be important steps to help us get through the rising costs of living.
Do you still have questions about what we have just shared? Why not Chat with us to beat inflation together?
C x D
Learning about financial literacy can also be fun and easy! Stay with us in this financial journey one post at a time to find out how! If you haven’t already, you can check out our other work down below too, happy learning and reading!
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