What is inflation anyway?
Inflation is nothing more than the increase in prices of products and services in a given region, over a period. And obviously with the increase in prices the purchasing power of consumers decreases. Generally those who suffer the most from the effects of inflation are salaried workers.
The indices that measure inflation in Brazil are the INPC (National Consumer Price Index) , applied to families with income up to 6 minimum wages and salaried workers, and the IPCA (National Extended Consumer Price Index) , applied to families receiving the amount of up to 40 salaries from any source of income and residents in urban areas.
How does inflation impact the family budget?
But to what extent can the inflated economy cause problems in the family budget? It is very difficult to have control over these effects, but there are some ways to shield and avoid losing money in times of crisis in the economy.
If you are self-employed, work with commerce, know that the best way to avoid the effects of inflation is to join it! Passing on inflation in the price of the products and services offered is the best way to continue making a profit on your revenues.
Tips for dealing with inflation!
There are great ways to protect against inflation when it comes to investments. Investments, in addition to guaranteeing stabilized resources when related to inflation, can also bring profits depending on the fund. Inflation-linked fixed income securities are an example of investments that protect us from the effects. Other ways, still talking about investments, that we can mention here, are:
– The purchase of shares that manage to pass inflation in the price of their products.
– Real estate investments, which rarely lose money when buying a property, are a way to bring us favorable returns.
A third tip, although very obvious, often goes unnoticed, consumerism.
Controlling consumption should be a basic rule in a family budget, but often this is not the case. We end up consuming more than we should, choosing the most expensive and buying what we don’t need. So it is always good to analyze before making a purchase, make price comparisons and look for cheaper options, so it is possible to cushion inflated prices.
As we mentioned at the beginning of the article, it is very difficult to control the effects of inflation, but we can keep control of our budget because this by right only belongs to us and taking care with intelligence and looking for the best actions, we can ha