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Highlights
- Inflation fears continue- supply chain woes as a result of Covid-19 and crunch in oil and gas supply due to Russia-Ukraine conflict are major catalysts.
- Through central banks, governments are trying to combat inflation on a large scale by raising borrowing rates.
- It is recommended for people to reduce their dependency on petrol, shun down monthly expenses, consider buying sustainable garments.
Inflation has caught up the world economy into a loop of rising prices and falling real income in the hands of people. There are several reasons behind the significant rise in prices across the globe. The two primary reasons are supply chain woes because of the Covid-19 pandemic, followed by the crunch in oil and gas supply because of the Russian-Ukraine conflict.
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Prices are skyrocketing, and the normal citizen is getting crushed under the pressure of high household expenditure. Thus, it becomes essential to optimise the use of running income so that all necessary expenses are met without any extra burden on one’s pocket.
Source: © Andreypopov | Megapixl.com
Here are a few tips to fight inflation and cut down costs-
- Lesser dependency on petrol: Petrol prices are mounting high in most countries. The share of income spent on monthly petrol expenses is extravagantly rising. Thus, it is recommended for people to reduce their dependency on petrol. Perhaps shifting to electric vehicles (EVs) is the right way to go about it. Secondly, if not EV, one can always prefer public transport to reduce the overall cost of transportation.
- Lesser expenditure in supermarkets: Another way of reducing monthly expenses is to spend less in supermarkets. People don’t usually realise that when they go to the supermarket, they end up paying more. So, instead, people should order essential products online and avoid the visit to supermarkets.
- Look for cheaper ways of entertainment and fun: We need fun and rejuvenation in life, that is true. However, at times we spend big money on entertainment. So, when prices are skyrocketing, one should rethink entertainment expenditures. You can look for alternative ways for the same. For instance, rather than going to an expensive mall for the weekend, you can go to a park for a family picnic. It’s all about rethinking, reimagining- and ultimately saving money!
- Avoid fast fashion: Clothing is expensive, especially in the current environment when mostly all fashion falls under the category of fast fashion. It is a poison to your monthly income because style changes every other month and then you have to buy new trending clothes so that you don’t wear the obsolete ones. Thus, people should rather buy sustainable garments and not fall for the tactics of the fast fashion industry.
- Selective streaming: There are tons of movie streaming platforms. However, the charges vary depending upon the platform. Thus, you should compare the prices and select which movie streaming platform you want to subscribe to. This way, you can limit your monthly expenditure on these platforms and also do not lose on the fun part.
Inflation is a time for savers to reconsider their strategies. No one knows what the future will bring, but by making changes to how you spend, you may be able to weather times of inflation more easily.
