Key for savers: 5 tips to reduce the impact of inflation

The Minister of Economy, Luis Caputoannounced a package of 10 economic emergency measures what includes an increase in the official exchange rate of 118% that raises the price to $800, in addition to other key decisions such as cutting Energy and Transport subsidies. This will directly impact inflation which already had a projection of 20% for December and February but which, with these measures, will accelerate even stronger. That is why Ámbito put together a list of key tips to try to survive to the brutal price increase.

Credit card: responsible use and in our favor

In times of high inflation The credit card It can be a double-edged sword. But before talking about the benefits of using it, we will say how We should NOT use plastic. The credit card is not an extension of our salary.It is important to know the purchasing power we have and try to moderate consumption. Otherwise we can use the card to spend more than we earn and We will generate a ball of debt. You should also avoid paying only the minimum at all costs. The minimum amount is generally equivalent to 5% or 10% of the debt and the rest is made up of interest, commissions and taxes. If this practice is repeated, canceling the debt will be practically impossible.

Now let’s see how we can use it to our advantage. In high inflation contexts, interest-free or very low interest installments are very convenient. Even paying an expense in a single installment from month to month could even be convenient. You have to know perfectly the discounts that banks promote. The days they apply discounts on payments on purchases to the supermarket or fuel, for example. If we are unable to pay the full amount, it is important to know that we can pay the amount we wish. Suppose we have $200,000 to pay this month and we can only cover $100,000. We can pay that amount and they will only think of interest on half of it. Knowing the closing date is key. We can take advantage of the closing of the card to make important expenses just after that key date and get the longest period of time until paying the first installment.

Inflation-Prices-Supermarket

Ignacio Petunchi

Advance expenses, look for offers and maximize the effectiveness of services

A summer is coming in which there will be a constant mark-up of prices. It will be important analyze and compare prices in supermarkets and, If necessary, advance, when possible, wholesale purchases. Maybe several family members or friends can get together and buy in quantity. bags of vegetables or directly to producers or factories. Today it is not so complex and can be programmed online. You have to be alert to the offers and discounts on key days. It is also necessary to be aware of spending what is strictly necessary.

Other important increases will occur in prepaid services, car insurance, internet, telephonyetc. It is important, especially in the provision of services, to communicate with the supplier companies and ask for improvements. More than once when calling the internet provider company they offer promotions for 6 or 12 months. A key tip when shopping at the supermarket will be Review prices and compare brands through previous prices per liter, per kilo, per m2, etc. Mercado Pago will also be a good place to check prices when in doubt as to whether something is expensive or cheap.

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Make your savings profitable with virtual wallets or investing

There are many people who say they cannot save and do not know financial instruments to do so. But leaving the pesos sitting in the savings account all month is a big mistake. Today, theVirtual wallets provide the same benefits as a bank account since they allow you to pay and have money at all times with the advantage that they generate a small profit. So, Ualá, Mercado Pago, Naranja are some of them that completely free allow generate interest by having the money in the account until you put it to use.

For those who want get your money’s worth with a little more complexity You can open a client account in your own bank or in a stock broker. This will allow, for example, to acquire MEP dollar or invest in instruments such as Mutual funds or for the most risky, acquire Actions of Argentine companies, cedars (foreign companies listed on the local stock exchange), Sovereign bonds in dollars or pesos Negotiable Obligations (they are corporate bonds, that is, company bonds).

Be very careful about getting into debt with personal loans

Many times when trying to refinance the debt on a card or when requesting a loan they only notify us of the TNA (Annual Interest Rate) and not he Total Financial Cost (CFT) which is the total value of a credit. This measurement takes into account the interest rate and also for different expenses linked to the granting and management of the loan or credit. Only the CFT will be the one that indicates what will be paid in full for debt financing. The CFTEF (it would be the Annual Total Effective Financial Cost) can also be useful.

Make a budget and control expenses ant

In a context with high inflation It is very complex to make a monthly budget that is successful, since it will vary from month to month. However it is necessary to know that We have fixed expenses and which are variable. For prevent consumption that is unique (for example birthdays, gifts, etc.) and see the best way to deal with them. Also in times like these it is very important to be alert about the expenses (taxis, expenses at kiosks, coffee when passing by, etc.) are those expenses that we make almost without realizing it and that can take up to 20% of your salary.