With rising prices and the cost of essentials going up, it’s not surprising that many people are searching for ways to save money or increase their income. The good news is that there are strategies you can adopt and actions to avoid that can help you manage and combat rising inflation.
Here are the top ways to manage rising inflation:
Continue Investing in Diversified Assets
Investing a portion of your income is one way to keep up with, or even outpace, inflation. While rising interest rates or falling stock markets may make people hesitate in making investment decisions, it’s crucial to stay focused on your long-term goals and avoid short-term market volatility. Having a diversified investment portfolio, with money invested across various asset classes and industries, may help cushion you from major market drops.
Find Ways to Reduce Expenses
To combat inflation, it’s essential to find ways to reduce your expenses. Here are some everyday bills to focus on:
Home loans: Shop around for the best deals on your home loan, electricity, and insurance. You may end up saving hundreds of dollars in the long-term.
Subscriptions and memberships: Cut down on subscriptions or memberships you don’t use and make sure you’re getting all the concessions you’re entitled to, such as rebates and pensioner discounts.
Electricity: Implement energy-saving tips, such as using energy-efficient lightbulbs, installing solar panels, water-saving techniques, and unplugging unused electronics.
Groceries: Reduce grocery costs by meal planning, finding recipes that use the same ingredients, and growing your own vegetables.
Petrol: Plan smart ways to reduce costs, such as working from home, riding a bike, using public transport, carpooling, and cutting down on commuting expenses.
Consider Ways to Increase Your Income
While there may not be an easy or quick way to increase your income, there are options to earn extra cash to cover immediate expenses.
Passive income: Earning money with little effort through investment properties, shares, bonds, fixed-income, starting a side business, or creating social media content.
Side jobs: Find additional sources of income by renting out a room or parking space, pet sitting, dog walking, online tutoring, or driving for a rideshare service.
Job performance and promotion: Use your job performance and rising inflation to negotiate a promotion or salary increase.
In conclusion, managing rising inflation requires a combination of reducing expenses and increasing income. By following these tips, you can stay on top of your finances and ensure financial stability even during tough economic times.
Source: Insignia Financial
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