Highlights
- Inflation is the cost of living.
- Don't go over your budget and cut costs where you can.
- Negotiate for an increase in salary or work flexibility.
'May PERAan' is SBS Filipino's podcast series which features financial experts seeking to answer the most common questions about money and finances.
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Paano ba makakahabol ang aking budget sa nararanasang inflation?
SBS Filipino
10/05/202210:09
“In Australia, almost every day, there’s news regarding inflation. Simply put, inflation is the cost of living.”
Finance journalist Michelle Baltazar gives tips on what you can do to make sure you can survive on your salary now that the cost of living is on the rise.
According to Michelle, the current inflation rate of 5.1% doesn’t mean anything to an individual.
“It’s an abstract number,” she stresses.
The inflation rate is calculated by financial experts based on the average of a lot of things, such as the cost of buying a car and the cost of buying clothes.
“The 2% increase to your salary, let’s say, is a real number. That is real money.”
Michelle suggests the following practical tips on how to use real money in a wise way:
1. Don’t go beyond your budget.
“If you have $100 to spend on groceries, don’t go beyond it by using your credit card to cover the excess.”
Michelle says that using your credit card means you’ll always be chasing your money.
2. Pick three things you will be sacrificing this year.
Michelle shares there are certain things you can’t cut out of your budget, such as rent.
“But there are things that you can.
“For example, I like chocolate. Now I don’t buy it when I go to the shops because that’s less $6-10 when I don’t.”
3. Use a grocery comparison app.
“This is my favourite tip.
“List down all the things you need to buy on the app and, it will give you a comparison of which stores sell them for less. It will even alert you when those items go on sale.”
According to Michelle, research shows that a grocery comparison app can save you $600-$2,000 a year.
4. Negotiate on increase or flexibility.
“A 2% increase is actually good; but if you are going to negotiate, go for 5-10% or work flexibility.”
Michelle says that instead of working five days, you can ask for a compressed four-day work week.
“This way, you’ll have a day to use for a side hustle or; it will lessen days your child is in childcare, and therefore, lessen costs.”
Disclaimer: The information in this article serves only as a guide. For additional information regarding your particular issue or situation, consult with legal, financial and/or tax experts.
