As inflation has reached its highest rate in several decades, costs have soared across the country. In turn, you’ve likely noticed that prices have risen for necessities such as gasoline and groceries. While it’s uncertain how long heightened levels of inflation will last, it’s best to focus on what you can control. Consider these tips to help endure high periods of inflation:
Create a budget
Knowing where your money is going can help ensure that you’re aware of where your dollars are spent and allow you to make spending decisions accordingly. A budget can help you to focus on priorities, such as housing, food and utilities—and to avoid over-spending on non-essential expenses.
Cut back on spending
Monitoring your spending habits can help ensure that your purchases are justified and worth your hard-earned money. This could mean cutting down on expenses such as dining, coffee or entertainment. Or, it could mean focusing on spending money where you get the most value. For example, you may find that some of your subscriptions or memberships are rarely used, and pausing or canceling these recurring charges could help you cut costs.
Take advantage of rewards programs
Many goods and services you already pay for offer loyalty or membership rewards programs. These programs offer discounts, reward you with free items or give you credit in exchange for your repeated business. Take a look at common places where you spend, such as grocery stores or gas stations, to see if they offer reward programs; otherwise, you may be able to find alternative businesses that do.
Shop for sales
It may take some extra effort, but shopping for sales can be a crafty way to reduce your expenses. This could mean looking for new stores to build into your shopping routine, taking advantage of price matching policies, or finding online or print coupons to save money on everyday purchases, such as groceries.
Invest appropriately
Inflation is a key reason why many choose to invest a proportion of their money instead of keeping it as cash. During times of heightened inflation, it’s important to understand that the right investments can be a great way to come out ahead when the dollar loses its value. Regardless of your situation—it’s best to discuss your financial and investment goals with a financial advisor.
Find free activities
It doesn’t always need to be expensive to find entertainment— or something new to do. When looking for activities, consider free or low-cost alternatives. These could include visiting museums, traveling to parks, attending community events, or even getting together with friends or family. Similarly, you may be able to find free tickets or promotions for events that typically require paid admission.
