Inflation is a word that gets thrown around a lot. It evokes fear amongst the public, and for a good reason. Inflation is the rise in the cost of goods and services from year to year. Some goods and services experience slow growth, while others experience exponential growth. Those with steady growth include housing and food. Every day I hear someone complain about the rise in food costs and how the mortgage interest rates have risen sky-high. It is a cause for concern, but can we beat it? Yes, and here are 7 unique ways to combat inflation:
1. Get On Budget
The rise in costs of goods and services means more money you need to spend on average daily activities. That alone is worth looking over your budget. Look at your budget and take stock of how much you are spending in comparison to a few months or a few years ago. See which categories you are over budget in and make readjustments accordingly.
2. Avoid Lifestyle Creep
Now that your budget has accounted for inflation, you have to keep a tight grip on it. A raise or windfall does not mean adjusting your budget to allow for more frivolous spending. Unless you’re getting a significant sum of money, it’s only likely replacing the value inflation has taken away. Instead of giving in to lifestyle creep, act like you never saw the money. Invest more of it or put it away in a high-yield savings account for a rainy day.
3. Invest
Research suggests that when inflation rises, you should not hoard cash. Instead, invest it. Investing your money into the stock market can help increase its value over the long haul rather than sit and lose value under your mattress.
4. Buy Vs Rent
This may seem controversial, but It does not have to be. Do not think I believe buying a home with a 7% interest rate is your best bet. Right now, rent is probably best, but not for everything. I do not think you should be renting appliances, home furnishings, or even cars. Over time, you will likely pay two to three times the amount that the product is worth. Instead of paying in excess, pay in full for less.
5. Buy Durable products
When it comes to shopping for big or small ticket items, do not go cheap. Cheap is ok in a crunch, but if you want something to keep for a while, that may not be your best option. Instead, look for durable products, and read reviews before you shop. A product with a warranty is also a good idea. That will keep replacement costs down over time.
6. Use Coupons
Learn how to save using coupons. You can do this by joining couponing groups on your favorite social media platform. They can help you identify deals and how to secure them. If you’re not interested in joining a group, just sign up for store and restaurant loyalty programs. By doing so, you can get access to digital coupons and savings. Just clip them to your card and redeem them at checkout. Just doing this can save you a few bucks at the store.
7. Plan Ahead
The cost of entertainment and travel is also going up. If you are like me, these things are a part of what makes you happy and fulfilled. Instead of giving it up, plan ahead. Set travel dates in advance, plug and track flights with Google Flights Explore and stay on top of hotel deals.
These are just 7 unique ways to combat inflation, follow the posted video for more.
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