Inflation can take the worst out of your budget and it's not something that is easy to deal with. Last year in October, the Philippines’ inflation rate spiked to a nearly 14-year high of 7.7% in October. According to the Philippine Statistics Authority, the inflation in the Philippines went up even higher at 8.1% in December 2022 from 8 percent in November, bringing the full-year average to 5.8 percent, according to the Philippine Statistics Authority.
This boils down to higher prices of goods including basic commodities. What this means for us is that we have to be a lot more strategic in the way we spend our hard-earned money. Besides, even if the prices of goods soar, ordinary employees' salaries are remaining stagnant.
In this article, I'll share with you some of the budgeting tips I do in order for me to save money amid inflation. These tips are my own and I do not claim to be a money expert.
Tips for saving money during inflation
Wondering how to save money during inflation? Here are some tips:
1. Set a monthly budget
Every month, I make sure that I set a budget and list down all the expenses I need to spend my money on. Having a spending plan allows me to anticipate how much I'll spend on the needs and how much I can allot for the wants. This also enables me to
estimate savings for the month.
2. Shop smarter
Living independently is not new to me. I've experienced this since I was in college. But now's a bit different because although I work from home, my expenses are higher than ever because I pay for so many things, from car and house utility bills to my own grocery. I'll be honest, this is the only time I became so affected of the rising prices. Imagine, one kilo of onion here costs PHP 600 (USD 10+).
While I can't control the prices of goods, I can control how I spend my money. What I do is that instead of buying vegetables at the grocery store, I go to the public market. Goods in the public market cost almost 50% less than in the grocery stores.
Also, I make sure that I always have with me my loyalty cards that I can use every time I shop. Because many malls and stores that offer this perk allow its customers to earn points that are good as money.
3. Cut unnecessary subscriptions and fees
In this day and age, streaming services are a bit of a staple to every household already. Gone are the days we rely only on cable TV. We have Netflix now. Gone are the days we listen to free music on the radio. We have Spotify now. But these new online services don't come in free (for the most of it).
Spotify subscription fee may not seem much but PHP 149 (USD 2.8) a month adds up to PHP 1,788 per year. I can use that annual fee for a sack of rice that will keep me full for months. What's a 30-seconder ad for a month of stuffed stomach. I can sacrifice those repeatedly ads.
4. Invest
Some people might raise their eyebrows at me thinking what the hell I'm thinking for investing a part of my money when I'm facing higher monthly costs. This might seem the wrong time to invest but we can do it smartly and carefully. After all, the point of investing is to help us beat inflation.
Bottom line
This continuous rising of inflation rate makes budgeting a lot more challenging. Spending your money in the most responsible way goes a long way. While identifying the unnecessary expenses you can cut every month can also help you save money, we can also look for other ways to save. Finding ways to grow our income also helps.
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