Cover image was created using canva
Inflation in the prices of goods and services is fast becoming a global thing. Reading through some blogs on hive, I noticed that asides from my country Nigeria, other countries are seriously affected by this inflation whereby prices of things increases, which in turn decreases your purchasing power of our monetary value. This is so wrong that monetary policies are not set in place to curb these excesses rather the struggling masses get to suffer the effect of these rising prices. Its so bad that this decrease in purchasing power of money affects all areas of our personal finances, from savings to budgeting and even investments. Nigeria is still badly affected by the rise in the exchange rate of the dollar against the naira, goods got so expensive that businesses closed up and people could not afford what they used to afford before, and they run into constant debts from owing.
Inflation can have negative effects on people's personal finances, this simply means that it makes them to spend more than they used to. Just like what is happening in my country Nigeria, the decreasing power of money is so bad that what is not supposed to be appreciating is appreciating at the moment. For instance, just last year December I was planning to buy a gadget and as at that time it was still at an affordable price, but fast forward to this year this month is specially the price has tripled and there's nothing anyone can do about it. The problem now is that if you don't get that gadget now there is probability that the price will keep increasing. This simply means that the same amount we use to purchase some set of goods previously, that amount will not be able to sustain that quantity of goods presently.
Another impact of inflation on people's finances is the fact that it makes it difficult for people to maintain their standard of living, things have become expensive that budgets will increase or be adjusted, spending will increase and even expenditures will increase as everything just keeps going up. Hence the need to maintain this standard of living would lead to you and individual tampering with their savings or investments.
All these are happening because the government all the central Banks are not employing adequate monetary policies that should handle the affairs of the people's well being. Even the government of the country are not doing the writing to ensure that people can navigate through the effect of this inflation rather they come out to share more palliative that are not sustainable and diminishes over time. The best thing they can do is to increase the wages of the workers employee more citizens to occupy jobs spaces that are vacant in the economy so that people can strategize their income to suit their expenses.
All this why the inflation has been going up dollar has been rising up prices of goods and services has been increased in doubling and tripling their price. The government are still stuck in paying a minimum wage that is insufficient to workers.
The March Monthly Prompt by is still very active, it's an opportunity to take on topics of your choice and write on them. Check the link above to participate.
Thank you for stopping by my blog...
Posted Using InLeo Alpha