Friday, February 14, 2014

Tips on management money on inflation

When inflation hit a country, the goods and service price will increase. We should earmark our money to spending. We may cut our saving or investment to fulfill our basic need. We must prioritize food rather than saving.

1. Reduce the spending
Though you live in budget, you can decrease the spending again. Cleverly seek out any possible to trim down the spending. If you still eating out once a week, you may reduce it to once a month. Perhaps you still drive car to office. Use the public transportation such as train, bullet train, trem, buss, and others. You can use motorcycle or bicycle to the office.
You can also make the reduction in bill such as electric. You should shut down the lamp when you do not need it. You can use the TL lamp to reduce the electric bills. Close the tap when you do not use water to reduce water bill.

2. Increase income
This is the creative ways to keep your lifestyle. You do not have to cut the expenses if you can do it. Some employeee find side jobs. There are some opportuny for side jobs such as, blogging, teaching, writing, and else. You can get hundreds dollars in a month. It may be not much for you but it can helps you.
3. Investing
If you have so much money, you can invest your money. Some stock can give you high return when inflation occurs. The retail company can generate high profit in inflation.
4. Budgeting
Budget is the ultimate tool to manage the money in any condition. Write down either income or spending in a month. Plan to reduce your spending as the inflation hit or you may increase the income. Creatively seek out the ways to balance the budget.
5. Smart spending
For durable food such as meat, fish, and eggs, you can buy in bulk for a month. As long you have refrigerator, the food won't be damage. You are better to use dried spice that you could use for one year.
6. Do not propose debt
During the inflation, the interest rate is so high. The debt increase so fast because the interest rates. If you pay late, you will get fine and your debt will increase.
You can also cut the credit card to reduce your credit card bill. Use cash if you want buy food in supermarket or stationerry in book store because the cash is cheaper than credit card.

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