How to Save to Beat Inflation

A word that has repeatedly qualified the Nigerian economy be it on social media, news channels, or print media, is Inflation. It's become such a buzz word even the not-so-financially/economically aware Nigerian now understands what the implications of inflation are. 

Inflation is one of the many things that negatively affect the economy, so it is important to know how to combat it.

In this article, we’d be sharing all you need to know about inflation and how you can combat it. 

What is Inflation?

Inflation simply means the general increase in the prices of goods and services and a decrease in the purchasing power of the public. This means that whenever inflation occurs,  prices of commodities have become higher than they initially were and you can no longer pay for a product or service at the price it once was.

An example is:

In January 2022, the price of a loaf of bread was around N300 but as of the date of this post, it costs an avg of N700 and it's been predicted that it may rise to N1000 by the Premium Bakers Association of Nigeria.

This is a result of inflation.

What is Inflation Rate?

The inflation rate is the percentage at which the prices of goods and services have increased. It is recorded as a percentage (%). An example is: Food inflation has risen by 19.5% as reported by Nairametrics.

How does Inflation affect the prices of goods and services?

Inflation causes prices to significantly go up (increase). This increase affects the ability of individuals to pay for certain goods and services. Inflation causes a product that was once N1000  to become N1500  or more.

This increase can occur continuously or sparingly. But for the economy we're currently experiencing, it has been continuous. This has called for the need to develop processes that enable us to either reduce its effect or prevent it from affecting us.

This is where SAVING comes in.

How to Beat Inflation

Among various reasons to save, one of the most important reasons is to reduce the effect of inflation.

The best way to save is to earn on the amount being saved, and the best way to earn is from a high-interest yielding savings account. This is because as prices increase, the amount you have to buy the things you need reduces. If you're not watchful, you will no longer be able to afford those things.

This is how to go about saving:

Choose a high-interest saving account. 

You're in safe hands! Eyowo offers you 13% per annum on your savings. That's an amazing offer!

Decide on the amount you'd like to save. 

You can decide based on the current price of the item, then increase the price by 20% and divide it by the number of weeks or months you want to save.

Set up automatic/direct debit to your savings account. 

When you automate your savings, it reduces the temptation to break them or miss a payment. Eyowo makes it this seamless for you, get started now.