• 1. Have You Wondered Why Things Are Getting More Expensive?
• I believe you have came across the phase where a dollar today is worth less than what it will be in the future? 
• That is the invisible power of inflation my friend! 😕

• We have no control or ways to stop inflation. However, we have the ability and knowledge to overcome this through for instance, investing at a rate higher than the inflation rate to offset this phenomenon. 

• Meaning if the inflation rate is at 1% and if my money is able to generate returns of just 1.1%, my purchasing power (+0.1%) will remain the same as before. Cool right, you get the idea haha 😂 

2. What Is Singapore's Inflation Rate Like?

• Inflation is measured by the annual percentage change in the Consumer Price Index (CPI) (Mas.gov.sg)
• Usually I would gather the latest CPI data from the Singstat website under the 'Singapore Consumer Price Index' which is governed under the Department of Singapore Statistics.

Statistics Singapore - Prices and Price Indices - Latest Data (singstat.gov.sg)

• There are a few types of inflation rates. Out of all, the most important one I see as the benchmark will be the Monetary Authority of Singapore (MAS) Core Inflation

• Core inflation rate is the measure that excludes the components of "Accommodation" and "Private Transport". These are excludes as they tend to be significantly influenced by supply side administrative policies and are volatile. By doing so, this value shows the generalized price changes that are driven by underlying demand conditions. (Mas.gov.sg).

3 Ways to Calculate Inflation - wikiHow

• This is a basic formula to compute inflation rate. 

The rate of inflation from 2018 to 2019 August would have been (105.757-104.242)/104.242*100 = 1.45%

Meaning to ensure that your money does not lose its purchasing power overtime, you'll have to so-call find creative ways to make your money grow at a minimum rate of 1.45% or more per xxx time period to counter this impact. Make sense right? 😁

This is just an example, go and determine the core inflation rate yourself. 

Once you know what is this value, you will definitely stop looking at investments that give you interest rates per annum that is lower than your calculated core inflation rate. 

4. Situations Where I Tried To Overcome Inflation

• High Savings Account

Placing your money in a high savings bank account such as DBS Multiplier, OCBC 360 account, UOB One savings account etc.

Interest rates here are definitely higher than your normal savings account (only 0.05% per annum). 

However with the economy downturn, banks are also slashing the interest rates. siobs siobs....😞

• Cash Management Account

There are multiple accounts out there but for now I am only using Stashaway Simple. 

The risk will be higher than high savings bank accounts as the your money will be invested into a portfolio of funds.

• Robo-Advisors

This is a good alternative if you are ready to set aside some cash to invest into this.

I have done a blog to explain further on this. Stashaway

• Bonds

I used to do this but I stopped as the interest rate is just too low. Moreover, the pandemic has resulted in the interest rates dropping to a level which I didnt see the point in buying into this.

https://www.mas.gov.sg/bonds-and-bills/Singapore-Savings-Bonds

• CPF (applicable in Singapore only)

A national compulsory savings scheme which consists of three sub accounts mainly the Ordinary (OA), Special (SA) and Medisave (MA) accounts. Each account has its own properties and interest rates per annum. You can find out more directly from the CPF website as their policies will keep changing ever now and then.

• Stocks 

Stocks are a higher risk higher return kind of investment strategy which I am currently pursuing. Always remember to learn and understand what you are doing before investing into the stock market. 😃

• Side Hustle and Others

This can be anything from selling stuffs on Carousell / ebay to generate additional source of income etc.

There are many ways to go about overcoming inflation. No harm trying out the different strategies and see which method works best and its sustainable for you in the long run! 😁