[unsoed.ac.id, Mon, 14/04/25] The recent surge in the value of the dollar has resulted in rising prices for imported goods, especially in conjunction with an increase in import tariffs. This combination can significantly reduce people’s purchasing power. Moreover, it impacts family and personal financial management, often without us realizing it.
Dr. Rio Dhani Laksana, M.Sc, CFP, CSA, CAPM, a lecturer at the Faculty of Economics and Business, UNSOED, offers several strategies for managing finances during periods of rising dollar value and import tariffs:
- Re-evaluate Your Budget with a Priority Scale
The first step is to re-evaluate your family budget by prioritizing basic needs, such as food, education, and health. The increase in the dollar’s value and higher import tax rates can lead to rising prices for imported goods, including essential items like food, electronics, and vehicles. Start by separating fixed expenses from variable expenses, and then allocate more funds to the items most affected by inflation. Utilize financial tools, such as applications or spreadsheets, to regularly monitor your cash flow and avoid unnecessary waste.
- Switch to Local Products and Find Substitutes
To mitigate the impact of rising prices on imported goods, consider switching to local products or more affordable alternatives. For instance, if the prices of imported milk or cosmetics have increased, look for domestic brands that offer comparable quality. This approach not only saves you money but also supports the local economy. If you still need to purchase imported products, take advantage of promotions, discounts, or bulk buying to secure lower prices. Additionally, think about purchasing quality second-hand items that are still in good condition.
- Strengthen Emergency Funds and Investments
Unstable economic conditions necessitate that families maintain adequate emergency funds, ideally equivalent to 6 to 12 months’ worth of regular expenses. To build this fund, set aside a portion of your income and keep it in liquid assets such as savings accounts or money market mutual funds. Additionally, consider diversifying your investments into inflation-resistant assets like gold, real estate, or shares in export companies that benefit from a rising dollar. It is also wise to avoid high-interest consumer debt, such as credit cards or online loans, as these can exacerbate your financial situation.
- Adopt a Frugal and Productive Lifestyle
Encourage all family members to adopt a more frugal lifestyle by reducing dining out, using public transportation, and purchasing only essential items. Explore additional income opportunities, such as freelancing, starting an online business, or monetizing hobbies. With this extra income, families can better prepare for economic fluctuations without sacrificing essential needs.
- Optimise Tax Incentives and Social Assistance
Make the most of government policies that provide tax incentives, social assistance, or energy subsidies to reduce your financial burden. Check if your family qualifies for assistance programs such as Basic Living Training (BLT), electricity subsidies, or tax breaks. If you have a side business, ensure that your financial records are well-organized so you can benefit from potential tax reductions. Additionally, investigate whether there are any government training programs or capital assistance available to help increase your family’s income.
- Financial Communication and Education within the Family
It is crucial to establish open communication about the family’s financial situation and involve all members in planning. Teaching children the importance of saving and managing money wisely is essential. Discuss together how to save money, for example, by turning off lights when they are not in use or opting to shop at traditional markets, which tend to be cheaper. With strong cooperation and understanding, families can maintain financial stability even in the face of global economic uncertainty.
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