In the era of inflation, how can workers protect their purchasing power?

1. Understand the absurdity of inflation and purchasing power📈

Inflation means a decrease in the purchasing power of money—salaries remain the same, prices rise, and the cost of living becomes even more stressful. Hong Kong's inflation rate has remained between 2–4% in recent years. As the cost of essentials like food, rent, transportation, and healthcare continues to climb, workers must be proactive to combat inflation!

2. Increase income: Let your salary catch up with the price of goods🏃♂️

Actively seek salary increases and promotions

Report work results to superiors regularly and strive for annual performance bonuses and base salary adjustments;
Aim for internal company levels, cross-department transfers or job hopping to increase your bargaining power.

Diversified part-time jobs and side business development

Use weekends or after-get off work time to do part-time jobs: purchasing agent, tutor, online store, freelance writing, etc.
Use your expertise or interests to turn them into a source of income, such as graphic design, web development, and translation services.

Passive Income and Investing

Research savings, short-term bond funds, fixed deposits, and bonds with higher interest rates;
Consider low-entry ETFs, dividend funds, or real estate investment trusts (REITs) to accumulate passive cash flow.

3. Smart spending: spend money wisely 🛍️

Budgeting and recording expenses

Use mobile apps to keep track of your expenses, analyze your spending monthly, and cut out unnecessary subscriptions and impulse purchases;
Set the "50/30/20 principle": 50% necessities, 30% flexibility, and 20% savings/investments.

Price comparison and discount strategies

Compare prices online or scan the QR code to choose the cheapest or the one with the biggest discount;
Subscribe to merchant electronic coupons, cash rebate cards, and membership points, and search for discount codes before making a purchase.

Consolidated purchasing and group buying

Daily necessities with high repurchase frequency (rice, oil, canned goods) are mainly purchased during promotions or through group purchases;
It is more cost-effective to purchase large packages with friends or colleagues, and share storage space to avoid waste.

4. Reduce the cost of living: Smart optimization 🏠

Transportation and energy conservation

Monthly subway and bus passes are more economical than buying them individually; for short distances, you can use shared bikes or carpooling.
Use LED lights, energy-saving appliances, turn off standby power, and smart sockets to help save energy.

Housing and Shared/Subletting

You can choose areas with lower rents, such as the New Territories, which have convenient transportation and reduce rental pressure;
Share a unit and share the rent, water, electricity, and internet expenses.

Health and Medical

Conduct regular self-examinations and make good use of public hospitals and clinics;
Purchase high-value or floating-value voluntary medical insurance for major illnesses or hospitalization; community clinics are available for daily outpatient treatment.

5. Improve your skills: Prepare for a rainy day ⚒️

Lifelong learning and certification

Enroll in government-subsidized vocational training centres, professional associations or evening college courses;
Obtain professional certificates (such as PMP, CPA, CFA, TOEIC/IELTS) to increase your salary.

Mastery of digital and AI tools

Learn advanced Excel, data analysis, and Python automation to improve work efficiency;
Make good use of tools such as ChatGPT, Notion, Trello, etc. to improve productivity, earn extra income or save time for further studies.

6. Mental and health management: Maintaining fighting spirit🧘♀️

Stress relief and time management

Regular exercise, hiking, and short trips to relax;
Set boundaries between work and rest to avoid overwork affecting your earning ability.

Build a support network

Share financial goals with family and friends and monitor them together;
Join a financial management or side hustle community to exchange tips and business opportunities.

7. Editor’s Summary💡

Everyone needs to be the CEO of their own finances. Fighting inflation isn't just about saving; it also requires increasing income, spending wisely, reducing costs, and constantly upgrading skills. By taking these steps, you can maintain your purchasing power in an inflationary era, and even increase your wealth against the market trend, leading to further, more stable, and happier lives! Keep it up! 🔥🚀