"Domestic inflation reflects domestic monetary policy." Martin Feldstien
Inflation means rice in prices of goods and services and cost of living in one year. Consumer Price Index can be used as the synonyms of cost of living to measure Inflation. The eight major group of Consumer Price Index (CPI) are housing, apparels, transportation, education and communication, recreation, medical care, food and beverages, goods and services. Consumer Price Index is used by major countries of the world to measure the cost of living per year of an individual. According to Consumer Price Index data Inflation in United kingdom, North America & South America, Europe and Africa has been at highest in this decade. In some countries inflation has been the highest it has ever been and it continues to rise.
Today I am going to share with you some step that will help you to cope up with hyperinflation.
Measure Personal Inflation :
To beat inflation first step is to measure Personal Inflation that means how inflation is effecting you personally. This article will give you information to the changes your required to keep up. Easiest way is to look at your credit or debit card withdrawal and savings statements from last 2 years and check the rise in your cost of living. You will realize how your monthly expenses are going up. Note your food, housing, recreation, transportation and others expenses in diary and examine what's costing high. Compare your unnecessary and necessary expenses in details and it will cleared to you your personalized inflation rate.
Identify the Origin of Inflation
If you are monitoring your credit and debit card statements and your monthly expenses it will be easy for you to indentify the origin of inflation. If you are spending more on food, restaurants and bars then you are suffering from food inflation. If you are spending more on energy bills, gas and utility bills your personal inflation is of technological that cause of excessive use of technology. There are possible alternative ways that can help you to beat these types of inflation. If all your expenses are rising by same way it might be inflation caused by money printing in the state.
Cut Expenses, Increase Income :
The inflation rise as the results of imbalance between supply and demand of the goods and services. The first step to beat inflation is to look at the supply and demand of your personal expenses. In other way monitor where you can cut your expenses and how you can increase your income. You may buy all the things plenty in numbers that you need in future and will cost high then today. This is best way to store the things and save yourself from paying extra charges for the same products. The second step to beat inflation is to decrease your taxes. The third way is to stop unnecessary expenses that are wastage of money. You can say no to subscribtion of Smart TV and Netflix etc. You can cook your breakfast and meals at home. Try to walk in the park for recreation instead of driving to save transportation expenses.
Investment :
Investment in Real Estate and Cryptocurrency help you to get profit and beat with the rising cost of living because of inflation. Bitcoin Cash is trustable and worthy stable coin in the Crypto Blockchain.
I'm sure that these step will help you to beat inflation.