Save your money Now !!

On March 16, the US Federal Reserve or the US Central Bank launched a policy of raising interest rates for the first time in 4 years to control the rise in prices or the inflation rate in the United States, which reached 7.9%, levels, a first of its kind in forty years. It is a quarter of a percent of 0.25% and it will proceed toward raising interest rates until the end of this year.

As expected, some central banks directly started raising interest rates, such as the Saudi, India,Egypt,France ,Kuwaiti, Emirati and Bahraini central banks as their currencies are affected by the value of the US dollar.

Moreover, oil export contracts are currently being settled in the US. dollars. The last foreign central bank to raise interest rates (until the time of writing this post )was the Egyptian,Indian,Arabia Central Bank wherein it raised interest rates by 1% .

A crucial question pops up here:
How should people be dealing with?How are they supposed to manage their financial affairs during times that witness a significant rise in price levels?

I will try to tackle some of the basic questions that are of interest to all of you Certainly, I hope you understand that Discussion of all aspects of the matter can not be fully done in one blog post .

Dealing with the crises and challenges you face every day in order to overcome them in the right way this post will contain the most important initial advice, or a part from a simplified practical guide with clear solutions.

Give attention to what I am going to say from A to Z, as all the coming content is completely connected to each other .

Point one: Do not buy expensive or luxury goods! The rational person, in the simplest possible definition, is the one who acts according to reason or logic, and therefore their behavior if making a financial decision will be in their financial interest.

However, behavioral economists have discovered that a large proportion of the people do not act rationally such as when they buy luxurious or expensive goods that they do not even need.According to many sober and significant studies, a large proportion of consumers .Those who buy luxurious goods are in a financial situation that does not allow them to buy these goods at all Instead of someone buying a smart phone at a fair price that does all the required tasks that they may need, we find that many people choose to pay a lot of money to buy luxurious phone brands just to show off the brand they were able to afford, no matter that this pricey phone performs the same functions as the fair price phone does.

Well, if your financial capabilities allow you to buy this expensive phone, that's okay, do whatever you want but why does someone with a 350$-800$ salary, for example, afford to buy a phone or TV for 700$ or more?

Behavioral economists say that this approach usually manifests a certain feeling of self-satisfaction wherein a person lacks self-confidence and does not respect themselves, so when he/she buys these luxurious goods, especially if they are financially unable, he/she enhances their self. esteem, giving them more self-confidence.

The second reason is that a person's purchase of luxurious goods, though neither their income nor their financial capacity allows them to buy them easily, is to generate a sense of belonging to an upper rich class, this boosts a false sense of superiority to everyone around them, to be satisfied with their social class so to speak.

However, sometimes this feeling turns against you According to a study conducted by Boston College and Harvard Business School , spending your money on luxurious things is likely to lead to Negative outcomes make you feel worse than before.

This uncomfortable feeling that you feel after purchasing a luxurious good you can not financially afford and you don't need is called the impostor syndrome from luxury consumption.

Boston and Harvard researchers gave the study the same name lest , I bore you with this, you can never measure your worth or success by exaggerating the consumption of luxuries good in general, otherwise, the result will be a shortcoming in things you actually need , and an increase in the size of your debts reaching levels that you cannot repay afterwards, thus wrecking your financial situation .

To proceed with the second point, don't buy goods whose prices have been subjected to price shaking .

Simply put, there are commodities which prices have risen dramatically in the recent few days in a way that is not commensurate with their costs on the real ground.

This happens as a result of an exaggerated reaction from the companies producing these commodities motivated by greed and desire to make the best profit from the current tense situation.

However, when the situation gets better, these goods will come close to their fair price Moving on to the second important point: Do not be carried away by installment offers.Can you imagine it when the same person whose salary is 300$ goes to buy a phone for 1000$ in installments?

And this is often what happens because he simply does not have cash Certainly, you have noticed the emergence of new companies in the world whose business model is all based on installment sales, whether this commodity is sold at interest or at the price of cash .

These companies are the equivalent of "buy now, pay later" .

In general, the business of installment companies flourishes much more in times of economic crisis because people are tired of their financial conditions and they resort to buying in installments.

As a consequence In a nutshell, I have two problems with buying in installments, and they are enough to keep you away from it completely. I hope you pay attention as this point is really important..The first problem: that installment offers make you more. Susceptibility to what behavioral economists call impulsive buying, which is a term that means making purchases of goods or services without planning for them and often without you needing them.

In other words, you suddenly rush and buy something because you were exposed to an outside stimulus, you are doing this without thinking.For example , you only have 300$ , so if you think about buying luxuries or something that is not necessary, you may be able to buy a slightly expensive watch that you do not need ,but if you decide to buy goods in installments, you can buy the expensive watch, iPhone, PlayStation and sun glasses if possible.

All you need is to pay the first installment of each of these goods, and when it is the time to pay the rest of the installments, you may be able to figure out how to manage them.

The rest of these installments take us to the second problem, which is the possibility of defaulting on paying the installments, especially if you do not have certain assets that you can sell to pay the indebtedness.

The installment is a debt that must be paid my dear, and if you do not pay it on time, you will get into trouble, in addition to paying interest for delaying, you may be imprisoned as well, God forbid. One might say that this is a weak and unlikely possibility, well, according to a study conducted by the American company Credit Karma about 40% of users of “buy now, pay later” services failed to pay at least one of the installments in America , this implicated them in late fines.

Last Year, 2021 In Australia, the Afterpay company collected $64.6
million in late fines from installment service users. Of course, this will leave you in a terribly bad mood , which may last for months or years until you pay off your debts .

You may find yourself jobless at any time, with your income being cut off, so how will you be able to pay your installments? That's why I highly recommend buying in cash if possible ,as the saying goes, if you can't afford something, think twice about whether you really need it or not and don't forget the first point that we discussed before.

The third point: raise your value to increase your income ,any good or service has a price, your effort at work has a price which is the salary you receive at the end of each month, if you look around, you will find people doing the same job as you and getting paid more than you.. Why? Perhaps because they are more experienced than you, this is one of the main reasons indeed, so you have to raise your value for a salary hike.

You should not waste your time even if you have finished your daily tasks, as long as there is still spare time you have got to learn whatever skills you lack. If your salary is 300$-500$ , ask yourself, what is the difference between you and those who receive 3k$-10k$ in the same field? Skills or experiences!

Well, sharpen your enthusiasm, get your skills augmented, gain experience and last but not least make your goal to reach the same position.

As I previously said, watch the time you spend as it tends to be what you are on now.

The Fourth point: do not quit your job to follow your passion Yes, I'd strongly advise anyone not to leave their stable job to follow theirs passion or enthusiasm especially in times of global economic crisis, be wise, do not take risks in such times as this will probably cost too much. If your job ends at 4 or 5 PM then you have from 5 to 9, maybe even 10 PM, as spare time, five hours per day in which you can follow your passion,whatever the way you wish, learn new skills, discover new fields - do whatever you want, if you are a head of a family and busy with responsibilities making you have no spare time after work, just keep your job, do not resign as long as you have no other guaranteed source of income.

Only if you have a better job offer with more advantages do it I highly recommend not quitting your job to launch a private business.

On the other hand, establish a company or a project while you are still in your job, no matter how hard to cope up with both, never leave your job unless your project is really fruiting needing your full focus and there is a solid ground opportunity among other competitors in the market The fifth point: Don't be reckless in launching business Yes, I mean it, in times of economic crises and recession, do not launch a business recklessly.

Of course, there are great opportunities in times of economic crises , but such difficult times are dangerous, and you are not a millionaire after all you may lose the money you have and become financially broken, so please do not waste your money on a project you hardly studied...Do not invest in a field until you carefully Study it in detail, consult domain experts, and the greatest experience remains that you work in this field with your bare hands.

Do you want to open a restaurant?

Then work in a restaurant.

Do you want to run a used-car business?

Work in a used-car showroom, and so on

Be careful! Don't rush out and pool your money in a mutual fund company, as these types of financial vehicles are not trustworthy.You may think that things will work differently with you and you may be the exception, I do not think so, my dear! Sure you can be the exception, but this is less likely to happen, the more likely it is that you will lose your money and remain broke...Most people always think of themselves as the exception, and this is not wrong, by the way Ambition is a positive attitude.

The mistake is that you are really acting as an exception According to National Business Capital, an American company specialized in financing and servicing small businesses; 90% of small projects or small companies fail.

What is meant by small companies here are those that have 500 employees or less, do you get me? 90%! So, slow down, be wise, think twice about every step, and consult domain experts.

Sixth point: Regarding gold First of First, let us quickly get acquainted with the state of gold prices.

On the day of the US Federal Reserve's decision to raise the interest rate, which is March 16, an ounce was worth 1917 dollars, after the decision was issued the second day, the gold prices rose to 1950 dollars, and then they went down again at the time of filming the episode to approximately 1925 dollars, Why did the Fed's decision not reduce gold prices? Simply because raising interest rates by a quarter percent by the Federal Reserve was not enough amid the uncertainty that the global economy is experiencing now, therefore the market was not affected as expected.

It could have been affected if the raise was half percent for example. This is what one of the members of the Federal Open Market Committee, James Pollard, actually voted for, but most of the committee members saw that 0.50% could cause a shock to the markets, so they decided to start with a of 0.25% and continue to raise during the upcoming sessions, as there are still 6 meetings scheduled for the US Federal in 2022.

It is likely that the US Federal Reserve will raise the interest rate in each session by 0.25%, the meeting will take place in two consecutive days. Keep attention to these dates as they are of a huge significance: May 3/4 - June 14/15 - July 26/27 - September 20/21 - November 1-2 - December 13/14.

It is expected that gold prices will decline as the US Federal Reserve continues to raise interest rates. In the same context, why did gold prices rise in france,egypt,india,moroco...after the devaluation of the pound?

Naturally, its prices rise due to currency differences, as is the case with other commodities that are linked to international prices.

Well, given current events, should we buy gold or not?

In my personal opinion, which you may agree or disagree with, I do not prefer buying gold at these high prices, which are 1925 dollars an ounce, as it will probably decrease during the coming months, so one would better wait until its price drops. Below 1750 dollars an ounce and then buy it as we explained before, you must buy spikes, not gold crafts ,choose a reputable company that has a good reputation in the market, don't buy from small or unknown shops just because the workmanship is less .

Point seven: Health is the most important thing, Economists and experts see health from a farther an d deeper perspective as one of the most important financial assets to be accurate, it is the most vital and valuable asset our Lord Almighty gave us for free, so one must preserve it Preventing diseases saves you huge amounts of money, other than the wasted times that cost other huge sums, there are dozens of economic studies and researches that measure the economic costs of disease, and among the costs of disease are what economists call the value of lost output, and this is the result of stopping or declining productivity, and It affects not only you and your financial status, but the economy of the entire country.

Your body must be preserved as much as possible in order to stay well and not be financially drained in the long term, and therefore maintain your health, sleep enough, eat healthy food as much as possible, reduce fast food, and consume as much as possible according to what is available Certainly, neither you nor me have the same options considering our health status that Cristiano Ronaldo of course has Cut down on junk food, sugars and unhealthy food.

So, this is possible for anyone to apply regardless of their financial level and we all know this. Do this an everyday routine, then if you get sick it would be the lord's will, and this is another separate issue, but other than that, there are many steps that you can take in advance to preserve your health with a little hard work. To make myself short, as I said, there were some suggested steps to reduce the effects of the crisis and overcome the shock of price hikes.

You may agree or disagree with me about them. In the end, they are just personal viewpoints, but they are based on specific, informational and logical data.

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