Staying Afloat Amid the Economic Crisis

July 22, 2022

“I don’t know how we can still afford to buy our maintenance medicines.”
“How can we pay for our food and bills?”
“I’m already cutting my expenses. Sometimes, I just skip eating meals.”

“I wonder how low-income families can make it.”

Do you notice it too? Things are becoming more expensive each day.

According to the Philippine Statistics Authority, our country’s inflation in June 2022 was 6.1% which is higher compared to 3.7% in June 2021 and 5.4% in May 2022. But, President Bongbong Marcos said during his press conference last July 5 that 6.1% is “not that high”.

PSA mentioned that the uptrend is caused by the increase of services and commodities in raw food items, alcoholic and non-alcoholic drinks, fuel, raw materials and many more. Economists predicted that inflation will likely get higher in the coming months.

What is inflation and what causes it to climb?

Inflation is simply defined as the increase in prices and loss of purchasing power over time. Very high inflation is bad for the economy because it makes it harder for people to buy the things they need and want.

Ideally, this could be an advantage for our OFWs due to the rising exchange rate of overseas currencies. However, Filipino families back home don’t feel the benefits of strong dollars or other powerful currencies because the prices of commodities locally have also increased. And as spending weakens, more Filipinos are likely to lose their jobs.

Here are some points to consider to help you keep up:

Shop smarter. Be more conscious and start evaluating your spending. Make a list of items that you need to buy when you go grocery shopping; Eat at home instead of eating out. and; Avoid unnecessary purchases or visiting the mall or online shopping sites.

Tip: Leave your credit cards at home. When you feel like spending, sleep on it first.

Use public transport. Maybe it’s time to give your private car a rest for a while to save yourself from repairs and maintenance. Although driving is convenient, it’s still cheaper to commute these days.

Tip: Make sure to wear your face mask, bring alcohol, and take a bath when you get home to stay COVID-19 free.

Pay bills on time. Always check your bills to avoid missing due dates and penalties.

Tip: Check for payment facilities that offer cashbacks.

Look for multiple sources of income. Having more than one source of income increases your cash flow and prevents future financial problems.

Tip: Explore part-time jobs, freelance gigs, and other business ideas.

Build an emergency fund. Set aside money every payday for your emergency fund. It can be your source of funds for unexpected expenses such as job loss or medical bills.

Tip: Recommended target for your emergency fund should be at least 6 months of your monthly expenses.

Invest in health. Getting a health insurance plan can prepare you and your family for sudden hospital confinements and shield your savings from going down the drain.  

Tip: Avail affordable and reliable health coverage from Paramount Direct.

Paramount Direct offers HealthCare Cash Plan with family protection, for ages 20 up to 50 years old. It covers you, your spouse, and children (from 0 months up to 20 years old). Receive cash for your daily hospital confinement due to any injury or illness including COVID-19.

The cash benefits provided by our HealthCare Cash Plan are given directly to you so that you can have money to spend on medicines, treatments, and even paying utility bills or day-to-day expenses and just focus more on getting better.

Apply for our HealthCare Cash Plan online at www.paramountdirect.com, for as low as PHP731/month. Based on insurance age of 20 and Family Plan 500.

With our current situation, it’s important to stay ahead and develop immediate actions to lessen the impact of inflation and manage our cash flow effectively. 

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