How to Save Money During Periods of Inflation
4 Important Tips for Dealing with Rising Costs
Inflation is putting financial pressure on households all over the country. Whether you are pumping gas or buying groceries, everything costs more. Consumers are paying 8% more for goods and services than they were in March. This is the highest rate of inflation we have experienced in the last 40 years.
During an inflationary period, spending power decreases. Things cost more and money becomes less valuable. Personal finance is different for everyone and the effects of inflation vary depending on variables such as whether you are single or a large family or if you drive a far distance daily. For most, the full weight of inflation has become a significant hurdle to overcome. However, there are steps that can be taken that can help you navigate these difficult financial times.
The best way to manage your finances is to know what you are spending your money on, consider ways to increase your income, and have a long-term investment plan. Let’s look at 4 important tips for dealing with the influence that inflation may be having on your life.
4 Tips for Saving Money in an Inflationary Period:
- Invest for the long term. Start to build an emergency fund in case you find yourself in an emergency situation. Start setting money aside now. The more money set aside now, the more likely you will be able to make smart spending decisions without going into debt. Get the most out of this money through a high-yield interest savings account. Higher interest rates on bank accounts can be used to fight the effects of inflation on your cash. Bank account interest rates usually don’t beat the rate of inflation, but these accounts can help hedge against inflation much better than keeping cash at home or in a low-rate account. Investing your money is one way to outpace inflation. A strong investment plan should be in place to deal with the ups and downs that inflation brings about. For long-term savings options, treasury bonds are a smart option because they are safe, government-backed bonds designed to match or beat the rate of inflation.
- Reduce your expenses. Now is the time to examine your bills to determine if any expenses can be eliminated or reduced. Common bills that could be cut or reduced include recurring subscriptions, phone, internet, car insurance, and home insurance. Search for lower-cost plans and seek to unlock savings. Another way to cut unnecessary expenses is to consolidate your credit card debt onto a balance transfer credit card. The best transfer credit cards offer at least a year of 0 percent intro APR on balance transfers. This can give you time to pay down your debt without having to pay interest on the balance. Plus, in addition to saving money during inflation, it helps you pay off old debts and improve your credit score as well.
Automated Clearing House (ACH) payments are electronic payments that pull funds directly from your checking account. The money automatically moves from your bank account, avoiding the need to write a check or initiate a credit card transaction. ACH is the largest payment network in the United States. There are many advantages to using ACH debit. There is no need to remember to make payments using this method. There is also no need to write checks or pay postage. This also eliminates the frustration of waiting for the postal service to deliver payments on time or losing the mail altogether. This method can help you save time as well as make sure your payments are made on time, avoiding late fees.
- Cut costs at the grocery store. Money can be saved with efficiency at the grocery store. American households throw away an average of $1,500 a year in wasted food. Meal planning is one way to shop with less waste and save money. Plan to make meals when you are going to be home to eat. Find recipes that use similar ingredients. Another way to save money when grocery shopping is to take advantage of coupons, cashback credit cards, and cashback portals. Shop for cost-effective foods. Meat prices are soaring, so eating more meatless meals is one way to cut back on grocery bills. Swapping name-brand products for generic versions can also help you save money. Comparison shopping of items by weight to find the best option can help aid in savings as well.
- Find a way to increase your income. In today’s job market, employees are better positioned to shop their services around or negotiate for better pay. This may also be a good time to explore ways to make extra money outside of your job. There are ways to sell things you are not using on sites such as eBay, Facebook Marketplace, or Craigslist. There are also a variety of jobs that can be done with the flexibility to contribute to your income, such as pet sitting, tutoring, food delivery, or rideshare services. Earning extra cash on top of your regular salary can provide some financial peace of mind during inflationary periods.
If your budget is under pressure from the current inflation rates, using one of these strategies to cut costs may help. Jarrettsville Federal Community Bank is available to support individuals and businesses with their savings and banking needs.
Jarrettsville Federal Savings and Loan put down roots in the community in 1869 as a strong, stable financial institution. Over the years, we have developed relationships that span generations. Our 153-year tradition of community banking helped us to grow.
Today, we continue to thrive, with checking, savings, and loan products that meet our customer’s needs, technology that brings us into the future, and community service that gives back to our customers. We are involved where our customers live and work, supporting local community organizations as much as we are able, including schools, libraries, emergency services, and many local charities.
To learn more about our services or how we can support you during this inflationary period, contact us at 410 -692- 5151 or visit our website at https://www.jarrettsvillefederal.com/.