Budget control: are we in a money crunch?

Factors essential in handling day to day expenses from bankruptcy

07:57 03 October 2013

During hard times, everyone but particularly homemakers are always vigilant for possible ways to stretch one’s budget as well as for possible price hikes especially on regular commodities used on a regular basis in the house.

When shopping for food and basic necessities, do not be brand conscious. Not all branded products offer a fantastic product in the same manner that not all cheap products are of low quality.

 

Before going to the supermarket, make a list of what you need so that you avoid buying things which you do not actually need. Just because the store has a sale on and you bought something with really big discount does not mean you save a lot. The question is do you really need what you bought?

• Rising inflation

How does rising inflation affect the consumers? This rise in process of basic commodities limit our buying power since we need to spend more to buy a product. Such increase will hinder the consumer to be able to buy another product because the budget for that was already used for a more essential product.

When you have a savings account, try putting that money where there is better interest rate to pre-empt the budget.

• Increasing house prices

Increasing prices of houses are expected to continue for the next few years as the population grows, construction of new houses is not able to meet the demands.  Those who are considering buying a house as a big budget will find it more difficult due to the big demand. While the supply is limited, the demand is more. However, banks offer cheaper rates and you may take advantage of this time while mortgage rates are less.