Women and Inflation

3 Steps for Women to Beat Inflation

Okay, Inflation is alarming! Isn't it?

It is for those who do not understand the effects of it and what you can possibly not do to avoid it. Let us first define inflation. According to my reliable friend Investopedia "Inflation is defined as the rate at which the general level of prices for goods and services is rising and, consequently, the purchasing power of currency is falling"

Simply put, let's take for example my experience when I was starting in the financial planning industry in 2012, A brewed coffee in a premier coffee shop was at Php 75 but today, after 6 years, the smallest brewed coffee at the same coffee shop is now at Php 120.

Inflation will stay forever and whether we like or not, it will stay with us today and tomorrow.

So what now?

I believe that women play a crucial role in financial planning of the household because most of the time, we take care of the cashflow. Single women has a responsibility also not only to her own family, but a responsibility to herself to make sure that she makes the right decision to divert all extra cashlfows to beat inflation.

Here are 3 basic steps for you to plan ahead and divert the negative effects of inflation to your advantage.

Step 1: Revisit Your Cashflow

" Our income is always finite therefore we must be very wise in the way we spend it " - J. Randell Tiongson, RFP

You already know how much income you will have for the month, but for freelancers and professionals (just like me), yes maybe we don't have that exact figure but you may already have an idea on average how much your income will be every month.

Review your cash flow by taking in your Income Vs Expense first. Identify which is your basic needs and wants and from there, which of which you think you can take out from your expenses. One of the best expense to be taken out are those of expenses made for bad habits like smoking and too much alcohol or unplanned shopping spree!

Step 2: Look for Additional Cashflow / Source Income

After checking into your Cash flow and there is no more expense for you to take out, then you should increase your Income. There are a lot of opportunities created by information technology and I have friends who have setup their own office at home by becoming a freelance VA or a graphic artist who can work anywhere and anytime they want. If technology is not for you then dig deep within, maybe selling is for you and you may want to try a part time selling stint as direct seller of a product or a financial adviser.

Try to list down the things you can do, list down your skills and talents and learn to monetize them. You may want to check out Connected Women for greater opportunities and the group will form part as support on your needs.

Step 3: Invest

Nothing beats inflation but investment. Make sure to invest a portion of your income that is higher than the inflation rate. In investing, plot out your financial goal with questions such as; When do I expect that goal to happen?, How much do I need to save every month or every year for me to have that goal? and how long it will take for me to save to have that financial goal?

Just a reminder, make sure that you understand the platform you are using such as the stock market, investing into bonds, VUL (Variable Universal Life) or rental properties. Time, Knowledge and Money always play a role in these platforms.

Before jumping into any of the steps, email me at jendeedeguzman@outlook.com for questions. Hope to hear from you soon!

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