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.
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.