Just because you can pay for it does not mean you can afford it

Inflation, or the trend of price increases while the purchasing value of money decreases, was expected to reach a 12-month high in February, peaking to 5 percent if not more.

This is a double-edged sword for consumers having a hard time stretching their budget. Not only will money be worth less in the market, expect the costs of necessities and wants to also be more expensive.

Until life and inflation return to normal, or as close to pre-pandemic, keep a tight watch on your expenses.

If your officemate bought a new car, or your neighbor got a new TV, or your friend has a nice bag you also want, do not be tempted to also make a purchase. Maybe you can pay for it, by getting a loan from your company, or using the installment plan in your credit card.

But just because you can pay for it does not mean you can afford it. Consider the total amount of loan you will incur plus interest and how long you will have to pay for it.

Source: https://news.abs-cbn.com/blogs/business/03/01/21/preparing-your-wallet-for-a-longer-gcq

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