Can You Prepare for Inflation?
March 14, 2022
Can you prepare for inflation? Tips for Combatting Inflation
According to Forbes, prices are going up at the fastest rate since the early 1980s. Supply chain disruptions and high demand for goods have been factors in elevated inflation. With 7.5% inflation, economists estimate the average American family is shelling out more than $275 each month.
So, what can you, the consumer, do to best survive this time of inflation? Here are some tips to help you deal with rising costs:
Budget
Make a budget and focus especially on the expenses that might be directly affected in the future, such as transportation, food, utilities and clothing. Some expenses are fixed, such as rent, mortgage and car loan payments. Other expenses are variable, meaning they can fluctuate from month to month. In a time of inflation, the variable expenses are the ones to keep a close eye on. How can you cut costs on variable expenses?
- Keep track of spending by using a check register or closely monitoring spending through online banking apps like tvfcuONLINE.
- Set up automatic bill pay to ensure bills are paid timely to avoid paying late fees.
- Determine if it is cheaper to pay the bill online or to mail the bill. Some companies have convenience fees for paying online. So, while stamps are $0.58, it might be cheaper to drop it in the mail, as opposed to spending $3 for a service fee.
Saving on FOOD
- Create a week’s menu and shopping list.
- Plan for leftovers or reducing waste, for example, if you buy buns for hamburgers, use the leftover buns for sloppy joes that week as well.
- Buy in bulk for non-perishables if you use large quantities.
- Shop at discount stores and buy generic brands.
- Cut back on eating out and take your lunch to work!
- Order water when eating out and save on those expensive drinks.
- Use the Shop Local. Save Local. feature of TVFCU Perks Checking Account app to save on dinner from an array of restaurants.
Saving on CLOTHING
- Look for sales.
- Shop at consignment and thrift shops, especially for growing children’s clothes.
- Sell old clothing at garage sales or consignment shops.
- Learn to make simple clothing repairs.
- Welcome hand-me-downs.
Saving on TRANSPORTATION
- Use public transportation if possible.
- Drive vehicles that get good gas mileage.
- Carpool if possible.
- Plan to make limited trips instead of making several trips to run errands.
Saving on MISCELLANEOUS
- Make gifts instead of buying expensive ones.
- Buy greeting cards at discount stores to save.
- Explore free entertainment venues such as, parks, playgrounds, hiking trails.
- Take advantage of savings by using the TVFCU Perks Checking Account app to save on a range of programs from oil changes to theme park admissions.
There are many tips and tricks to spending less. Most importantly, know where your money is going instead of wondering where it went!
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Make use of our convenient Financial Calculators to establish a budget and savings plan.