Besides being a health crises, the pandemic has evolved into a deep economic crisis too. Most countries’ economies are effected with negative impacts on incomes, livelihoods, jobs and more. Many people lost their jobs during the massive lockdowns and although the restrictions have been lifted, the current situation and the state of the global economy are not looking too good. Recession is looming and despite the global slow down, inflation is rising due to the increase in food and energy prices.
I can definitely feel the pinch as eating a simple meal in restaurant for a family of three can set us back like RM150 at least. Even a bowl of noodle plus a drink from the local coffeeshop cost about rm15 per head. Everything is so expensive now and we have decided to eat out less. I would usually cook on weekdays and eat out or order food delivery on weekends but looks like this has to change. That said, grocery is not cheap either and I really should look at my financial plans and how to save more money.
Some of the strategies I plan to take are as follows:-
- Reduce energy consumption at home by switching off lights and fans when no one is around. Use energy savings light bulbs. Wash full loads whenever possible. Take shorter showers. Unplug appliances when not in use. All these can help to cut down on the utility bills.
- Look for cheaper alternative when shopping for groceries. I should get into the habit of comparing prices and look for store brand items that are cheaper than others.
- As I am following the keto diet, I usually buy keto bread and keto cakes, and they cost 10 times more than the regular ones. Looks like I have to buy less now and try baking my own.
- Look for a part-time job to supplement my income. I am a blogger and hopefully, I can do some freelance writing for my online advertisers/clients.
- Moving my fixed deposits to banks that offer better interest rate. This online savings calculator – SavingsCalculator.org can help me calculate the compound interest I can earn and make better financial decision.
There seems to be no end to rising prices and inflation does make budgeting more challenging. Having a budget to follow and spending wisely will be able to help me save some money for rainy days.
My Retirement Savings
The inflation also impacts my retirement income and it is important for me to start saving for retirement and learn how to grow my retirement savings. Learning how to maximize the returns will help me live a carefree and comfortable life.
Parents who are saving for their kids’ education may also want to factor in the inflation and the rising cost of education. The education savings calculator can help to calculate the inflated cost to invest the right amount to reach the goal comfortably.
