STUDY AND MINIMISE YOUR SPENDING
It’s a good time to analyse where you often spend your money. And eliminate some of your non-essential expenses, or replace some of your costs with more affordable alternatives. For example, instead of dining out every weekend, maybe you can just do it once a month because it’s really much cheaper to cook your own food and eat at home.
INCREASE YOUR INCOME
After you’ve done your best to lower your expenses, it’s now time to increase your cash flow. The easiest thing you can do, particularly if you’re employed, is to talk to your boss and ask for a raise. If you’re a freelancer or an entrepreneur, then check if it’s possible to increase your rates and prices. Of course, you can also create additional sources of income. Try doing some freelance work, or check if there’s a home-based business you can start.
DIVERSIFY YOUR PORTFOLIO
Regardless of the state of the economy. You must invest regularly. This is one of the best ways to actually beat inflation, especially in the long-term. However, when the inflation rate is going up, real assets become more attractive as an investment as their prices are poised to go up in the next several months because of the rising inflation. One example of this is gold.
INVEST IN YOURSELF
Finally, you can also choose to invest in your financial education. Particularly, it’s a good time to learn the relationship between stocks and bonds, and how inflation and interest rates affect them. In short, it’s a great opportunity to study how a country’s economy works. During this period, there will be more news features and articles about what’s happening in the economy. Take advantage and increase your financial quotient.
DON‘T MAKE LONG-TERM, FIXED RATE LOANS
Until the inflationary period is over, don’t buy bonds. High inflation rates completely destroy the value of long-term bonds. Of course, there also some people apply for bank loans during good fixed interest rate at 4% and held as the rates hike to 14% over time. Just beware before you apply for a bank loan, review interest rate and choose a good one that will not cause you significant loss in a long-term loan.
If you look at the size of the internet economy, it is significant and the world is moving forward into a digital world. This is why there are more and more online shopping platforms as that is how the businessmen reach out to the consumers. Read more in my previous post on “Start My Own Website“.
INVEST IN THINGS
You can try investing in things that are valuable like gold or silver. In some countries, properties may be ideal for investment but not all. Review before making an investment.