Save Your Money During The Inflation. Steps To Overcome The Economic Crisis

Amal Ali 02 Feb 2023

Economic news is now dominating the public scene in Egypt. The life of the Egyptians revolves around the latest news of the dollar rate increase and the prices of gold today.

With all this news, the main dialogue remains about how to get out of the economic crisis and solutions to overcome the inflation that currently dominates not just Egypt but the whole world economy.

It is not only Egypt that is facing this economic struggle, the crisis is global. With the succession of events, starting from the Covid-19 pandemic, through the Russian-Ukrainian war, and ending with inflation, the entire world is currently in a dilemma, and everyone is looking for a way out of this impasse.

In previous articles, we talked about many topics related to real estate and ways to invest successfully in the property sector. But on today's topic, we will share with you steps to overcome the economic crisis, and you will get to know what inflation is and why it occurs, as well as we will provide you with steps through which you can preserve and save your money.

If you are interested in the real estate sector, we recommend the following articles that will benefit you:

What is inflation?

To be able to face any crisis, you must first understand its nature. We listen throughout the day on talk shows and news to the term inflation, but what is inflation and how can the inflation crisis be a reflection in the average citizen and affect his daily life?

The term inflation is considered one of the most commonly used economic terms, and the term includes a group of different economic conditions.

What is inflation? Economic inflation is defined as the continuous rise in the prices of consumed goods and services during a given year. Inflation is measured according to a unified index.

Inflation affects the general level of prices and leads to a reduction in the purchasing power of individuals because in this case the amount of goods and services that can be purchased becomes limited to the income available to each individual.

What are the causes of Inflation?

The inflation crisis does not come as a sudden problem, but it is the result of a variety of economic factors. The causes of inflation vary, including the following:

The rise in the price of raw materials and the cost of production. The Russian-Ukrainian war is an example of this reason, as the war affected many of the goods that are imported from this country

An increase in demand and consumption of commodities with a decline in production, which leads to an increase in prices
Low level of profits and wages
The devaluation of the currency against the prices of goods and services, and this is what we are currently witnessing from the dollar crisis

How do you preserve your money during inflation?

In light of these crises, the greatest focus for each individual is on how to get out of the economic crisis with the least losses and preserve the largest amount of individual savings.

Certainly, the rates of price increase represent pressure on every Egyptian family. But some situations and crises cannot be avoided, so the individual should deal with them.

In the following points, we are trying in this paragraph to present a set of steps that can reduce the size of losses and preserve a larger percentage of your money.

Control expenses and get rid of excess expenses

At the forefront of the steps that help you overcome the inflation crisis is prioritizing and calculating your basic expenses. This financial clarity will help you to know your basic needs and enable you to avoid unnecessary and non-essential expenses. Always try to avoid the temptation to buy.

Shop wisely and provide the essentials first

It is necessary while doing the shopping process for your basic needs to save. You can search for less expensive options, which saves you a percentage of the money or change your shopping place.

Also, try to boycott the greedy merchants who raise prices unjustifiably. And always remember that your continued purchase from them encourages them to continue these practices.

Look for any new income opportunity

In these periods, it is a good idea to look for any additional source of income. There is a wide range of selections to start with and you can find what suits you best. Starting from using your car for delivery services, running projects from home, and selling handmade or homemade products. E-commerce is now considered one of the most successful activities that are growing, increasing, and controlling the market.

Invest part of your savings in stable sectors

Investing is an essential step that every individual should think about, regardless of his age or specialization, and it is always advised to invest early to avoid falling into crises, but investment at a time of economic stress remains one of the decisions that can save you.

Investing differs from the previous step in that it helps you to preserve your savings and your capital because it enables you to operate your capital and also obtain profits through it. There are many methods that you can use to start investing. Continue reading the next paragraph to learn more.

The last step is not to panic and avoid acting upon your fear

Many people fall into the trap of fear and panic during times of crisis, which exposes them to lose because they make some wrong decisions or leads to their feeling of constant fear.

Do not expose yourself to this pressure and remember that you do not need to buy products and goods more than your need to avoid buying them at higher prices later. It would be better to look for ways to rationalize and find alternatives.

In addition, the purchase and storage of goods by individuals leads to an increase in the inflation crisis because it reduces the goods and increases the volume of demand.

Will investment protect your money during the economic crisis?

There is no doubt that the stability of capital leads to the loss of savings because they are in a state of stagnation and do not achieve any returns or profits, and keeping money in a liquid form leads to a loss of its value with time.

Therefore, the decision to go to investment is always sound, and not all individuals have to invest in huge sums, but it is sufficient for you to deduct a portion of your savings to invest in an activity that suits your special circumstances.

Investing part of your money provides you with an element of financial security because it allows you to obtain profits and additional income besides your main job. There are many areas of investment that you can enter into, and each area provides a set of advantages as well as a set of challenges. Here are a handful of investment suggestions you can start now:

Deposits and bank certificates
Investing in gold
Investing in real estate
Food and retail

Read this article to find out more useful information about investing in real estate and gold

Secure investments at the present moment, real estate or gold?

The role of the Egyptian government in overcoming the economic crisis

The responsibility to overcome any economic crisis rests with both the government as well as individuals. Each of the two parties has a strong and effective role in containing the repercussions that may result from any economic crisis. For its part, the Egyptian government has drawn up a plan to overcome the crisis and ease the burdens on citizens through a set of decisions and activities.

Supporting the private sector and increasing its participation in economic activities
Focusing on industrial investment to increase production and fill the deficit. This step is considered one of the most important points that receive full attention in the current period, as we are witnessing the opening of many industrial projects, and the city of Tarbol comes as the largest national industrial project in recent years. Learn about this city through the following article: Tarboul Industrial City, your comprehensive guide to the city.
Reducing public debt and rationalizing the dollar. With the rise in dollar prices and the crisis caused by the sudden and successive increase in the dollar, all citizens' activities were affected, and this increase affected prices directly. Therefore, it was inevitable that some decisions were taken to ensure the inflow of hard currency.
The most important axes that the Egyptian government is working on are social support and protection, which is represented in expanding the base of citizens benefiting from social support programs, adding more numbers to the Takaful and Karama programs, and increasing control over the Egyptian market to ensure mitigating the effects of high prices.

In Inland, we are always interested in providing you with all the information that will guide you and help you to make successful investment decisions. Through the Inland website, you can browse all new real estate projects and the latest real estate news, as well as browse all weekly articles.

For real estate consultation, you can contact us at this number 01003366453, and the Inland team will answer all inquiries.