Are you frustrated by what seems like an endless rise in prices & High Inflation? If so, you’re not alone. According to Moody’s Analytics, the typical American household spent $372 more in February 2023 than the previous year on the same goods and services. Even though the inflation rate is starting to subside a bit, prices are still 6% higher than a year ago.
That can make it tougher than ever for everyone to stick to a budget, even those considered high-income consumers. According to one study, nearly half of these wealthier households (45%) said they were living paycheck to paycheck. It seems that just about everyone is feeling the pain at the cash register.
6 Tips For Fighting Back Against High Inflation
Many families are making financial and lifestyle adjustments to survive these challenging times. They realize that for things to change financially, they need to make some adjustments. Here are six things you can do to make some changes that will help your checkbook and give you a little more peace of mind.
- Never go shopping without a list (or when you’re hungry).
If you’re headed to the grocery store or the mall, make sure you prepare and carry a shopping list. It will help keep you from making impulse purchases that can add to your bill.Do the same thing for online shopping. When you want to buy something, put it in your cart and come back 24 hours later and see if you still want it, and that you really need it. Separating needs and wants will save you a lot of money.
- Cancel or pause subscriptions you’re not using.
The average consumer estimates they spend about $100 per month on subscriptions, but in reality, it’s over twice that much. Canceling magazine or streaming video subscriptions you’re not using can really add up over the course of a year. If in doubt about whether to cancel, see if you can pause it for 30-60 days and see if you miss it. If you don’t – cancel.
- Spend less on utilities.
Energy costs have been among those hardest hit by inflation. However, you can cut your energy costs by doing some small things, like switching to more energy-efficient lightbulbs or sealing up drafty doors and windows. In addition, adjusting your thermostat by 7 to 10 degrees for eight hours a day can save you as much as 10% per year on heating and cooling costs, according to Energy.gov.
- Lower your housing costs.
Whether you own or rent, one of your biggest monthly expenses, if not the biggest, is housing. You can lower that by downsizing, renting out an extra room, or getting a roommate. It can free up a significant amount of cash. It will save you money not only on your monthly mortgage or rent payment, but on other things, too, like utilities and maintenance.
- Move your cash to a high-yield savings account.
One of the few upsides to inflation is that savings accounts are earning higher interest rates. Many online banks now offer rates as high as 4% or more. Online banks are FDIC-insured up to $250,000 per account holder, so don’t worry needlessly that your money won’t be safe. If you’re worried, link your savings account to your checking account at a big-name bank so you’ll be able to transfer money between accounts quickly.
- Increase your income.
Sometimes you have to try and out-earn your financial challenges, like surviving inflation. Start by asking your boss for a raise (unless you’re the boss). Some employers are being less stingy when it comes to giving good employees more money because of inflation.If that doesn’t work for you or isn’t realistic, consider starting a side hustle to make some extra money. Working a few extra hours in the evening or on the weekend can make a big difference when it’s time to pay the bills. You don’t have to do it forever, just while inflation and prices remain high. But you may find that you really like it, or it could turn into a full-time business for you.Follow these suggestions for 90 days, and you’ll see what a nice difference they make in your spending and budget. It may inspire you to make even more changes that result in long-term financial gain.If you loved this article, you can read more – Best Gold IRA Service & Best for Long-Term Investors.