Global Inflation and Saving

Inflation Waves in 3 Years and Saving Ratio

1. What are the causes of global inflation?

2. What is an ideal saving ratio when inflation hits frequently.

1: Global Inflation

When goods and services prices rise globally, we can call it global inflation.

Global Inflation results from problems occurring at the world level, whether a Geo -politics, war or a virus.

Global inflation becomes an indicator to measure global problems as most central banks act when the problem occurs worldwide.

Global Inflation in the Last 3 Years

Between 2020 to 2021: The Corona Virus effect

Creating a disturbance in the supply and production of goods and services

Between 2022 to 2023: The War between Russia and Ukraine

Starting of War creates an inflation effect as more and more countries are increasing their defence budget and facing high oil prices :

Probable Starting in July 2023: Termination effect of Russia-Ukraine Grain Deal

With the Termination of Russia Ukraine Grain Deal, there is an additional disturbance in the global food supply, which may create a new inflation wave.

Inflation has a ripple effect, so an increase in one product will create a rise in other products or services.

2 . The Saving Ratio

The ideal saving ratio should be 20%, but saving a lot is difficult when inflation occurs frequently.

Here are a few tips for maintaining a high saving ratio

Inflation also creates high-interest rates, so it's time to avoid significant buying with debt and maintain liquidity as much as possible to remain stress-free in times of rising prices and increase the cost of Living.

• Avoid unnecessary buying, which use for a long-term purpose.
• Avoid Panic Buying and Paying higher for goods or services
• Maintain Budget with Grocery Bill
• Frequently check the wastage of Food and Grocery items so that you can buy what you need and avoid buying extra goods which expire and create a waste of money.

It's essential to remain conscious in financial decision-making. This means taking the time to research and understand your options before making any significant investments or purchases.

It can be tempting to jump on the new opportunity, but it's essential to consider the long-term impact on your finances.

By staying focused and informed, you can make intelligent financial decisions that will benefit you in the long run.

Remember, your financial future is yours, so make the best choices possible.

The cost of Living in an Urban City will rise in the coming decade, so try to beat inflation by saving and investing in diversified assets.

Note: Incredible Hint is educational purpose information only, so contact your professional financial planner before making any decisions