6 Ways To Improve Your Financial Outlook, Despite High Costs
6 Ways To Improve Your Financial Outlook, Despite High Costs
G. Brian Davis Thu, August 1, 2024 GOBankingRates
Some financial experts refer to inflation as the “silent tax.” You don’t see it come out of your paycheck or savings, but it drains their value nonetheless.
Inflation also impacts everyone across the financial spectrum. The rich, poor, and everyone in between notices the effects of inflation.
So in the wake of high inflation over the last few years, how can you improve your financial outlook no matter where you fall on the socioeconomic spectrum?
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1. House Hack
Housing makes up the greatest expense for nearly everyone on the planet. It therefore offers the single greatest opportunity for saving money — especially if you can knock it out entirely by house hacking.
“House hacking involves buying a multi-unit property with up to four units, using traditional mortgage financing,” explained Lane Forehetz, founder of Fast Lane Real Estate. “An FHA loan, which requires only 3.5% down, can make this affordable, often needing less than $10,000 out of pocket.”
“By living in one of the units and renting out the others, you can offset your mortgage or rent payment, significantly increasing your monthly savings,” Forehetz said. You can use the future rents from the other units to help you qualify for the mortgage.
Not ready or interested in buying a new home? Seamus Nally, CEO of TurboTenant, recommended finding ways to house hack your current home.
“For example, turning a room or section of your home into an Airbnb lets you get started without the financial undertaking of traditional real estate investing. With a consistently profitable stream of passive income like that, the money earned can be used to move you upwards financially, helping you do things like pay off your loans, building your savings, and kicking off your investment journey.”
2. Meal Plan To Reduce Grocery Spending
Grocery costs have risen a staggering 25.8% since the last presidential election. That’s pinched most Americans, whose paychecks have not kept pace.
“I plan meals ahead for the week and only buy the groceries that I need for those meals,” said Annie Cole, money coach and founder at Money Essentials for Women. “This has helped me cut hundreds off my monthly grocery bill versus walking through the store without a plan.”
“I buy a lot of affordable staples (rice, potatoes, vegetables) and plan meals around them. When I do buy more expensive items like meat, I’ll use portions of it across multiple meals,” she added.
3. Research Food Assistance
Cole continued to explain that more people qualify for various types of grocery assistance than they realize. “Low-income individuals may qualify to receive a monthly meal stipend from the Supplemental Nutrition Assistance Program (SNAP).”
To Read More: https://www.yahoo.com/finance/news/6-ways-improve-financial-outlook-151055662.html