Struggling To Cope With Inflation: 5 Things To Be Avoiding, And What We Should Do Instead

This article was written in collaboration with the Consumers Association of Singapore (CASE). All views expressed in this article are the independent opinion of DollarsAndSense.sg based on our research. DollarsAndSense.sg is not liable for any financial losses that may arise from any transactions and readers are encouraged to do their own due diligence. You can view our full policy here.

We are experiencing one of the toughest economic environments over the past decade due to rising inflation, higher commodity prices, and unprecedented interest rate hikes. This could be a particularly difficult time for some, who may struggle to cope with the unexpected rise in the cost of living, which may lead to taking some undesirable actions as quick-fix solutions.

In such times, we can take inspiration from the quote by Robert Schuller, “Tough times never last, but tough people do!”. Though it’s an oft-quoted phrase in the army to motivate soldiers to overcome the pain and complete their training, it’s also applicable to our everyday lives.

The decisions that we take to overcome our current financial struggles can be crucial as they may cause us to be in further debt. In this article, we will share some things that you should avoid doing, even when times are tough, and what you could do instead.

1 Stop Making Impulsive Purchases

2 Do Not Borrow Money To Fund Day-To-Day Expenses

3 Be Mindful To Not Overspend On Holiday Trips

4 Avoid Cancelling Insurance Plans Because Of Tight Cashflow Concerns

5 Resist The ThrowAway Culture

However, the frequent replacement of gadgets might be costly, especially if they can be repaired for less than the replacement cost. For example, a 43-inch LED television might cost between $200 and $300 to replace its motherboard compared to a full replacement, which might cost at least between $700 and $900. Similarly, when our computers start to lag, we could consider replacing or upgrading some of the computer parts, like the RAM, storage device, graphic card, or power supply unit. These upgrades to individual parts might make the computer run faster while keeping the overall cost low compared to a full replacement.

Alternatively, we could “Do-It-Yourself” or DIY some basic and simple repairs by watching self-help video guides or even attending repair workshops to pick-up new skills. These small actions would not only lead to big savings but also reduce society’s e-waste problems.