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inflation crisis..my wantan mee is getting more expensive!!

Posted on | April 28, 2008

Just when oil crisis starts to cool down, we are facing another dilemma that shots us at the back..at least not from the bottom of the arse. Looking down at the red hot butt , it spells vividly….

..inflation…

Why does inflation happens? It’s a good question. I’m not an economic expert or some analyst , but I can describe it in a layman’s term of what is inflation. Prices of everything is rising!! This includes the rice you eat, the books you buy, the rents you pay, the property you wish to buy, the toilet paper you use, the coca cola you drink and etc.

Quoted in the papers, Vietnam is currently worst hit by this hidden economic tsunami with the inflation rate of 21.4% this month. Imagine the prices around you increased at 21% more…just an illustration. A wantan mee which cost RM3 will go up to RM3.60? How about rents? A friend of mine living in Singapore told me that his apartment rental which was previously $SGD 1000 increased to $SGD1400 at a national all year high 6% inflation rate.

Any suggestion to reduce the effect of inflation? SAVINGS does not seem to help.Imagine at the inflation rate of 6% a year and a savings interest of 3% on fixed deposits, our money in the bank seems to depreciate over time. WORKING does not seem to help either. Even with an increment of 4.5% a year does not seem to solve the problem. Another disadvantage of having a job as an only source of income is there is a stop cap on our income. As living expenses increases, it will directly increase the bottom line and squeeze us alive as there is limited way in increasing the income circle.

So one of the alternative is to engage in a business. Why is that so? Simple, a business which generates incomes does not have a stop cap.As product price and profit margin increases as inflation increase, it is in fact one of a good ways to generate income without a major setback. Learn and start to build your own business on the side. A good suggestion would be to be involve in a blog advertising network to generate some income. Another idea will be to build networks to market consumer goods for international market growth using the internet. Learning to invest would also be a good start as there are numerous investment vehicles worthwhile to check out such as insurances, property , mutual funds , FOREX and stocks. But all of this requires time and experience to learn. The question is ..are you ready and willing to pay the price? There’s no free lunch in this world today.

As a conclusion, the moral is we should be more creative and learn to generate income by all means besides hanging on to a job. Have fun and experiment new ideas. Malaysian are not spared from the regional inflation crisis. So, we ought to learn some other trade to have better security. We need to get out of our comfort zone! Any other fresh idea to generate incomes?

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