The issue of inflation is becoming more and more relevant in all parts of the world as some products present increases in their prices, this, together with other international factors and those of each country, including the World Bank, had lowered the growth perspective from 6.7% to 4.1% for Latin America during the past year.
Jamez Hernández, president and co-founder of Trust Corporate, says in this regard, “in a few months we have seen how the cost of living has increased many times exceeding our income and budgets. This has been the consequence of a series of events that have affected the global economy, such as the paralysis of production systems during the pandemic and the war between Russia and Ukraine, that has unleashed the uncertainty of what may happen in the future”.
That is why it is important to pay attention to personal finances to try to ensure that inflation damages them as little as possible, for this Trust Corporate, a consulting firm dedicated to financial, legal and accounting issues, presents 5 tips.
1) Family budgets:Planning and respecting family budgets help to take care of money in times of crisis so as not to have to reduce the quality of life during the period that the inflationary process lasts.
2) Reduction of Expenses:It is important that all members of the household are involved in family finances, whether income or payments, in order to avoid unnecessary expenses and adapt.
3) Good use of credit:In inflationary times, attention should be paid to credits, it is helpful to invest in what can generate additional income and avoid expenses that will not represent returns in income.
4) Strategic purchases:Locating discounts, especially in the basic basket, can be helpful, paying attention to the season of some fruits or vegetables, and even paying attention to local or national products that can be much cheaper than imported ones.
5) Extra income:Searching for new forms of income for personal finances, as well as investments with medium and long-term benefits, will help not only in times of inflation.