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Friday, May 08, 2009

Facing Price Increase

Prices raise. That all people already know. Fuel rate increase, tariff phone - he said - will also rise. Basic Electricity tariffs will also go up. Price goods - be - will also rise. Each time the rate of fuel, telephone and electricity increase, the price of goods needs households are more likely to increase as well. Goods needs of households that can be goods household care, self care, and food materials.

For many families in Indonesia, the price increase is now going to make many families bear a very heavy burden. This is because the price increase is not always followed by the increase in revenue. If you have a family income of US$ 1,500 a month and can spend US$ 1,000 a month to pay for the cost of living, then with the price increase only 10%, the cost of living increases to US$ 1,100 a month. This means that, if the family was leaving the difference to US$ 500 (US$ 1,500 minus US$ 1,000), then going after the price increase, the amount of money that can be the difference down to saving is US$ 400 (US$ 1,500 minus US$ 1,100).

Now you can be what will happen if prices continue to rise without accompanied with the increase in revenue. Writing this time I will discuss about how to anticipate the increase in the price-increase.


Face only, price increase is inevitable, sooner or later. In the long term, how to overcome just one: the inclusion in the family. In the example above you already see that if the price increase and continue to occur in the family income does not increase, the difference in time your income and expenditure will become increasingly small. And not impossible, you finally have a deficit!

Try to imagine if the income in the family - for example - is US$ 1,500 per month, while from year to year, your cost of living continues to rise: First of US$ 1,000 and US$ 1,100 per month, and US$ 1,300 and US$ 1,500 per month, and US$ 2,000 and so on.

From which you will take the lack of difference? From your savings, right? How to when you will take these savings? Old-time savings will be exhausted if you continue to take. So in the long term, why do not you try to increase income in your family?

Yes, yes, you might be thinking: "Ah ... easy. The company where my husband is always work every year. So surely next year we in the family income will increase."

Or if you are looking for work and sustenance for the family, you will think: "Ah ... my company is always raising my salary each year. So what a fuss of the increase in revenue? My salary will be increase...

I do not overtly encourage you to continue to hope that your company or your husband's company will continue to raise the salary for this they provide. There are many large companies that did not even raise the salaries of their employees for several years. And that, probably not, can occur in your company.

I do not make you fear and invite you to think negative and pessimistic about the company where you or your husband's work. I only invite you to continue to try, but also want to anticipate the situation the worst though. So, if at this point you or your husband works on other people, why you do not have to open their own business or work with relies on your expertise? Thus, income in the family can be added.

Alternatively, you can also invest the money savings you have at this time to a variety of alternative investment products on the market. It is time to put your attention on the large amount of money that you have with how to invest wisely and try to benefit from it, and not simply because invest that money is nothing. Thus, the expected long-term investment you can give results that do not lose what you already get from your job every day.


As an alternative to the short term; you can set the expenses in your family. There is no one set of expenditure according to priorities. This means you can segment expenses according to your family needs. Then, buy the goods that are needed first, wherever possible and delay the purchase of goods that are luxurious.

Below are some tips that may be useful in managing the family spending the price of goods increase, as happened this time:

1. Try to buy goods in wholesale for the price.

One of the places that sell goods in wholesale is the market center. Do not forget that the goods sold in market are generally sold at a cheaper price than if you buy it in retail stores. In addition market center, then the other places you can go is a shop that can bargain the price. When you purchase household needs at the store or place that can bargain, try to buy at grocery to get a cheaper price.

2. Make the price as one of the main factors in choosing where to shop, what more goods shopping needs of households every day.

This is because the goods of domestic requirement are the need to be purchased regularly and repeatedly. So when you buy them in a costly, the price difference will be felt, than when you buy in places cheaper. One can not double anything.

3. Buy goods that are needed first.

Distinguish between wants and needs. Try to buy goods that are needed first by your family. Then after that - if needed - to buy goods that are desired. This is because - regardless of whether purchased in advance or behind, yet you still must still buy goods that are required. So, why not prioritize your money to goods that are needed? If you precede the desired purchase, and when the turn came to purchase goods that are needed, you feared the money has been exhausted.

4. Do not buy goods just because the ad.

Try to buy goods not only because it talked into the ad, but because you are looking for items and the need. Ad created for you to buy, not to simply give you the information.
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