My 5 Advices to Beat Inflation Rate and Save Money

Since the pandemic started 2 years ago, the prices of commodities gets higher and the value of our money gets lower vs the US dollar. The inflation rate is now around 6% and if you will just put your money on a regular savings account with 0.05% interest then you should know that your hard earned money is just going to the drain in no time. I am not a financial guru or expert but I have read financial books and listen to experts so I learned a lot on how to beat inflation and save money in this trying times. Here are some of the advices I learned from them and would like to share them with you too.

My 5 Advices to Beat Inflation Rate and Save Money

Deposit in Digital Banks

Digital banks like Seabank, Tonik, CIMB and Maya are “in” these days because they offer higher interest rate compared to traditional/regular banks. They are also members of PDIC so you can be sure that your money around P500,000 and below are insured with them. The rate in these digital banks ranges from 3-6% per annum compared to regular banks that area around 0.05-1% per annum. You can use this saving calculator to check how much money can you earn in a certain period of time.

Save at Cooperative

Savings and Credit Cooperatives offer higher interest rate compared to regular banks, though they are lower than digital banks but the good thing is that they don’t deduct taxes on your savings. At Paco Savings and Credit Cooperative where I am a member the annual interest rate is around 1-2.5% per annum depending on the amount you have with them.

Buy Gold

I highly recommend for you to invest in gold. Throughout history, gold has been seen as a special and valuable commodity, owning gold can act as a hedge against inflation and deflation alike. I know that their prices gets higher because I am a gold jewelry reseller since 2020. It would be nice if you have some pieces with you that you can pawn or sell if you are in dire need of cash.

Open a US Dollar Account

I recently opened a dollar account because the peso value vs US dollar is getting weaker these days. It’s the lowest rate of all time. By exchanging your peso to dollar, you can preserve its value and even earn from it in the long run because it will earn interest while in the bank. You can even use this portfolio when you want to travel abroad and get a VISA.

Government Savings like Pag-Ibig MP2

This is the only thing I currently don’t have from this list, but I am planning to get one soon. Most financial gurus recommend this product of our government because you will earn a fixed interest rate after the maturity of your savings with them. Compared to mutual funds that depends on the stock market, this one I think earns more especially now that stock rate is quite low. MP2 is a voluntary program that provides a higher earning potential than a regular savings account. Your savings is invested by Pag-IBIG and will earn through dividends.

Besides these things I have mentioned, you can also start your own small business and earn around 20% profit from it.

Good luck and Happy savings!