No matter how good or bad a country’s situation is, inflation will always increase a little more each year. There are small habits you can do in your form of consumption that can help you beat inflation.
What is inflation?
Let’s begin by explaining what inflation is. Each year the prices of goods and services are increasing. Money begins to lose value over the years and every time it reaches to buy much less. It is measured by the Consumer Price Index (CPI).
Types of inflation
Depending on the factor that triggers inflation can be divided into four types:
- By cost: When there is an increase in raw materials such as metals and oil.
- On-demand: When there are too much demand and little production.
- By expectations: When there is inflation in certain countries, an increase in wages is requested which creates an increase in prices, generating a vicious circle.
- Self-manufactured: Sometimes prices are forecast to rise and costs rise before inflation gradually increases.
How to beat inflation
You can only overcome something that is understood, now that it is clear the concept can apply the following strategies.
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Comparison of prices and use of offers
Be part of the responsible consumer community, comparing prices will benefit our economy in the end. Looking for deals is not about being stingy, but about knowing the best alternatives that fit your budget.
Vary your Consumption
The rise in prices of goods does not apply equally to all products, some take longer to perceive this increase. That’s why it matters a lot the price comparison. Vary your diet and your way of eating, instead of buying meat, switch to fish. Do not be true to a brand when you are forecasting inflation increases.
Usually changing brands and products makes you a more responsible and intelligent buyer. As well as opening a great world of opportunities.
As we commented the advice to go to the supermarket with a list and a budget helps you to be able to prevent and anticipate the increase in prices. We advise you to use common sense, you do not need to buy early products that are not necessary or will not be used soon because you could risk paying other liabilities or even incur debt.
In order to prevent or better be prepared for inflation, it is advisable to start with a savings fund. Of course, the formal methods are recommended, where it will not lose its value. One could say that the best alternative to do so could be in UVAs (Unit of Purchasing Value) that are growing at par with the CPI. Check the different alternatives presented by banks