Current events have made things crazy expensive! I vent about inflation here, but I’ve also become more thoughtful about what and where I spend.
This blog was inspired by my physical therapist (PT), who’s been attending to me for my neck-shoulder-back pain since May. She usually rides with her husband from Manila to Makati, but with inflation taking its toll, they have decided to commute instead. It will cost her P25 pesos one way via LRT and only P11 if she takes the jeepney. So now, her budget is P22 per day. She also incurred savings by walking to the jeepney stop instead of taking the tricycle.
Photo by Jonathan Cellona, ABS-CBNnews
Can you imagine how the jeepney drivers are surviving? Especially now that diesel costs more than gasoline? Let’s do the math: a jeepney can accommodate up to 20 passengers. For 20 passengers at a P11 fare, the gross income is P220. The jeepney can take up to 8 trips or gross P1,760 per day. They usually consume 20 liters per day. The take-home pay with the diesel price at P88.95 per liter x 20 liters makes it zero income for them. The plight of the jeepney drivers indicates that inflation is real and happening.
For those who don’t know — this is what inflation means.
Inflation tends to be batted around loosely, but there is more to it than rising prices. Inflation also means that there is a fall in the purchasing value of money. High inflation decreases the value of money and will impact your purchasing power. Last month, the inflation rate climbed to 6.1%, driven by rising food prices and transport costs. It’s uncertain how long these inflationary conditions will continue. Experts predict global inflation to reach 7.9% this year.
I am choosing to be optimistic. We survived the 50.34 % inflation in 1984, caused by the devaluation of the peso, massive government spending, skyrocketing world oil prices, and a series of typhoons. And in 1991, inflation hit 19.26%, caused by the energy crisis, multiple coup attempts, and the eruption of Mount Pinatubo. I’m no economist, but historical data shows that this rise in inflation will eventually subside.
In the meantime, here are some tips to help you get by inflation:
1. Review your budget.
Take a look at your expenses. What are your essentials and non-essentials? Do you keep track of your payments? What can you cut back on? For instance, have you been going to Starbucks every day? Why not brew your coffee at home? How many streaming services subscriptions do you have? You may want to narrow it down to one or two that you often use? Note that my PT incurred savings by taking public transportation instead.
2. Set aside cash for emergency expenses.
Based on your budget, you will know how much you are spending per month. Set aside at least six months’ worth to keep you afloat in case a downturn happens.
3. Check your debt.
Did you take out a loan? Is the interest rate variable or fixed? A variable interest rate increases with a rising inflation rate. You can try to renegotiate your terms with your bank. It’s also best to avoid using credit cards as the interest rates tend to be higher. The current credit card rate is 3.5%.
4. Do yoga and meditate (yes, really!)
Fears may impair your judgment and self-trust every day. Do yoga exercises and sit to meditate for at least 11 minutes daily. The practice will keep you calm and steady and eliminate reactions to anticipatory fears and anxiety.
Money is always a tough subject to talk about, but it can affect our mental and emotional health and lifestyle. As we do what we can to save, budgeting is also a way to be mindful and in the moment. More than watching out for what you spend, may whatever it is you buy bring you true joy, especially in these challenging times.
In loving service,
Rosan
