Bounce back strong: How to keep inflation from hurting your wallet and your mental health

Do you remember this line?

“Hanggang saan aabot ang twenty pesos mo? (transl. How far can your 20 pesos take you?)” 

Popularized by an Ice Cream brand through its series of commercial skits in 2008, this sentiment embodies the struggle of an average Filipino when dealing with inflation.  

As prices go up, your purchasing power also declines—as illustrated by the funny adventures of the young man in the commercial buying a half-eaten burger, getting a one-sided haircut, and getting snuggled by a human sweater using his meager Php 20.

Nowadays, Php 20 will probably be too small for even half a burger. And for you to keep up with the rising living cost, you either have to trim down your expenses or succumb to cheaper or low-quality alternatives.

But don’t panic just yet. There are ways to protect yourself from the effects of inflation. 


Inflation: The silent budget killer

Inflation in the country continues to wreak havoc on everyone’s budget. The Philippine Statistics Authority already recorded an increase of 6.9% in September 2022. 

The middle class and the low-wage earners suffer the most with these price hikes. For someone who often lives paycheck-to-paycheck, inflation makes it more burdensome to keep up with the standards of living. 

Moreover, the increased cost of goods (e.g. food, sugar, gasoline, and energy) steals one’s opportunity to save. Failure to prepare for the unexpected leads to even greater financial insecurity.


How to beat inflation? Budget like a boss!

Financial management is hard during inflation. But it doesn’t mean you can’t do anything to rise above the price surges. The first step: building a solid budget plan! 

Your budget plan acts as your blueprint, which gives you a complete outline of your monthly expenses. It is one way to avoid mindless spending and lower your chance of financial stress

There’s no one-size-fits-all strategy for creating a perfect budget plan that works. When preparing a budget, you should consider these 4 things:

  • Adjust your lifestyle. You probably heard it multiple times: prioritize needs over wants. The key to alleviating the effects of inflation is creating more room for cash flow. To do it, cut unnecessary expenses to make way for more important purchases.
  • Earn a passive income. Having multiple streams of income is also important to cope with inflation. There are a lot of trending passive income ideas that you can try such as starting an online business, selling information products, & investing in stocks.
  • Make wise purchases. Inflation decreases the value of our purchasing power. Simply put, you buy less for the same amount of money. To compensate, you can always switch to cheaper alternatives or get the best deals by purchasing items on sale.
  • Look after your mental health, too. Is financial stress keeping you up all night? Money matters affecting your mental health is normal as it is connected to how we live and take care of our loved ones everyday. If you’re experiencing financial stress, write down your worries, then make a plan. Identifying your stressors is essential in helping you objectively see what you’re going through and determine your next move. 
  • Get financial help. Working your way around a tight budget can be a challenge. As your reliable financial buddy, SAVii is here to give you an extra boost with our affordable, reliable, and convenient salary loans. 

Most of us will agree: we only want to get the most out of our hard-earned money. But things like inflation call for a little sacrifice and innovation. And to thrive amidst the rising costs of living, you have to approach it with the right mindset and careful planning.