Rummage, Strategize and Cutbacks: A Middle and Middle Class Survival Guide

Consumption habits are changing day by day even for families who are not used to pocket care; Ranging from the closure of canteens to the reduction of prepayment costs, which no longer goes into this sector.

Beyond the data Inflation Argentine juggling takes place every month. Even those families who have been taking care of their pockets have had to change their eating habits dramatically lately. The lower strata, of course, suffer the most: those who struggle for a livelihood suffer the most from the growth of products and services. But For the sector of the population located in the middle of the pyramid, the situation began to deteriorate. And adjust already came The upper segment of the middle class.

According to a June 2022 report on social sentiment prepared by Moiguer Strategy Company CEO Fernando Moiger, 4 out of 10 Argentines say they have not consumed plenty, such as going out, buying clothes or electronics in the past month. ᲣAres: Half say they failed to pay or were late in paying for services / bills (High level: 35%, middle class: 43%, lower class: 56%).

In addition, in a sample conducted in May, 7 out of 10 respondents said they had had a significant reduction in spending in the last month. 68% of them stopped buying products for the home, 42% stopped buying meat or soft drinks. 37% decided not to go out to eat anymore, 15% left the gym or club, 10% were prevented from paying the expected tax, 7% canceled the prepayment And 3% transferred children to public school, among other amendments.

Say goodbye to the old ways

“I used to make monthly purchases in the supermarket, but now I buy them during the day or week. I pay special attention to the expiration of electricity, gas and water, so as not to pay extra bills, I reduced my cell phone plans and removed extra expenses for outings such as movies or bars. I try too Do not go out for lunch or lunch ” Listed is 55-year-old Ruben Larosa, who lives in Florida and is the secretary of Pilar’s private school.

The pay you get will pay off quickly, So since last year – all the more so since the government banned the purchase of travel abroad in installments – the consumption regime has changed. “When these payments were canceled, I made adjustments, I was sacrificing something for someone else,” he said.

Ruben adjusts his monthly expenses to maintain the opportunity to travel abroad, which is his greatest pleasure.
Ruben adjusts his monthly expenses to maintain the opportunity to travel abroad, which is his greatest pleasure.

Moiger says the lower socio-economic levels suffer at the expense of most aspects of their lives with “less self-confidence” and confirms that their goals are “down to the most basic and primary”. At the same time, according to his analysis, the higher segments “maintain some confidence in themselves and the ability to move forward”, but undergo adjustments to maintain a lifestyle.

Josephine is A specialist in wine marketing and commercialization, has his own consulting and works in various wineries. He lives in Recoleta with his wife and two children, aged 11 and 13, who attend private schools in this part of the country. He had never considered an alternative to replacing them in less purchasing establishments, but he decided to stop at the dining room: She has been taking this service for several months and prepares food for them every night. Because of the new dynamics they have introduced, he spends more hours in the kitchen than he was accustomed to. “We eat out and have a picnic at the club on the weekends,” said the businessman.

They keep the club fee but make small changes. “We are building a pool “Go to hockey or rugby before everyone goes by themselves,” he said. Expenditures on gasoline, for some time without control over these households, are now being closely monitored.

Fuel increases affect middle-class households looking for adjustment strategies in all areas
Fuel increases affect middle-class households looking for adjustment strategies in all areas

According to Guillermo Oliveto, Founder and CEO of Consultora W, in these cases the strategies are organized around the following: Try to lose as little quality of life and consumption as possible. These families are looking for installments (especially under Now plans), targeting local deals, exploring alternative channels of purchase, and taking advantage of app discounts.

“Those who have money and a large family buy large packages and supplies, and those who do not have so much but want to continue the same brand, buy smaller or more affordable packages such as refills or refills. He describes. Another phenomenon is the purchase of loose products or by weight, in addition to exploring new brands. “We are not talking about second brands, but about unknown first brands or without marketing,” he said.

There is no point in which prices have not risen and wages have not followed this trend. According to the Idesa Research Center, the Ripte – which is the average payout subject to contributions to Argentina’s integrated social security system – measured in blue dollars, fell 62% between April 2018 and March 2022 (it increased from $ 1601 to $ 93,601.09. Up to dollars).

“I used to go to dinner with my mother and nephews almost every weekend, and now only once a month. also I used to drink branded wines that are now out of my reach And every year I change my cell phone, and now I have the same four. Eventually, I stopped buying plain jeans to sell for $ 3,000 of any other brand. I save the most in clothes “ Says Hector Guillermo Yayemi, a 38-year-old systems analyst who works at a pharmacy in Salta Capital.

Discounts, quotes and taxes on the radar of consumers looking at their pockets against rising prices
Discounts, quotes and taxes on the radar of consumers looking at their pockets against rising prices

Search and tips on networks

According to the latest Consumer Price Index (CPI) prepared by Indec as of May, clothing and footwear, restaurants and hotels, and leisure and culture are the three divisions that have risen by 5.8% over the general inflation rate, 5.7. % And 5.2%, respectively. And the clothes are still standing on the podium that has grown the most as it has for more than a year, which explains the success of Avelaneda Avenue in the Flores district of Buenos Aires. Though it is not new that offers there are cheap and retail purchases are available on Saturdays, lately it has been experiencing a boom with more influx of consumers.

However, newcomers have a hard time finding the way that prompted Jen Zuster, a 37-year-old ophthalmologist living in Villa Devoto, to create a series of videos listing places to find office clothes, a jacket or children’s clothing. Since March, it has added 200,000 subscribers to its Instagram account for its content and already has over 340,000.

He is an ophthalmologist and shares tours in his networks to wear well at a low price
He is an ophthalmologist and shares tours in his networks to wear well at a low price

“I discovered Avenida Avelanda eight years ago through a friend who came to Mar del Plata to buy goods for her shop and I often went there because the prices were spectacular. However, then it was still possible to go abroad, so no one gave so much money, it was not a boom, “he said.

As she recounts, at first her report was about motherhood, but then she decided to take a look at various tips, including how to dress well at a low price. He goes to Aveland twice a month to tour, which he then uploads to his networks.

“As a professional, it is impossible to dress well with trade brands, because everything is too expensive or salaries are too old. Exaggerated. I have two children aged 5 and 7 and they are raised in Flores. I could see how the brands in the closet were changing. I finally managed to travel in 2019 and there are still clothes on the outside, but I gave away most of them because they grew up and no longer have to. “Now they have big things to do, but somewhere you have to prioritize.”

The protagonists

Beyond the strategies, economic analyst Damian Di Pace says it is necessary to highlight the characters of the decline. “The government is worried about salaries, which are 9 million people, but we are 47 million in total and the rest depends on income, which is not constant. “The middle class, which consists mainly of the self-employed, monotributors, traders and professionals, has been in the ‘double nelson’ since 2018: in the face of inflation, they lose more purchasing power because they have no parity and the state gets more and more of its cake,” he said. , That an employee who earns $ 280,792 does not pay income, while a self-employed person pays $ 64,141 (MPs have a bill with a half-sanction that increases the amount to $ 94,711 and the Senate is expected to approve it later this month).

“This person has no other choice but to adapt like a monotributista, who is fired if he demands 70% of his salary. “The government says the state is there, but it is only for the protected and the absent, for the self-employed and for the monotributors who are not united,” he said.

Finally, he says that the problem is the demand and income of the population, which has no other choice but to adjust from 2018: And the current management strengthens it. “

Source: La Nacion

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