How to deal with inflation and the stress that comes with it
Some ways to deal with inflation is to review your current finances and cut out unnecessary spending. Since inflation increases the price of daily necessities (like fuel and groceries), the purchasing power declines. Inflation also affects bigger expenses like healthcare and childcare.
The good news is that there are some things you should (and shouldn’t) do during times like these to lessen the blow and stay afloat. In this Pacific Prime Dubai article, we offer tips on how to deal with inflation and the stress that comes with it.
Ways To Tackle Rising Costs
To deal with inflation, you have to evaluate your current financial situation and make adjustments. This means monitoring your spending, having an investment plan, and increasing income. Here are some ways you can reduce the impact of inflation on your lifestyle:
Cut Back On Your Spending
Review your spending habits to see which expenses you can cut out. A good tip is to look at your recurring bills or payment plans. It’s best to double-check your subscriptions to see if you are subscribed to anything that’s potentially wasting you money.
While you might have taken the time to compare health insurance plans before your first purchase, it’s likely that you’ve continued to pay the same fees (or more) every time the enrollment period comes around. Aside from insurance, internet, phone, and subscriptions are examples of bills that can be reduced or cut.
Be A Smart Consumer
An easy way to save money on groceries is to make sure you’re only buying what you need. By meal planning and carefully considering your shopping list, you can avoid throwing away produce. There are plenty of tips for effective meal planning online, such as:
- Marking the days of the week that you’ll have to prepare food
- Finding recipes that use similar ingredients
What’s more, consider secondhand items if you need clothes, furniture, etc. It’s common for expat families to give up a lot of possessions when they’re relocating so you could get great value for money.
Keep Investing
Thinking about where to put money during inflation? Once you have your emergency fund set aside (which should cover three to six months of living expenses), it pays to invest your cash flow. This will help you keep up with inflation, or even surpass it.
Many people second-guess investments when interest rates are rising and inflation seems to be worsening. But a robust investment plan should be able to handle the fluctuations, especially since your goal should be to invest for the long haul.
Increase Your Income
While it may take some time to increase your pay, realize that employees are in a good position to look for other options or ask for a better salary. It’s not out of the question to point to higher inflation and job performance to negotiate a raise or promotion.
Additionally, you can earn money outside of work. Do you have things that you could sell, such as clothes, furniture, or electronics? Or perhaps you could rent items out to generate regular cash flow, like your baby equipment, car, or home.
From tutoring to pet sitting, there are also plenty of side jobs that you can do from home or in your spare time. These ways may not be the quickest or easiest, but they can help cover expenses when needed.
How To Deal With Financial Stress
Regaining control of your finances is one key way to deal with financial stress. Inflation is one factor that impacts your financial stress, especially when you have a family to think about.
Financial problems can also cause major health problems due to the stress.
Financial stress can cause insomnia, weight gain or loss, depression, anxiety, relationship difficulties, social withdrawal, physical ailments, and unhealthy coping methods like alcoholism or drug-abuse. It’s important to tackle the stress before it gets worse for your mental health.
Here are some ways on dealing with financial stress:
Get professional advice
If you are dealing with any mental problems due to your finances, you can reach out to some organizations that offer counseling. You can seek advice on managing debt, creating a budget and sticking to it, finding additional work, or any other financial assistance you need.
It’s important to seek help as soon as possible to prevent the situation from getting worse. The more you pile on financial problems on yourself, the more stress and mental health problems will occur. It’s a vicious cycle that traps you unless you eliminate the stress.
Open up to family
Financial problems tend to affect the whole family, but it’s important to have your whole family support each other during this difficult time. Speak to your family about your struggles, but also listen to them about theirs.
Having a discussion with your family about your finances is a good way to figure out how to resolve your problems together, and to make informed decisions about what steps to take to improve your financial situation.
Go easy on yourself
Remember, anyone can get into financial difficulties and it’s not your fault. Inflation is something we have no control over, so it’s important to review your spending habits and see how you can eliminate excessive spending.
Don’t blame yourself if you are ever in any financial trouble, as almost everyone has to deal with financial stress someday. What’s more important is that you cut yourself some slack and focus on the parts you can control like your budgeting and income.
Go Over Your Health Insurance Plan With Pacific Prime Dubai
One way to eliminate financial stress is to secure an international health insurance plan while in Dubai. This can help reduce or even totally eliminate high medical costs since you have the right coverage for you and your family.
Whether you’re looking for international health insurance, property and casualty insurance in Dubai, or anything in between, look no further than Pacific Prime Dubai.
As a reputable insurance broker with over two decades of industry experience, we have the knowledge and expertise to compare insurance plans so you get the best match.
Contact us for impartial advice and a free quote today!
Jantra curates and reports on the results of Pacific Prime’s monthly newsletters, as well as manages Pacific Prime’s Deputy Global CEO’s LinkedIn posts. Complemented by her background in business writing, Jantra’s passion for health, insurance, and employee benefits helps her create engaging content - no matter how complex the subject is.
Growing up as a third-culture kid has given her a multicultural perspective that helps her relate to expats and their families while 8 years of working remotely have given her unique insight into hybrid work arrangements and enthusiasm for employee benefits.
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