Feb 17, 2023

Is Inflation Improving? The Numbers Are In…

The inflation figures were out yesterday, and they show that inflation has been slowing. 

But does this tell the entire story? Unfortunately, no. 

Source: Trading Economics

As we look at the inflation data, we can see that they are broken down into several distinct categories, one of which is energy. Energy in this country has seen huge inflation all of a sudden, and the reason for this is that the government has been subsidizing gas and gasoline from its emergency reserves. You're also seeing the bubble bust and the used vehicle market, which is helping inflation a little bit, but the major issue is energy costs and government subsidies for petrol, which can't go forever since our emergency fuel supplies are limited. 

That's been the main story of what's keeping inflation at bay. Inflation and food prices are slowing, which is excellent, but I believe we'll see more inflation in the not-too-distant future. Regrettably, despite the fact that the figures are good at the moment.

How To Protect Yourself?

If possible, increasing your earning abilities and income is the most powerful approach to protect yourself against inflation. Inflation would be less relevant if you received a 5% annual rise or a 20% promotion. If that isn't doable, or if you're on a fixed salary, you'll have to look into other choices. Investing in the stock market is one strategy to safeguard your savings. Over time, it has repaid approximately 10% of investments. But, it is unknown if it will do so in the future, and there is also risk involved in investing in the stock market.

Read more: 3 Important Financial Decisions to Make On Payday

Ways You Can Lower Your Cost of Living

  • Make a budget and stick to it, write down how much money you are getting and how much you need to pay for things. Do you have enough room in your budget to pay off big debts like your student loan or car loan to get more money? You might be able to spend less on things like going out to eat or shopping online.

  • Review Your List of Expenses: Some bills, like insurance and phone bills, are not set in stone. Talk to your service provider or lender to see if you can get your bills lowered. For example, your car and health insurance premiums can go down if you raise your deductible.

  • Put a Halt on Your Credit Card: If you carry a balance from month to month, you pay interest rates in the double-digit range. If you pay off your balance in full every month by the due date, you would not have to pay interest. If you do not borrow money, you also have to pay for things with cash as much as possible and buy cars without financing. This forces you to stick to your budget.

I hope this was helpful!

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