High Inflation May Be Here To Stay: 5 Money Moves To Keep Financially Ahead

Cynthia Measom    Tue, May 7, 2024

Inflation is still high and not likely to come down anytime soon, as reported by USA Today. But instead of risking falling behind, what if you could turn this economic challenge into an opportunity to keep (or get) financially ahead?

From tapping into the best budgeting tools to smart investment moves and even bringing in extra income, here are ways to not just cope, but potentially thrive in today’s economy.

Establish and Follow a Budget

If you don’t have a clear budget you’re following, now’s a great time to establish one so you can save money even as costs remain high,” said Todd Stearn, founder and CEO of The Money Manual. “If the idea is overwhelming or you just aren’t sure where to start, budgeting apps like Rocket Money, Simplifi and YNAB can help.”

Stearn said you can use these apps to track your progress, including how much you’re saving toward goals. “It’s likely to be more than you expected, which is fantastic motivation to continue,” he said.

Invest In CDs

Stearn recommends shopping around for the best rates. He said the top CDs with terms around one year are offering rates of over 5%. He explained that over 5% is a great rate to lock in if interest rates do drop during the term.

“One year is also a short enough term that you’re unlikely to see rates rise while you’re locked in to the point where you’re losing money with these CDs,” he said. “This is especially true considering that the Federal Reserve just indicated that a rate hike anytime soon is unlikely.”

Transfer Your Credit Card Balance

“As interest rates remain high amid inflation, carrying a credit card balance is costlier than ever thanks to interest rates hovering around 25%,” said Andrea Woroch, a consumer and money-saving expert. “As these fees pile up, debt grows and becomes harder to pay off.”

Woroch suggested saving money by transferring your balance to a zero balance transfer card. She said to look for the longest no-interest period — some offer up to 21 months —  which will give you more time to pay down your balances with no interest.

Get a Side Hustle

Woroch said that increasing your income is the best way to survive inflation and afford a higher cost of living without digging yourself into debt.

“Though getting a raise or better paying job may not be options at the moment, you can find flexible side hustles that allow you to work as much or as little as you can each month, allowing you to boost your cash flow to pay higher bills,” she said. “Plus, many you can do right from home.

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