How to deal with inflation and the stress that comes with it
If there’s one thing that can mess with your budget, it’s inflation. It increases the price of everything from fuel to groceries as purchasing power declines. With rising inflation affecting more people, many are left wondering how to cope with rising costs. In the UAE, inflation is predicted to rise to 2.2% in 2022 from 0.6% in 2021.
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The good news is that there are some things you should (and shouldn’t) do during times like these to lessen the blow and stay afloat. In this Pacific Prime Dubai article, we offer tips on how to deal with inflation and the stress that comes with it.
What to do during inflation
Instead of losing sleep thinking about how to beat inflation, take a deep breath and make the situation more manageable by going back to the basics. Essentially, that means monitoring your spending, having an investment plan, and looking for ways to make more money. Some ways you can reduce the impact of inflation on your life include:
Cut back on your spending
How often do you review your spending habits? Now is a great time to look over your bills and see where your money has been going. From there, you can get a better idea of what you can cut out or reduce.
A good tip is to look at your recurring bills or payment plans. While you might have taken the time to compare health insurance plans before your first purchase, it’s likely that you’ve continued to pay the same fees (or more) every time the enrolment period comes around. Aside from insurance, internet, phone, and subscriptions are examples of bills that can be reduced or cut.
Read on: How to save money on petrol as UAE fuel prices rise
Be a smart consumer
No matter what you cut out, you’re still going to need the essentials to survive. An easy way to save money on groceries is to make sure you’re only buying what you need. By meal planning and carefully considering your shopping list, you can avoid throwing away produce. There are plenty of tips for effective meal planning online, such as:
- Marking the days of the week that you’ll have to prepare food
- Finding recipes that use similar ingredients
What’s more, consider secondhand items if you need clothes, furniture, etc. It’s common for expat families to give up a lot of possessions when they’re relocating so you could get great value for money.
Keep investing
Thinking about where to put money during inflation? Once you have your emergency fund set aside (which should cover three to six months of living expenses), it pays to invest your cash flow. This will help you keep up with inflation, or even surpass it.
Many people second guess investments when interest rates are rising and inflation seems to be worsening. But a robust investment plan should be able to handle the fluctuations, especially since your goal should be to invest for the long haul.
Increase your income
Businesses are having a tough time hiring people at the moment. While it may take some time to increase your pay, realize that employees are in a good position to look for other options or ask for a better salary. It’s not out of the question to point to higher inflation and job performance to negotiate a raise or promotion.
Additionally, you can earn money outside of work. Do you have things that you could sell, such as clothes, furniture, or electronics? Or perhaps you could rent items out to generate regular cash flow, like your baby equipment, car, or home. If you do become an Airbnb host or something similar, just make sure that you do it legally.
From tutoring to pet sitting, there are also plenty of side jobs that you can do from home or in your spare time. These ways may not be the quickest or easiest, but they can help cover expenses when needed.
Manage your anxiety
When you’re dealing with a difficult financial situation, it’s imperative to notice what you can and cannot control. Inflation, war, and economic cycles are things that are entirely out of our control. That means, they happen no matter what we do. What we do have control over is how we deal with it.
Realizing this can reduce some of the weight on our shoulders and allow us to see the situation more clearly. Instead of blaming or shaming ourselves for being in the situation, we can think about the steps to take to overcome it.
Go over your health insurance plan with Pacific Prime Dubai
Whether you’ve had your health insurance plan for years or are looking to secure a new one, it helps to ensure it meets your needs and is within your budget.
Whether you’re looking for international health insurance, property and casualty insurance in Dubai, or anything in between, look no further than Pacific Prime Dubai. As a reputable insurance broker with over two decades of industry experience, we have the knowledge and expertise to compare insurance plans so you get the best match.
Contact us for impartial advice and a free quote today!
Jantra curates and reports on the results of Pacific Prime’s monthly newsletters, as well as manages Pacific Prime’s Deputy Global CEO’s LinkedIn posts. Complemented by her background in business writing, Jantra’s passion for health, insurance, and employee benefits helps her create engaging content - no matter how complex the subject is.
Growing up as a third-culture kid has given her a multicultural perspective that helps her relate to expats and their families while 8 years of working remotely have given her unique insight into hybrid work arrangements and enthusiasm for employee benefits.
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