Inflation, according to UAE financial experts, is on the rise as a result of various current worldwide crises. Experts are advising residents to think about how they manage their money to assist them cope with rising prices. “Rising prices have a corrosive effect on investments that cannot be ignored.” As a result, we must continually be on the lookout for investments that provide higher returns than inflation,” said Rupert J Connor, Partner, Abacus Financial Consultants.
Here’s how you beat inflation, according to experts. Individuals have prioritized investments based on their income. However, if you are currently investing, you should exercise caution. Experts suggest not to overlook any company’s, product’s, or services’ accomplishments and returns. Budgeting, according to experts, should also be a top priority at this time. If you haven’t budgeted in a long time, getting started now will save you money from the effects of inflation. Consumers will eventually pay more on any revolving debt if central banks raise interest rates. Credit card interest rates are likely to alter now that rates have been raised, usually within a billing cycle or two.
Anything you know you want and can afford may be better purchased sooner rather than later to avoid price increases. When it comes to rent, the most expensive item, Valecha advises that if a family is paying an extravagant rent or mortgage (more than 25% to 30% of take-home income), they should consider relocating to a new, cheaper home or refinancing their mortgage at a lower rate. Families should always have enough money to cover any unexpected expenses. Individuals should aim to save between 25% and 30% of their income.