Stories & Co.

Rising Cost – How to Confront Inflation

Contributed by Credit Bureau Singapore

You should have heard the news by now – rising consumer food prices due to the Malaysia’s export ban, increase in petrol cost for vehicles, electricity and even gas. How can Singaporeans now cope with all these rising cost of living especially when we are also accompanied with the new Goods & Service Tax (GST) rate change effective next year on 1 January 2023?

Since we are unable to control or stop these external costs from increasing, we can only do our part to start with managing and cutting down on incurring unnecessary expenditures internally. Here are some tips as a student or young adult that you can pick up to tide over this challenging period for yourself as well as your family.

1. Don’t go broke trying to look rich

Be frugal and realistic to your financial surroundings. Unless you already started having a stable stream of income or you do not have any financial obligations, it is advisable to cut down on splurging too much money on branded clothes or expensive restaurants. Instead, you might want to look for more wallet-friendly alternatives that can keep you sustainable in the long term. For instance if you are planning for your overseas graduation trip, you might want to consider going to neighbouring countries instead by taking a coach or budget airline instead. When you and your friends have truly adulted and holds a stable job, it is never too late to explore further countries.

2. Keep up with your budget plan

Budgeting can sometimes require a lot of discipline, but it is also an easy and straightforward way to manage your income, savings and expenses. This can be tailored to your lifestyle or needs. If you are currently working part-time jobs or generating small income on your own, it is the best time to start saving now. Budgeting is a quintessential skill of good money management, as it helps you curb overspending while having tighter control over your finances. As a student, you can generically allocate your budget into 3 portions – expenses savings and paying off your student loan. You can set weekly or monthly goals on how much savings you wish to achieve, this can also cultivate good money management habits in the long term.

3. Seek for an alternative income stream

Cultivate a habit of being financial independent, you can take up a part-time job or a temporary job. Not only can you have a stable income revenue, this is also a good chance for you to pick up useful work skills that you normally do not learn in school. In addition, you can start to build up your work resume at an early stage and slowly figure out the kind of industry you are interested in to study for your major. It would be a good time to be adventurous and explore different job roles yet at the same time, keeping yourself occupied during your school term breaks and holidays.

There are just so many ways one can actually counter inflations through managing our own finances first. It is important to cultivate a good habit of financial accountability and understand the risk of depending your life on credit terms. Start off with this article if you intend to apply for your first Credit Card after you have graduated: https://storiesco.tpih.sg/2022/06/getting-your-first-credit-card-read-this-first-2/

Remember that it is important to always be practical and aware of your own financial surroundings so you do not fall into debts or get caught in struggling to pay off your bills.

Lastly, where can I read up more on Credit Bureau Singapore?

If you are interested to learn more about tips to manage your finances and how to maintain a good credit reputation, be sure to follow and like our Facebook page @creditbureausingapore or go to our main website at: https://www.creditbureau.com.sg/index.html to find out more!

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