We are currently in a situation where the prices of goods are getting more expensive & we are paying a higher price for everything generally. It is a sad situation where the price of goods is rising but our salary still remains the same. The rise in prices is partly due to war, pandemics & other factors. One thing for sure is many Malaysians are affected by inflation.

To be honest, overcoming inflation is not an easy task, especially for those who are not prepared for it. Over a long period of time, if you have been investing your money in fixed deposits, gold, stocks, mutual funds, EPF, or others, most probably your investments are able to beat inflation. But with the sudden rise of goods which is something that we are not able to control, what are the short-term & long-term solutions that we can do to just beat or survive the inflation?

Short Term

1. Source For Extra Income
Perhaps it is time for some of you to create an additional income stream. We used to think that having a side hustle can be difficult, but in recent years, as long as you are willing to spend extra time working, you can easily make extra money. The easiest & fastest way is definitely being a Grab driver or Grab Food rider. My understanding from some of the riders & drivers is that the demand for riders & drivers is high since the demand for the service is high. There are other options that you can try as well that can boost your income such as online selling, pop-up stall & lots more. It is easy as long as you are willing to spend your time doing it.

2. Plan Your Spending
We are currently in a situation where we see a rise in the prices of goods. Being creative with your spending will definitely help this situation. If you are keeping track of your spending over the years, you can always refer to your previous spending & try to match it with your current spending amount. For example, if your average expenses for food & groceries cost you RM500 a month & with the inflation, you are paying RM600 a month. All you have to do is to figure out a way to spend RM500 for both expenses. It is easier said than done but it is actually very easy. A few simple examples are to limit your eating out expenses, limit your coffee frequency in a cafe or switch to a more affordable diet.

3. Plant Your Own Vegetables
Recently, I bought my mum an aquaponics system for her to plant her own vegetable. Although it is meant for her to fill up her time but I personally see it as a long-term money-saving plan. When the pandemic started & we are forced to stay at home, many people started different hobbies, one of which include planting their own vegetables. I know many people who did that & even though we are in the endemic stage & life is getting back to normal, their hobby of planting their own vegetable remains and they are able to save some money from it.

Long Term

1. Invest In Yourself
Upgrading yourself should be part of a habit that you should do often. Picking up new skills, new knowledge or even taking up courses will definitely help you in your future. For me, self-development is important to stay relevant in my job, my businesses & even my passion for BJJ. There are a lot of different ways for you to upgrade your skills & knowledge which can be accessed for free. Whether it is free or paid, you should always find ways to upgrade yourself to ensure that your skill is relevant to your job and the market.

2. Invest Your Money
Cash is king especially when it comes to an emergency situation but if you have more than 6 months worth of cash savings, perhaps you should look into investing some of your money in investments such as gold, stocks, mutual funds, Robo-advisors & few other legal investments that are approved by the Securities Commissions of Malaysia. Do not invest in any money game which you may end up burning all your cash.

Conclusion:

If you have been prepared as per the long-term solution, a short-term solution is meant to be endured until the situation gets better or when you are used to it. If you do not have any long-term solution, you should start building it from now onwards to fight against inflation. You should also look into acquiring skills related to financial literacy to ensure that you are able to be prepared for any difficult situation.

OSS! 

You can also check out my latest YouTube video on How To Invest Like Warren Buffett: