Holy Trinity College of Camarines Sur

Don Domingo B. Fortuno St., Santiago, Bato

S/Y 2023-2024

TITLE: “INFLATION INVESTIGATION: UNDERSTANDING

THE IMPACT ON CONSUMER PURCHASING POWER”

Members
Arrabis Clares C.
Belmonte Joshua
Buquid Abegail
Cordez Anna G.
Marcaida Rammel
Sanchez Marry Joy L.
Segui Romnel A.

Erwin F. Pontillias
INSTRUCTOR

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 Holy Trinity College of Camarines Sur
Don Domingo B. Fortuno St., Santiago, Bato
S/Y 2023-2024

I. INTRODUCTION

In present day inflation has become a global phenomenon, “Inflation

is the thief of all wallets”, it is the root of all economic problems. Inflation is
commonly understood as a situation of substantial and generally it is the
increase in the level of price of goods and services in an economy and a
consequent fall in the value of money over a period of times. It is one of the
problems that our country is suffering today. According to C. CROWTHER,
“Inflation is state in which the value of money is falling, and the prices are
rising.” When price level rises due to inflation, the value of money falls
when there is a persistent rise in price level, the people need more and
more money to buy goods and service to enable the people to meet their
daily needs of consumption of goods and service when their prices are
rising, their incomes must rise if they have to maintain their standard of
living.

It is typically caused by demand outpacing, by demand out-pacing is when

consumer demand outpaces the available supply of many types of
consumer goods, but the historical reason for this phenomenon can be
further broken down into demand pull inflation, cost-push inflation
increased money supply devaluation, rising wages and monetary and fiscal
policies.

Demand pull inflation, cost-push inflation, and Built-In inflation are the
causes of inflation. When demand for goods or services rises faster than
the supply of those goods and services, the result is demand-pull inflation.
Cost-push inflation occurs when overall prices increase (inflation) due to
increases in the cost of wages and raw materials. Built-in inflation (which is
sometimes referred to as a wage-price spiral) occurs when workers
demand higher wages to keep up with rising living costs.

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Don Domingo B. Fortuno St., Santiago, Bato
S/Y 2023-2024
Impact of inflation is the loss of purchasing power. As purchasing power
erodes, many feel the impacts on their budget. But those on a low income
or

fixed income often feel the effect the most. As inflation takes hold, it's
important to monitor how well your income keeps pace with the changes.
When people expect prices to rise, they often demand higher wages to
prepare for future price increases. Producers and businesses tend to
respond by raising prices, which causes inflation to rise. Consumers lose
purchasing power regardless of what the inflation rate is whether it's 2% or
4%. Inflation is the rising price of goods and services over time. (Amadeo,
K.,2018). In short, inflation increases our cost of living. Once our cost of
living increases, our power to purchase certain goods and services will
decrease since it decreases the value of our Philippine Peso.

II. STATEMENT OF THE PROBLEM

The general problem of the study is the effect of inflation on the consumer
purchasing power.
the study sought to answer the following:
1. How inflation affects a family’s purchasing power?
2. What are the strategies they can use to mitigate its impact?

III. SIGNIFICANCE OF THE STUDY

The study is deemed beneficial and significant to the future
researchers, they will find this study useful and may use as a reference if
they want to conduct a broader approach in relation to the topic of this
research. The current government may also find this research beneficial,
they can use the insights of his people who got to experience the effects of
inflation. Students and teachers can also use this study to gather
information.

IV. SCOPE AND LIMITATION OF THE STUDY

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Don Domingo B. Fortuno St., Santiago, Bato
S/Y 2023-2024
The study will primarily focus in understanding the inflation and its
impact for the consumer’s purchasing power, on different sectors and to the
society. It also includes the Philippine inflation rates and the government
policies to manage it.

V. RESEARCH

In the Philippines, inflation are being managed and handled by the Bangko
Sentral ng Pilipinas (BSP), with the main goal of limiting and normalizing
the rate of inflation in order not to affect the living of the Filipino people and
for the economy to run smoothly. Section 3 of Republic Act 7653 or the
New Central Bank Act, signed in 1993, stated that the BSP’s primary
objective is “to maintain price stability conducive to a balanced and
sustainable growth of the economy. It shall also promote and maintain
monetary stability and the convertibility of the peso.” A change in the
government ruler also plays an important role in the increase or decrease
of inflation rate.

Noticeable inflation increases were observed during the time of then-

presidents Ferdinand Marcos, Cory Aquino and Gloria Arroyo dating back
to 1970s which were affected by various factors like the devaluation of the
peso, massive government spending, skyrocketing world oil prices,
pernicious policies of debt-driven growth, crony capitalism, multiple coup
attempts, global rice crisis, and a series of typhoons.

PHILIPPINES PRESIDENT TERMS

Gloria Macapagal Arroyo – 2001-2010

Benigno Aquino III- 2010-2016

Rodrigo Duterte – 2016-2022

Bongbong Marcos- 2022

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 Holy Trinity College of Camarines Sur
Don Domingo B. Fortuno St., Santiago, Bato
S/Y 2023-2024

INFLATION RATE (Gloria Arroyo’s Term)

The year 2005 saw a continued rise of consumer prices, particularly those
for food, energy, and transportation. The higher prices for food items in the
first semester were chiefly a result of the adverse effects of the El Niño dry
weather on agricultural output, especially on rice and corn production.
Meanwhile, the combination of tight worldwide supply, limited spare
production and refining capacity and rising global demand drove up world
oil prices to historic highs, which led to higher domestic pump prices. This
led to adjustments in minimum wages throughout the country, as well as to
hikes in transport fares and utility charges beginning in the second half.

Towards the end of 2005, however, inflation slowed down as the impact of
the El Niño dry spell on food prices dissipated and world oil prices eased.
Nonetheless, food and energy-related items were still the major
contributors to inflation during the year. The BSP’s estimates show that of
the 7.6 percent inflation rate for 2005, among others, food accounted for
3.0 percentage points; fuel, light and water, 1.3 percentage points; and
transport and communication, 1.4 percentage points.
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Don Domingo B. Fortuno St., Santiago, Bato
S/Y 2023-2024

The Philippine economy slowed down sharply in 2008. GDP growth in the
first three quarters of 2008 fell to 4.6 per cent, compared to 7.5 per cent in
the same period a year ago. The jump in the inflation rate following a sharp
rise in food and fuel prices was the first big setback. Inflation averaged 9.4
per cent in the first 11 months of 2008 after recording only 2.8 per cent in
2007.

Another factor was the sharp deceleration in construction activity following

a surge related to the 2007 elections and the initial implementation of
President Macapagal-Arroyo’s ambitious infrastructure program. The US
recession, which officially began in December 2007, was also a likely
contributor to the slowdown.

INFLATION RATE (Benigno Aquino III)

The country’s GDP growth averaged 6.2 percent yearly under Aquino.
Prices had been stable for most of the time under Aquino. Average inflation
rate dipped at 3.2 percent in 2012, the lowest in five years.

In 2011, the Philippines jumped 10 notches to the 75th spot among 144
countries in competitiveness. In 2012, the Philippines jumped to 65th place.
The Philippines moved further up on the list to 59th place in 2013 while in
2014, the Philippines climbed seven places to 52nd place. In 2015, the
Philippines ranked 47th, which was the fifth highest-ranking among Asian
countries.

When the Duterte administration took over in 2016, it was left with a P1
trillion budget after the Aquino administration failed to spend it on
appropriated items. According to data from then Budget Secretary
Benjamin Diokno, P1.02 trillion worth of notices of cash allocation (NCA)
was left untouched. According to a report by the Department of Budget and
Management (DBM) the underspending—on infrastructure and other
capital outlays—was largely due to the ban on projects immediately
preceding an election.

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Don Domingo B. Fortuno St., Santiago, Bato
S/Y 2023-2024

INFLATION RATE (Rodrigo Duterte)

During President Rodrigo Duterte’s 4th year in office, the monthly inflation
rate in the country stayed below 3%. Despite the coronavirus pandemic,
the government reported an inflation rate of 2.1% in May 2020. Months
earlier, it even dipped to 0.8% in October 2019, the lowest in over 3 years.

Inflation and the pandemic

the COVID-19 outbreak upended both supply and demand, said both
experts.

The sudden reduction of economic activities due to the lockdown resulted

in demand disappearing, as consumers focus on purchase of basic
commodities. In addition, not every job can be performed at home in
services or industry, so this is why we not only had reduced economic
performance, but effectively a supply destruction.

Price pressures in 2021 were mainly driven by constraints on the supply of

key food items along with rising energy prices. Food inflation was affected
by a confluence of factors that constrained domestic food supply. The
African Swine Fever (ASF) outbreak which began to sweep across Asia in
2018 significantly reduced domestic hog production even well into 2021.
The impact of the ASF exacerbated existing regulatory, tariff, and
technology constraints in the livestock and feed sector, driving meat
inflation toward double-digit rates in 2021. Note that under current
regulation and tariffs, Filipino consumers pay two to three times for pork
and other meats compared to Thai or Vietnamese consumers. At the same
time, adverse weather conditions damaged crops and hampered fishing
operations.

Meanwhile, energy prices also went up, driven in part by the sharp uptick in
international crude oil prices owing to the recovery in global demand amid
restrained supply. Consequently, domestic fuel pump prices rose

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S/Y 2023-2024
substantially. At the same time, the increase in generation charges resulted
in higher electricity rates.

The rise in inflation was tempered slightly by negative base effects arising
from the significant increase in transport service fares inflation due to
higher tricycle fares with the implementation of social distancing protocols a
year ago, as well as from elevated meat and vegetable inflation in late
2020.

INFLATION RATE (Bongbong Marcos 2023)

President Ferdinand Marcos Jr. is bullish about the economy, with prices of
goods and services “moving in the right direction.”

In his second State of the Nation Address (SONA) on Monday, Marcos said
elevated inflation has been the country's “biggest problem” in the past year
in the wake of supply issues triggered by the Ukraine-Russia war,
worsened by the lingering impact of the COVID-19 pandemic.

Filipinos saw inflation rates surged in the late months of 2022, with the
figure peaking in January at 8.7% - the highest since November 2008.

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Don Domingo B. Fortuno St., Santiago, Bato
S/Y 2023-2024

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S/Y 2023-2024

Inflation also has impact different economic sectors such as the Education
Sector, this includes the Tuition fees in Private colleges, the high price of
the textbook, Students need textbooks to study but their prices keep on
increasing year after year. The publishers blame the paper producers, who
in turn, blame the increasing input costs for the price hike. Inflation has a
direct impact on education budgets and the salary of school employees as
authorities have to make cuts on various expenses. The need for higher
income encourages teachers and other support staff to look for temporary
high-paying alternatives.

Changes in the value of money affects each individual differently. The

concrete effects of inflation on various groups of society are as follows:
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Don Domingo B. Fortuno St., Santiago, Bato
S/Y 2023-2024
1.EFFECT ON REDISTRIBUTION OF INCOME AND WEALTH:

A. Effect on consumers: The effect of inflation on consumers is not

good. .People as consumers suffer heavily on account of the rising prices.
The cost of living does not rise proportionately to income Under such
conditions

consumers are called upon to pay higher prices for article of consumption.
Thus, inflation gives rise to a sense of futility, desperation, and revolt
among the consumers.

B. Effect on wage earners and salaried people: Wage and salary

earners suffer during inflation period because wages and salaries generally
do not rise in the same proportion as the price rises. Therefore, the
purchasing power of wages and salaries diminishes during period of rising
prices and the wages and salaries earners end thus hard-hit.

C. Effect on farmers: During the period of inflation farmers are generally

the gainers. The prices of agricultural commodities go up while the cost
incurred by the farmers do not go up to the same extent. It should,
however, be remembered that small farmers do not gain as much as the
big farmers do from rising prices, because the farmers do not have a
considerable surplus to dispose of in the market.

D. Effect on debtors and creditors: During inflation period, debtors are

generally the gainers while the creditors are the losers. Because the
debtors had borrowed the sum when the purchasing power of money was
high and now the purchasing of money is low due to rising prices when the
loan is returned. In other words, the debtors while repaying their debts
return less purchasing power to the creditors than what they had actually
borrowed. Thus, the creditors are adversely affected during inflation period
and the debtors prove to be the gainers.

E. Effects on entrepreneurs and businessmen: The entrepreneurs,

manufacturers, wholesalers, and retailers gain during period of rising
prices. They gain due to three reasons. First, they are mostly debtors and
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debtors gain when price rise. Secondly, they buy raw materials and other
goods at low and lower prices and sell when prices are generally higher.
Thirdly, wages and other fixed elements in their costs do not rise as much
as the rise in prices. As a result, they earn surplus profit and increase their
productive activities, consequently, offer more employment opportunities to
others.

F. Effects on investor: Generally, there are two types of investors. (i)

Investors in shares and (ii) investors in debentures and fixed types of loans
etc. Former type of investors are gainers and latter are losers during the
inflationary period. Dividends on shares increase with the increase in
prices, consequently the shareholders are favorably affected on the other
hand, income on the debenture etc. remain fixed and the debenture holders
are adversely affected.

G. Effect on the fixed –income group: The people belong to fixed-income

group are badly affected during inflation period, because their incomes,
being fixed, do not bear any relationship with the rising cost of living.
Teachers, clerks, government servants are not able to meet their ends
because off rise in prices. They lead a miserable life.

H. Effectors on investors: Generally, there are two types of investors (i)

Investors in shares.

I. Social and moral effects: During inflation, bribery and black marketing
become rampant. Everybody tries to earn money by whatever means he
can. Further, because of rise in prices all around dissatisfaction is caused
amongst consumers, laborer’s and middle-class people, and as a result
there of, they become struggle minded.

2. OTHER EFFECTS:

Inflation leads to a number of other effects which are discussed as under:

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Don Domingo B. Fortuno St., Santiago, Bato
S/Y 2023-2024
A. Government—Inflation affects the government in various ways. It helps
the government in financing its activities through inflationary finance. As the
money incomes of the people increase, government collects that in the
form of taxes on incomes and commodities. So, the revenues of the
government increase during rising prices. Moreover, the real burden of the

public debt decreases when prices are rising. But the government
expenses also increase with rising production costs of public projects and
enterprises and increase in administrative expenses as prices and wages
rise.

B. Balance of payments—Inflation involves the sacrificing of the

advantages of international specialization and division of labor. It affects
adversely the balance of payments of a country. When prices rise more
rapidly in the home country than in foreign countries, domestic products
become costlier compared to foreign products This tends to increase
imports and reduce exports, thereby making the balance of payments
unfavorable for the country.

C. Exchange Rate. —When prices rise more rapidly in the home country
than in foreign countries, it lowers the exchange rate in relation to foreign
currencies.

D. Collapse of the Monetary System—If hyperinflation persists and the

value of money continues to fall many times in a day, it ultimately leads to
the collapse of the monetary system, as happened in Germany after world
war I.

E. Social—Inflation is socially harmful. By widening the gulf between the

rich and poor, rising prices create discontentment among the masses.
Pressed by the rising cost of living, workers resort to strikes which lead to
loss in production. Lured by profits, people resort to hoarding, black-

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marketing, adult ration, manufacture of substandard commodities,
speculation, etc. Corruption spreads in every walk of life. All this reduces
the efficiency of the economics.

F. Political—Rising prices also encourage agitations and protests by

political parties opposed to the government. And if they gather momentum
and become unhandy, they may bring the downfall of the government.
Many governments have been sacrificed at the alter of inflation.

There Are strategies To Help You Soften The Impact Of Inflation On

Your Finances

MAKE A MONTHLY BUDGET

Once you're crystal clear on how inflation is affecting you, it's time to look at
your entire monthly budget. What is your post-tax income each month, and
how has that changed in comparison to your expenses? If you're spending
significantly more on the same things but are still earning the same
amount, you'll benefit from sitting down and building out a personal finance
budget

GO VEGETARIAN

At risk of sounding like a broken record, a great way to help your budget
and the planet (and your health!) is by adopting a more sustainable diet
and eating at more home-cooked vegetarian meals. Meat and fake meat
products come with an inflated price tag, but versatile vegetarian staples
like tofu, tempeh and canned or dried beans are a simple way to
incorporate cheap, plant-based proteins into your diet

Limit Your Wants

Before you go out and buy something new or expensive, ask yourself if you
need it. Usually, having a bit of self-control when faced with a problem will
solve it entirely. Focus on what’s important to you and stick to those values.

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By limiting our wants and focusing on necessities only, we can help offset
some of the financial burden caused by inflation.

Grow Your Emergency Fund

It might not be a fun expense, but if you want to make sure you’re prepared
for life’s financial unknowns, building an emergency fund should be a top
priority. Save up at least three months of living expenses in case of job loss
or medical emergency. Set up an automatic transfer from your checking
account into a savings account every month. That way, you won’t even
notice that money is missing until it adds up and makes a real difference in
your security and peace of mind.

Cut Unnecessary Expenses

If your income is rising at a slower rate than inflation, you can’t afford to
maintain your current lifestyle. Be brutally honest with yourself and pare
down expenses. It may be painful in the short term, but it will help you
weather tough economic times.

Buy Quality Products that Last

By buying a high-quality product, you won’t have to worry about replacing it

as often, saving you money in general. Shop at recognized stores that offer
warranties and guarantees on their products, so if anything goes wrong,
you can get your money back or exchange it for something new. This
strategy is beneficial for expensive purchases like cars and appliances. The
government policies to manage inflation. Based on the continued
deceleration in inflation and the lower inflation forecasts, the BSP decided
that a pause in increasing rates was appropriate.

The BSP's latest estimates show that average inflation is likely to reach 5.5
percent this year, lower than the 6.0 percent announced previously.

Increasing taxes

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Don Domingo B. Fortuno St., Santiago, Bato
S/Y 2023-2024
While increasing taxes may be politically challenging, Congress can enact
a law to increase taxes on non-essential goods, like luxury cars, alcoholic
drinks, cigarettes including vapes which are not considered basic
commodities.

Cut government spending

While checks and balances are in place, the government must cut
spending, address loopholes in budget allocation, and deal with
procurement issues that led to an average of P1 Trillion (T) unused and
misused/abused annual budget from 2010-2020. Transparency and
accountability must be upheld, especially given the proposed P5.268T
budget for 2023 and the increasing debt at P13.5T as of November
2022.Targeted subsidy and financial support

to farmers and fisher folks must also be prioritized to increase domestic

productivity which will reduce prices and importation of agricultural
products.

RECOMMENDATIONS

Addressing high inflation requires a whole-of-government approach. It

requires fiscal consolidation through budget rationalization and more tax
revenues. While the BSP uses monetary policy to temper inflation with the
least possible job loss, the government must exercise fiscal restraint to
lower

inflationary pressures. First, government deficits and debts must be

lowered. Rationalizing the government budget will not only cut unnecessary
spending but also reduce the budget deficit. PPP may also be helpful in
funding infrastructure projects to avoid incurring more foreign debts.
Moreover, revenue efforts must be increased through tax policy and
administration reforms. Increasing the excise tax on non-essential goods
will serve as both a revenue and health measure, and imposing corporate

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Don Domingo B. Fortuno St., Santiago, Bato
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income tax or digital service tax on non-resident foreign tech giants will
generate more collections from the digital economy. Fiscal consolidation
aimed at taxes and spending that help the rich can help reduce inflation.
There could be trade-offs in terms of jobs to a slower economy but inflation
is already hurting the poor and vulnerable. Thus, keeping targeted subsidy
will help ease their hardships while the government continue to address
high inflation.

VI. Case Study Analysis

Inflation is a general increase of the prices of goods and

services in an economy, it seriously affects our life in different aspect.
An interview was conducted to analyze how inflation affects the
family’s purchasing power. The interview questions includes Mrs. Dolly
Doctolero Coralde works as a Professional Highschool and College
Teacher. She is married with her husband who also runs a small family
business, they have two daughters who are currently a college and
high school student. A nuclear family, both parents work to earn
money to provide their needs and wants.
Mrs. Coralde’s monthly income is P 22, 000.00 (tax already deducted)
and her part-time job income as a college instructor is P 7,000.00
every month. His husband’s small business earns P 12, 000.00
monthly.
MONTHLY INCOME
MRS. CORALDE P 22, 000.00
P 7, 000.00
MR. CORALDE P 12, 000.00
TOTAL INCOME P 41, 000.00

P 41, 000.00 is their budget for one month, to be divided to their

monthly expenses.
MONTHLY EXPENSES AMOUNT
ELECTRIC BILL P 600.00
WATER BILL 600.00
MOBILE EXPENSES 300.00
SCHOOL ALLOWANCE (2 4,800.00 (600.00 each
daughters) weekly)
TUITION FEE (college student 12, 000.00
by quarter)
GAS EXPENSES 900.00
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FOOD AND BEVERAGES 2, 400.00
MEDICINES 200.00
GROCERIES 1, 500.00
TOTAL AMOUNT: P 23, 300.00

Coralde’s Family monthly expenses includes electric bill and water bill.
Mobile expenses that refer to their payment for internet connection

(LOAD). School allowance costs P 600.00 weekly for each of their two
daughters and Tuition fee for the college student costs P 12, 000.00
by quarter. The Gas expenses to cook food costs P 900.00 that lasts
for 2 months.
The food expenses costs P 2, 400.00 monthly, according to Mrs.
Coralde, every Monday to Friday, they spend P 300.00 for food, their
family don’t eat together because of their work and their daughters are
also busy in school. During Saturday and Sunday, is their family day
where they eat together and it costs P 300.00. So, every week, they
spend P 600.00 for food and beverages. Supposedly, there are 4
weeks in 1 month, so P 600.00 is multiplied by 4 (weeks), P 2400.00
in total.
For the medicine expenses, it includes pain relievers (such as Bioflu
mefenamic acid and etc.) costs P 200.00.
They also spent P 1 500.00 for the groceries, the table below shows
the goods/products that they purchased for P 1 500.00.
GOODS AMOUNT

1 tray of egg P 114.00

12 pcs. Toothpaste 150.00
3 bar Body soap 60.00
Shampoo 65 .00
Dishwashing paste 38.00
Detergent powder 84.00
Canned goods 110.00
Coffee powder 45.00
Sugar 45.00
Condiments 130.00
Fish 100.00
Meat (PORK or CHICKEN) 135.00
Vegetables 65.00
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Rice (5 kilo) 240.00
5 Noodles 75.00
Cooking oil 50.00

TOTAL AMOUNT P 1, 506.00

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Mrs. Coralde spent P 1 500.00 for their 1-month grocery supplies.

According to her, because of the increasing price of goods, they limit their
foods by eating meat twice or once a week.
The rest of their income which costs P 17, 700.00 is for the house facilities,
accidental expenses, other luxuries, school fees and fair.
Back then, Mrs. Coralde can buy more than 20 goods but now, she can
only buy 16 goods.
The inflation truly affects how Mrs. Coralde budget their money, she also
shared that they don’t have money for savings because their children’s
education is their investment. As a, parents, one of the most important
goals is saving for a child’s education. With rising tuition costs, now more
than ever, parents are looking for ways to save and invest in their child’s
future education.
“Tumataas ang bilihin pero hindi tumataas ang sweldo” Mrs. Coralde
stated.
The price of goods and services increases but salary stays the same. The
inflation affects how they budget their food, they can only eat meat twice a
week to save money.
As believed by Mrs. Coralde, inflation is made by luxury. a luxury good is a
good for which demand increases more than proportionally as income
rises. Luxury goods are said to have high income elasticity of demand. In
other words, as people become wealthier, they will buy more and more of
the luxury good.
But for Mrs. Coralde, they spend according to how much they have. Bags
and shoes are her only luxury.

VII. CONCLUSION AND RECOMMENDATION

Due to the increasing prices of goods and services, consumers are
limiting their demand. Prioritizing the family needs is important, especially
the education of the children. Inflation directly affected to consumer
equilibrium. At the time of inflation increases the prices of commodities
increases which reduce the purchasing power of the consumers, and
consumers have to reduce the consumption. Inflation can affect the price of
everything, from food and housing to transportation and clothing. And rising
prices can drastically change your standard of living. Even moderate levels
of inflation will reduce the value of your money over time.

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Here are the recommendations to budget the family income to overcome inflation:

1.Create a budget. First off, you’ll need to create a household budget. Your
family budget can run from week to week or plan for the month ahead, so decide
which works best for you. Your family budget doesn’t need to be overly
complicated - just start off by tallying up all your monthly income against all of
your outgoings.
2. Be honest with your spending When costing up your outgoings, there is no
sense in being unrealistic when assessing your current spending. Rather than
guessing how much you spend, try collecting all your receipts and go through
your bank statements to work out how much you’re spending.
3. Share finances with your partner Getting a joint bank account is a great
way to budget your money, as you no longer have to worry about which of you is
covering certain costs. With all of your money in the same account, it’s much
easier to keep track of where your money is being spent, which in turn makes
managing your money simpler.
4. Create savings goals for the future After you create a household budget
and figured out what your financial situation is, it’s a really good idea to set some
savings goals. Having a set amount you want to save each month will not only
stop you from spending on stuff you don’t need, but it will also make you think
more carefully about any existing expenses you might have.

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