The Colombian economy He is experiencing very difficult times. slowdown knocks on the door of the country and of the homes, and there are different factors that will influence the finances of the Nation and of the people on foot.
(See: This is how you can take care of your pocket, according to a Harvard expert).
One of those elements is inflation, which is linked to rising prices and which in January 2023 it was 13.25%, according to data provided by the National Administrative Department of Statistics (Dane).
Given this scenario, the best way to try to mitigate inflation, from home, is reduce expenses, increase savings and Invest in financial resources that increase in price at an annual rate higher than inflation.
(See: The household appliances that increase the electricity bill the most).
And the Nequi platform provides a series of recommendations to keep your finances healthy in times of high prices.
Every home, every person, has different types of expenses a month, like the fixed ones (things that must be paid for, such as services) and the variables (like going out with friends on weekends). To them, Nequi explains, he should add saving, “if you want to project your life towards something more than living day to day“.
“Divide your expenses into these three types and compare them with your income to see how much you have left over so you know how to optimize them. Knowing how much you spend is the first step to take care of your money in times of inflation“, explains the platform.
With a clear budget, the next thing is to keep track of variable expenses: know how you use your money on a day-to-day basis.
Some of the behaviors that you should analyze, according to Nequi, are:
– Small expenses: those that you think are insignificant, but in reality they are things in which your money goes little by little, like coffee, sweets.
(See: How to take advantage of high interest rates to save).
– Trends in your expenses: be clear about what time of the month or week you spend the most and avoid it, if you don’t have to.
– Emotional expenses: what you buy when you are sad, happy or anxious and that they are out of balance in your budget.
“Better financial decisions need to be made: trade outside coffee for your own glass and your own homemade coffee. Buy sweets when the market is available so that it is cheaper and you do not spend money on it every day“.
Households have increased their spending.
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Recycle, reuse and share
With prices skyrocketing, sharing may be a wise decision. And Nequi recommends:
(See: savings vs. debts: when is it good or bad to borrow or save).
– Share subscriptions to streaming services or cloud storage.
– If you are in the gym, but you don’t attend regularly, change it to a park and do an exercise routine at home or outdoors.
– If the clothes went up, then it’s time to think about circular fashion, a trend that allows you to buy secondhand or modify your clothes or exchange them with relatives or people you trust.
– Create strategies to save public services: avoid chargers for electronic devices connected without a purpose, leave the fridge tightly closed, take a shower in less time and wash your clothes in ecological processes of your washing machine or recycle the water it uses.
– Share the car, use a bicycle or public transport. If you have cheaper transportation alternatives, avoid using a car.
second hand clothes
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To combat high inflation, the Bank of the Republic has raised interest rates, which is, in other words, that debt will be more expensive.
(See: How to be smart about finances this year).
Borrow only if you really need it and if it will pay off in the long run. AND “If you already have debts, we recommend that you review the statements of the obligations that you have in force and verify if you have variable interest rates. If your budget allows it, make capital payments (additional payments) to the debts that have this type of rate“explains Neki.
Debts
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Fight ‘your inflation’
Inflation is measured by a percentage, but it is not the same for everyone. What happens is that There are products that, for different reasons, rise in price and that help define the overall figure.
Thus, Nequi recommends knowing “those products or services most purchased by Colombians and their price variations“(You can know the list and its variation by clicking here) and, with that information, be clear about what is uploaded so that you can replace with cheaper options.
“Economists call this ‘substitute goods’. In simple words, it is about giving a new air to what is consumed. Example, if meat is expensive, you can replace protein“, explains the platform.
(See: Citizen Income: how this subsidy will work and who will benefit).
Online purchases
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Use inflation to your advantage
Just as debts become more expensive due to rising rates, investments also give more returns. So If you have savings, it is time to invest: one option is the CDT.
(See: Families are spending 20% more on supermarket own brands).
“You have to understand that inflation is a natural phenomenon and, more than avoiding it, you have to learn to manage it“Nequi closed.
BRIEFCASE
