Two things to do in response to inflation.
Two things to do in response to inflation.
It's all over the news that some countries are experiencing inflation while others are in hyperinflation and the disappointing fact is that most of the governments of these countries are lost in knowledge on addressing the problem. This has hampered the economy and has affected every sector of the economy badly while their citizens are the most hit.
What is inflation?
Inflation in a simple term is the persistent rise in the general prices of goods and services over a certain period usually a year. Inflation comes with loads of discomfort as life within an inflationary economy becomes unbearable to the people. In this way, people's lifestyles and habits are affected. Hence the purchasing power of the people are also affected.
Businesses in an inflationary economy struggle to survive because of the incessant change in the prices of goods and services. A business man will find it difficult to make profit as often as he ought to.
Also, companies and organizations tend to fold up because of their inability to meet up with the high cost of production, hence leading to massive retrenchment of workers and loss of jobs. These are the few evils that come with inflation.
Two things to do to beat inflation
The truth is that during inflation not everyone in the system is affected by it. While some people may find it difficult to buy food, some people are involved in building construction. This is a pointer that people can survive inflation and do the best for their lives. In this write up I will explicate two things that will help a person navigate through inflation.
Increase your income/ earnings:
During inflation, you need more money to buy the things you bought erstwhile with a little amount of money. So you will need like two or three times more money to buy the same thing. And to meet up with this demand, you need more money in your pocket. To get more money you have to increase your income by doubling your earnings either through hard work or more investments. But you only have to make more money because if you don't, you may not be able to pay bills and buy basic things you may need.
Cut down on expenses
There are no two ways about it, if you are unable to increase your earnings and income then you should be able to cut down on some expenses. Cutting down on expenses includes reducing the quantity and quality of foodstuff, trekking some distance instead of taking a taxi, reducing your magnanimity, changing your children's school, suspending every form of project, modifying your taste for some products like buying from thrift shops and many others. This act will help you to save some money to focus on the necessary and important things.
It's either you make more money to stay afloat during inflation or you cut down on expenses to be able to survive the tide of time.
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