Prices are rising, and the money is less

Since the outbreak of the epidemic in 2020, the global economy has been showing a downward trend. In order to boost the economy, the central banks of the world's major economies, represented by the Federal Reserve and the European Central Bank have adopted loose monetary policies for helping the economy out of difficulties.

However, after the central banks of various countries pursued loose monetary policies, global inflation began to strike, and now the prices of commodities such as food and oil have begun to rise wildly. As a result, not only the inflation in emerging economies such as Brazil, Russia, and Argentina has exceeded 5%, but even the inflation rate in developed countries such as the United States and Europe has hit a new high in decades.

In my country, from the first half of 2021, economy was affected by global imported inflation. First, the price of imported raw materials has risen. In the second half of last year, the price of domestic agricultural products has been rising. Now the prices of vegetables, fruits, eggs and meat have risen a lot compared to before, especially the prices of vegetables such as tomatoes and cucumbers have increased by 2-3 times. Pork prices also began to rebound sharply. The cost of living for ordinary people has also increased significantly.

In the face of inflation, rising prices, and depreciation of the money in the pockets of common people, how should we deal with it? I advise everyone to "do three and two no", let's talk about the "three things" first:

First, learn how to manage money. Many people blindly pursue high-yield investment products such as stocks, funds, and foreign exchange, and are unwilling to spend their money on relatively low-risk products such as bank wealth management, time deposits, and national debt. As a result, high income corresponds to high risk, which is not resist inflation. Therefore, during inflation, we should learn some financial knowledge and try to avoid investing in high-risk products.

Second, you must continue to invest in yourself and learn more skills to improve your earning ability. If there is one more side business to make money, life will be less affected. Now all kinds of writing, video, Q&A, audio and other creations on the Internet can make money. In addition, you can also use your spare time to deliver food, drive car etc., which can also increase your income. In fact, after learning more survival skills, even if you lose your job during inflation, you can still find an ideal job.

Third, we must increase income and reduce expenditure. During the inflation period, when income does not increase, it is necessary to reduce unnecessary daily expenses as much as possible.

let's introduce the "two don'ts": First of all, don't blindly speculate on real estate now. The reason why domestic prices will soar is mainly because real estate investors see that nowadays the real estate market has no positive profit-making effect, so funds flows to the commodity market. Then, if you invest in real estate at a high price at this time, it is likely you will be trapped in the high level of housing prices, and you will not be able to sell it or rent this property to others.

Finally, try not to start a new business. Because, when the economy is in a good situation then the probability of business success is high, but if you start a new business during inflation, the probability of success is very small. It is suggested that those who want to start a business will wait until the domestic real economy fully recovers, and then choose to start a business.