Three Ways to Save Money as You Deal with Inflation
According to TradingEconomics.com, the annual inflation rate in the United States rose to 7.9% in February 2022. Depending on where you live, gas prices skyrocketed by nearly 40%. A harsh reality to accept only two years after the COVID-19 pandemic.
While, as consumers, there’s nothing we can do to fight inflation, we do have some power over how we spend, save, and invest our money. Sure, your bi-weekly paycheck may not get you exactly what it used to a few years ago, but it can still get you by if you play your cards right.
If you’ve been meaning to rethink your spending and cut back on some non-essentials, this is your wake-up call to get it done. Below are three ways to save money as you deal with inflation.
Do your research
Whether you’re buying your first house or shopping for your weekly grocery list, it’s never been more important to do your research. Compare prices and don’t feel committed to purchasing the first thing you see only because it’s what’s available – this goes for big and small purchases alike.
While you might have less flexibility with bigger purchases, like a home or car, deals on everyday essentials can be easily spotted on newspaper ads and online. All spending and savings add up quickly, so don’t overlook the simple method of doing your research before you buy.
Cut back on subscriptions
Some of the most frequently overlooked transactions are subscriptions that auto-renew every month. These subscriptions, including streaming services, membership shopping sites, and meal-kit providers, are automatically charged to your card on file and won’t stop until you go through a rigorous journey to cancel.
While some subscriptions may bring you value and enjoyment, others can often go unused and continue to slowly drain your bank account. If you’re looking to cut back and save your money while you deal with the rising inflation rates, consider looking through your list of active subscriptions and canceling a few. Trust me, you won’t even know they’re gone, but your bank account will.
When it comes to spending and saving money, it all comes down to priorities. While the accelerated inflation rate is unfortunate, especially for those households that were already on a tight budget, prioritizing should help funds go farther in this uncertain economy. If taking an annual family vacation is a non-negotiable for you, consider what other areas of your life you can cut back on.
Maybe family dates become at-home activities instead of a trip to the movie theatre. The possibilities are endless, and it’s ultimately up to you and your unique circumstances to ensure you and your family adjust to rising costs due to increasing inflation rates.