5 lessons from the current value of the Uganda Shilling

Uganda's inflation rate is at 3.8 per cent as of July 2023. The current rate doesn't matter because, at any rate, it is still a drain on your purchasing power. The only difference is how fast it takes.

The effects of this rate or inflation, in general, are felt in situations where you swear you had a lot of money but your purchases make it seem like you dropped some money on the way. Or in conversations where Shs100,000 is called the new Shs10,000 note. This invincible kryptonite or ghost thief is called inflation.

Here are some lessons from needing more money to buy less stuff

Take risks

There's no way around inflation other than making more money. And generally to get higher returns means you need to take more risk. In most cases, it is our spending that is called into regulation but the other side is also true. Take risks. Drop your reservations about starting a business, improving your financial literacy, and investing, among other money-making ventures.

Build value outside material things

Inflation steals our purchasing power meaning that eventually, we forego certain experiences and things. But value addition, especially outside material things, can soothe the sting. This calls into question quality over quantity, quality over price, uniqueness, focusing on client feedback, providing positive experiences, and harnessing strengths.

5 lessons from the current value of the Uganda Shilling/Pexels Pulse

Share resources

Where you can share resources, share. In most cases, sharing requires little fuss like setting boundaries, contributions, and dealing with pride. Compared to the steadily depleting purchasing power that robs you of joy, sharing does you better by giving you a community or friends.

READ: 6 things to do before you spend your salary

Borrow less

Repaying loans has to be extra hard when you have even fewer purchases than the money promised to get you. This can lead you into a loop of borrowing that can be hard to get out of because over time you need more money than your debt balance.

READ: How to easily repay a debt when you don't want to

Protect your savings

Protect your long-term savings by getting accounts that factor in inflation. According to Money Helper, these savings accounts are index-linked which means they pay interest that tracks inflation. However, they tend to be expensive especially when inflation bites so your returns may not escape inflation. Safe investments are always the best bet.