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Transcript:
Welcome to Money Tip Tuesday from the Making Money Personal podcast.
If you’ve browsed news articles lately, you are likely to have come across stories covering the topic of inflation.
Inflation is a common occurrence in the current financial system and there is a measure of it that happens every year.
The concern arises when that rate increases by a substantial amount. One of the biggest factors of an inflationary period is an increase in prices.
You may notice an increase in prices for everything across the large variety of goods and services.
If you’re seeing this happen in your neighborhood, there’s no need to panic. But you should make some financial adjustments to offset the rise in prices.
Here are a few things you can evaluate to minimize the impact inflation may have on your cash flow situation.
- Budget for your needs first.
It’s time to re-assess your budget and focus on what your NEEDs are as opposed to wants. Be really honest with yourself about what a need is and what a want is. Things like housing, food, electricity, and water are all your needs and you should budget for all those first. Once those items are covered then add in more as you allocate your funds down the list. What’s important here is that you focus on making sure all your needs are covered so you don’t spend unnecessary funds on things that are only wants.
- Find things to cut out of your bills.
It’s wise to do this on a regular basis anyway. When you’re going through your budget, look for other line items that you no longer use, and remove them. Things like unused subscriptions or expensive top tier package options. Remove those so you can put that money to other necessities. You can even call your cable, cell phone provider, and insurance company and see if you can negotiate a lower price. They may give you a discount to keep your service.
- Make some lifestyle changes.
If you’re spending too much money in certain areas of your life like excursions, fancy trips, or expensive foods, you may want to make some lifestyle adjustments. Find ways to either do them for a lower cost or replace it for another, less costly, experience. You might discover a great new hobby or interest that you enjoy as much for way less.
- Buy items in bulk to avoid paying the price increases as they go up
Stocking up on bulk items can save you long-term costs. If you anticipate a price increase on things you already purchase, you can consider going to a big box store like Costco or BJ’s and buying those items in bulk to store for later. Just make sure you have the space to store it all and that those items have a long shelf life.
- Use coupons or saving apps or browser extensions
If you’re not doing this already, now’s a great time to start. Use browser extensions like Honey which will automatically search to find the lowest price for the items you have in your cart. If you’re interested in using coupons, other services can run promo codes through your online checkout and let you know if there are any deals out there you’re missing.
- Cash in rewards points on credit cards or other rewards programs
If you’ve been neglecting your credit card cash back program you may find a large collection of points you can redeem for cash back or other rewards. It also may be a great time to sign up for retailer rewards programs that will give you rewards, discounts and cash back towards your grocery bill. Any way to save money on necessities should be on the top of your list
- Don’t panic! Especially about your retirement savings
Inflation might make things seem like the financial system is fluctuating, and it may be, but don’t panic. If you’ve been saving for retirement a long time and you’re getting close to living off those funds, the amount may not seem to go as far as you thought it would. This is a good opportunity to chat with a financial professional about whether you should make portfolio adjustments. They have the experience and the knowledge to confidently advise you on the best way to manage your retirement account. If you’re looking for a financial planner, Triangle Financial Group Advisors will meet with you to evaluate your positions and advise you on any changes you should make
If you’re growing concerned with the rising prices today due to inflation, don’t get discouraged. There are things you can do to minimize its effect on your life. Take charge of your money and make the difficult but necessary decisions that can keep you moving on the right track towards financial success.
If there are any other tips or topics you’d like us to cover, let us know at tcupodcast@trianglecu.org and don't forget to like and follow our Making Money Personal FB page and look for our sponsor, Triangle Credit Union on Instagram and LinkedIn to share your thoughts.
Thanks for listening to today’s Money Tip Tuesday and be sure to check out our other tips and episodes on the Making Money Personal podcast.
Have a great day!
