Most of us feel that inflation is hitting everyone now. As consumers, we have been hit with the rising prices from various sides. Not only groceries, services and fuel, but also our monthly loan payments, etc and of course, the cost of living as well. We can say that there are actually many factors that cause the price to hike up, and this does affect everyone’s personal finance in a different way.
It is important to note that if you feel worried and overwhelmed, you’re not alone. In fact, many of us are in the same boat. Here’s what we can do to cope and what we should be doing about the current economy’s uncertainties.
1. Review spending habits
We really need to know what we are spending our money on. Sometimes, we might neglect how we spend on things daily. Assessing our spending habits will help us to manage our finances properly towards attaining our financial goals. We need to track our expenses and compare what we spend vs what we plan to spend based on our budget. In this way, we can build better money habits.
2. Focus on paying off debts
With this current financial crisis, we probably will be thinking about borrowing and perhaps tempted by the latest promos on credit cards. Hold on everyone. Let’s focus on paying off our debts first. But…if we are a person who is able to manage and tackle the debts seriously, then we can opt to apply for credit cards. No problem. However, if we don’t or can’t manage our credit cards, hmmm…better don’t think of having them. Hence, if our debts are at a critical stage, we shouldn’t be afraid to engage with a licensed or certified financial planner to guide us, rectify our financial management and reach AKPK to help us restructure our debts.
3. Find the best prices
We are easily influenced by fascinating deals and items around us. What we can do is to look for discounts on the things that we aim for. As consumers, we do have the right to find and hunt for quality ones at affordable rates, even for grocery items. I believe that we do all notice the different prices sold by each grocery store, supermarket, hypermarket or even online stores. Taking time to survey the items needed will save us a lot at the end of the day, trust me.
4. Don’t fall prey to the latest trends
It can be denied that even though we all are commenting about the rising prices, we actually have another silent killer that is trend. We probably think that inflation is the only silent killer to our budget, but actually latest trends also are silent killers to us. Yeah…it is and do you agree with me? For example, with the latest fashions, gadgets and others—you name it! We might be prone to follow the trends and buy them. Thus, check our budget carefully everyone, because we don’t want to hurt our wallet and knowing that we don’t have enough money to cater for our necessary items. It’s better to be safe than sorry.
5. Continue saving
We should save even though our earnings seem to have little or no cash at hand. In fact, we are encouraged to set a financial goal to build savings for various purposes in life, especially for short-term financial goals. Moreover, we need to always remember that savings will enable us to invest. We cannot invest unless we have saved first. It’s never too late to start saving. Let’s set aside even a small amount each month so that we are ready on our way towards a better financial health.