Well, after seeing the impact of the high inflation, there are several ways to manage finances so that life doesn't seem to be getting heavier. Because of inflation, your money will be eroded in value. What is the way? Here are tips on how to manage finances facing high inflation:
1. Make a Financial Note
The first thing to do in managing finances is to make financial records that consist of expenses and income. This is done not only when facing high inflation rates, but also needs to be done every time managing income.
By making a financial record, you will have a list of cash flows from your income each month. So that between income and expenditure is clearly recorded, and you can calculate well whether your finances are healthy or not.
2. Proper Expenditure Budget
Make or arrange your expenditure budget properly. That is, only your budget needs are really important, such as basic food needs, transportation, investment / savings, and others. Calculate all the main expenses according to your budget and cut expenses that are not really urgent and necessary.
Therefore, if indeed the financial condition does not make it possible to budget for a need as previously prepared, do not hesitate to change the plan. Because after all, to realize a plan that requires funds, if the funds are not sufficient, look for other alternatives that match the budget.
3. Not wasteful
Wasteful and not often someone happens because of habits, or carried away by the stream or follow other people. But we all know, wasteful is not a wise attitude towards financial health. Moreover, if indeed the national economic condition is not good, such as the inflation rate that soared.
Therefore, not being wasteful is the key to maintaining healthy finance and regulating and preparing for a better life in the future. So, avoid this wasteful nature and become a financially independent person.
4. Search for Discount Prices
Looking for prices that are discounted when shopping is one way to deal with high inflation. With a discount, you will get the items needed at a cheaper price than usual.
Of course this will help you to save money, right? Do not be reluctant to look for items of daily necessities that are being promoted, and do not be lazy to compare products with one another in order to get a low price but the quality remains good.
To get products at discounted prices, you can also use a credit card. Because usually many merchants work with credit card issuing banks to issue promo prices.
This discipline becomes very important in managing finance. Plus if you are accustomed to being impulsive, which is easy to change and interested in things that are seen spontaneously, meaning unplanned. For example, when you go to the Mall, you did not plan to buy clothes and dolls before. But when I saw the unique clothes and cute dolls on display at the store, without thinking, the doll's clothes were bought.
Well, things like this should be avoided as much as possible. Especially when inflation is high. The budget to meet other more important needs can be neglected, right?
6. Don't delay investment
Don't delay investing. This is important, because investment can make your finances better and more stable. Because investment provides more benefits than just ordinary savings, especially if only stored under a pillow. Because that money will easily be eroded by inflation.
Choose an investment instrument that suits your wants and needs . There are many investment instruments that can be chosen, ranging from deposits, precious metals, mutual funds, stocks, and others. Don't forget to always pay attention to the latest economic conditions by always looking for the latest information about investment. Do not forget, recognize the characteristics of the right investment, do not get tempted and fooled by a bogus investment.
7. Change Credit Installments
Do you have mortgage payments? Especially mortgage payments. Then, is your mortgage payment in a conventional bank? If yes, you should re-think to move the installments or transfer them to the Islamic bank.
Why? Because Islamic banks apply a flat credit installment system aka flat during the period of credit taken. That is, if you take the house loan term for 15 years, then the installment amount is the same or does not change at that time.
Meanwhile, if you take a mortgage using a conventional bank, the installments you pay will change at any time because the bank interest follows the inflation movement. If inflation is low, then the credit interest is also low, on the contrary, if inflation is high, then the interest on credit is also higher because Bank Indonesia's benchmark interest rate also rises.
Indeed, credit interest in Islamic banks is relatively likely to be higher than credit interest in conventional banks. However, in Islamic banks there is no risk of fluctuations in credit interest payments. That is, there is certainty at the beginning of your credit installments.
8. Change Lifestyle
Change your lifestyle. This is important if indeed you are familiar with the lifestyle that is considered hedon, aka wasteful. Because with a lifestyle that remains equally wasteful, while the income is mediocre and there is no increase, then what happens is that your finances will be oversized and messy.
If you have a credit card, use the multifunction card wisely. Don't use it beyond the ability to pay bills. Take advantage of the benefits of having a credit card well and maximally, such as using it to shop from merchants who give discounts. So, you will actually benefit more from shopping with these credit cards.