How do Jordanians save money in the face of high prices eating into their income?

sunrise from above Jordanians, like all other people of the world, suffer from economic inflation and high prices that have affected all aspects of life.

This comes with questions raised by citizens about the ways in which they can save under these circumstances and develop the money they have, even if it is little.

The Corona pandemic that hit the world at the end of 2019, and the measures and closures that followed, affected the world economy and growth rates, which soon took a breather until it entered the vortex of the Russian war against Ukraine, and the alarming rise in energy, food and freight prices.

Add to that the climate change affecting the world as a whole, which has caused an impact on basic crops and crops such as wheat, barley, maize and oils, in addition to water poverty.

Between a rock and a hard place, the citizen has remained confused about saving despite the fact that his income is much more than his daily and monthly expenses, and for that an economist offers ways to save and develop money.

“Solution”

Professor of Economics at Yarmouk University, dr. Sameh Al-Ajlouni, said that the basic principle in life is of course the economy, even if it is not possible to have inflation, price increases and a global crisis that food, oil and energy, which is what we are experiencing now , and Jordan is not immune to the world.

Al-Ajlouni added in his interview with Al-Ghad that “since our resources seem to be very limited, it is better for the citizen to think of ways to save and develop money or savings.”

He continued: “Part of these methods must start with the education system; Because this is the basis, and its importance lies in influencing the awareness of children and young people, but the issue of inserting rational economic concepts does not bear fruit overnight.”

On consumer behavior in the light of the prevailing conditions, he stressed the need to rethink our “fancy or luxury” consumer patterns, which have crossed the limits, which is evident when citizens increase consumption of a particular commodity after its prices rise have, as the case may be. with fuel and electricity.

Al-Ajlouni pointed out that banks and financial institutions play a role in increasing consumption, as these agencies open their arms for citizens to borrow from them on the simplest terms, to meet their needs and satisfy their desires , especially to buy a car, a house, or for the purposes of travel, tourism and entertainment.

And he indicated that this could indicate that citizens’ spending is not properly prioritized, which is very important to control expenditure, so that money is spent on the most important purposes, then the most important, then the least.

He explained that there are expenses that can be dispensed with; Such as cigarettes, especially because they are harmful, as well as excessive purchase of ready-made meals, and spending on the telecommunications sector that is necessary and unnecessary and exceeds the individual’s need, and therefore the citizen must change his consumption pattern in all these aspects that increase spending.

The professor of economics referred to the issue of responding to the temptations of advertising, which means that the individual wants to replace and renew his mobile phone, computer, furniture and clothes, even if he has enough of them to satisfy him and meet his needs provided, while the citizen should not react too much to these desires.

The economist said: “Since the price of petrol is high, the individual can address saving methods; Like going on foot when you buy goods from nearby places, and when you go to pray in the mosque, for example, and the same applies, for example, to air conditioning that should not be left on 24 hours a day.”

He added: “Although the transport network in Jordan does not encourage the citizen to leave his car easily, there is a health benefit for the person when he walks short distances.”

He emphasized the importance of sticking to the culture of consumption as much as is necessary, and learning the culture of saving and not being excessive in any way.

The economist pointed to the so-called “participatory economy”; Like some neighbors or friends who live in the same area, and take turns using their cars to go to work and so on.

Al-Ajlouni continued: Any citizen who owns an empty piece of land can cultivate it and improve his self-reliance, or if possible grow basic food on the roof of his house to achieve some kind of self-sufficiency.

He called for the need to legalize the purchase of ready-made meals, and to prepare what can be prepared from fast foods at home, as there is no doubt that this will save a large amount of money.

Regarding savings, Al-Ajlouni said that reducing expenses and rationalizing spending at all levels will undoubtedly lead to savings.

Regarding the development of funds in light of the current circumstances, the professor of economics at Yarmouk University explained that investment must contribute to the actual production process in its various forms; From agricultural, industrial and service productions. As for the purchase of stocks and bonds, they are instruments of ownership and financial investment and are not real.

He continued: “A person must be patient and keep saving until he earns a certain amount by which he can perform any productive activity in accordance with the comparative advantage he has and the field of his creativity and what his relatives can do as well, so that he shares money with them in this project to sell a commodity or provide a service.

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