Tuesday Topic - Hefty Healthy!

Tuesday Topic Of The Day:

Surviving Inflation

So inflation, What Is It?

Inflation is the decline of purchasing power of a given currency over time. A qof prices, often expressed as a percentage, means that a unit of currency effectively buys less than it did in prior periods.

Inflation can be contrasted with deflation, which occurs when the purchasing power of money increases and prices decline.

KEY TAKEAWAYS

Inflation is the rate at which the value of a currency is falling and, consequently, the general level of prices for goods and services is rising.
Inflation is sometimes classified into three types: Demand-Pull inflation, Cost-Push inflation, and Built-In inflation.
The most commonly used inflation indexes are the Consumer Price Index (CPI) and the Wholesale Price Index (WPI).
Inflation can be viewed positively or negatively depending on the individual viewpoint and rate of change.

Those with tangible assets, like property or stocked commodities, may like to see some inflation as that raises the value of their assets. quantitative estimate of the rate at which the decline in purchasing power occurs can be reflected in the increase of an average price level of a basket of selected goods and services in an economy over some period of time. The rise in the general level.

In the past years with covid-19 and other underlying issues inflammation is one of the main factors of why the gas prices are through the roof!

So what is there to do? How can you and I survive the increases of prices?

Well, I for one am not a financial expert but with the power of research I have a few solutions enabled to make do!

Substitute

Enjoy the same types of purchases but substitute lower-priced options. Go ahead and buy that new car, for example, but get a Chevy Spark ($12,170 to $16,435 manufacturer’s suggested retail price) instead of the Mini Hardtop ($20,450 to $24,100 MSRP) you had your eye on. (Better yet, buy a used car for even more value.)

Consumers already are making some price-conscious substitutions to keep up with inflation. Writes the Wall Street Journal:Chipotle Mexican Grill Inc. this year raised steak prices by about 9 percent and chicken prices by about 5 percent.

“We have, in fact, seen some customers shift from steak to chicken,” chief financial officer Jack Hartung told analysts Monday.

2. Buy generics

Giving up your loyalty to brand names gives you protection from inflation in many categories. You can find equivalent quality (read and compare labels to be sure) by switching to grocery store brands, generic prescription products, store-brand over-the-counter medicines and store-brand clothing, to name a few examples.

3. Ask for a raise

Now asking your Supervisor and/or manager for a raise it’s a good idea to take this advice. If you recently started a job, wait a minimum of six months to ask for a raise. Most employers are more likely to give you a raise if you have been with the company for at least a year or more. If you have been with the company for multiple years, then you can ask once a year.

Over the last six years, an average of 31 percent of organizations gave average raises of 3 percent or higher. In 2022, 44 percent of organizations are planning to give pay increases higher than 3 percent. In January 2022, inflation was 7.5 percent higher compared to a year earlier—a 40-year high.

In fact, about 85% of companies tell Pay scale they are worried about inflation, but most aren’t giving pay increases to match it. Last month the annual inflation rate hit 7.5%, according to the latest consumer price index.

Inflation is bad for employers because they have to spend more to keep their employees from looking for better wages somewhere else. In order to keep those workers, employers may need to raise wages along with inflation rates, offer better benefits, or change the way they operate.

But at the end of it all it’s up to you to decide if you’re getting paid a fair wage. Talk to your boss when it’s the right time and even talk to your co-workers and don’t be scared to do so. Legality, It’s your right to discuss your salary information with your coworkers is protected by the federal government. According to The New York Times, the National Labor Relations Act states that employers can’t ban the discussion of salary and working conditions among employees.

By far the best investment you can make to be prepared for an uncertain financial future is an investment in yourself. One that will increase your future earning power.

This investment begins with quality education and continues with keeping skills up-to-date and learning new skills that will match those most needed in the not-too-distant future. Being able to stay on top of a business’s changing needs may not only help to inflation-proof your salary, but also recession-proof your career.

I hope all of you found the article helpful and please try to be financially smart and stable!

Also make sure to check out my sources to learn more about how to protect yourself from inflation affecting you.

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