Inflation has affected our daily cost of living with prices steadily going up. The cost of goods and services increases, making it harder for an average consumer to keep up. The amount of money we used to spend buying grocery items yesterday can no longer buy the same number of goods today.
Now more than ever, it costs more money to pay for water and electricity bills and to fill up our tanks when driving. It is important to be careful and wise in spending money so it can cover the important needs of the family.
The rise in the prices of goods and services can put a strain on the finances of a family. We can learn how to fight inflation at home by implementing some changes that can help overcome its impact. Here are 5 suggestions on how to fight inflation so the family can carry on despite these challenging times:
1. Eliminate high-interest debts. Inflation has caused everything, including daily necessities like food and clothing, to become more expensive. With less money to spend, paying debt may become a struggle.
But did you know that one strategy to fight inflation is to prioritize paying off high-interest debts like credit cards? This ensures that more money can be spent on necessities. . Pay the full balance on time and avoid impulse buying and expensive purchases that can max out the credit cards. Once the high-interest debts are fully paid, avoid having a new ones.
2. Reduce eating out and make healthy food at home. It costs more money to dine out than to eat at home. It may even prove to be more nutritious. While there is nothing wrong with dining out once in a while, more money is saved when we cook at home. Here are some steps that could help:
● Create a meal plan for an entire week or month.
● Include fruits and vegetables that fit your budget.
● Prepare healthy meals that can make the family enjoy eating at home without the expensive cost.
3. Be mindful of lifestyle creep. Lifestyle creep is also known as lifestyle inflation, which happens when we splurge more money on living expenses and non-essentials when income grows. Examples of these may include leisure travel, overspending on appliances with features we don't need, and purchasing expensive gadgets, to name a few. These are some of the wants that we wanted to achieve when we had a smaller income.
With the rising costs of commodities, excessive spending can cut into family savings. If we want to know how to fight inflation, we should also be aware of costly lifestyle creep. Save more money and spend in moderation to have financial stability in the family because times are difficult these days.
4. Create diverse income sources. Among the things that we can do is to diversify income sources if we are thinking of how to fight inflation. Increase income by doing part-time jobs that can help earn money and keep up with high prices of goods.
Some small businesses only need low investments to set up. Think of skills that can be used for freelance work such as an online tutoring business, if the family has a passion for cooking and baking, it can sell home-cooked meals and cakes or pastries. If the family members are into fashion, starting an online fashion shop can help. These are just some of the income-generating ways that provide effective answers on how to fight inflation at home.
5. Work with a financial advisor. Talking to a financial advisor is a big help if one is looking for ways to fight inflation. A financial advisor can give expert advice on how we can save and invest our hard-earned money. They can also guide us on how to increase wealth using the best financial plans that suits every person’s needs and achieve a brighter future, free from anxiety, and monetary difficulties.
Sun Life Philippines has expert financial advisors who can guide families to overcome difficult times like inflation. Talk to a professional financial advisor who can create a budget plan and recommend the perfect insurance and investment products for the family.
Sun Life Philippines offers Sun Legacy, a protection and savings plan that will help preserve the family wealth and pass it on to future generations. It provides financial stability and saves the family from difficulties during uncertain times especially with the rising cost of living due to inflation. It also enables the insured to secure funds that will help loved ones settle estate tax liabilities.
Not sure how much is needed to set aside to afford the future cost of a goal for the family when prices continuously rise? Check out Sun Life’s Inflation Calculator.