Inflation Money Tips: Top Advice for Saving and Spending
Inflation Money Tips: Top Advice for Saving and Spending
GOBankingRates Andrew Lisa Thu, July 21, 2022
The bad news for anyone whose budget is struggling to keep up with rising prices is that inflation is not yet starting to cool. While things appeared to be moving in the right direction in April, May inflation spiked again and got worse in June.
"Inflation is over 9% right now so everything is more expensive," said personal finance expert and "Crawl Before You Ball" author Buffie Purselle. "Food, gas, water — everything you need to live. The reality is that there is very little room in anyone's budget for wants right now."
Purselle is not incorrect, but that doesn't mean there aren't things you can do to take the sting out of these tough economic times while waiting for prices to fall back down to Earth.
Write It Down and Visualize
It's hard to imagine that there's a personal finance expert on Earth who advises against creating a budget and a household spending plan, but they usually say to pick the app or software that works best for you. At least one expert, however, wants you to do it the old-fashioned way. "My biggest piece of advice for individuals looking to gain a strong financial footing in this uncertain economic environment is to write everything down," said Lisa Fischer, chief growth and lending officer of the fintech company Mission Lane.
"Whether it's scribbling in a notebook or typing out an organized list, keeping a detailed record helps you visualize your cash flow and cut down where needed. "Amid the current inflationary period, this will help individuals keep an eye on rising costs and spending within the necessity and luxury expense categories."POLL: Do You Have a Side Gig or Other Hustle?
You Know What's Inflated? Your Recurring Subscriptions
If you take Fischer's advice and write your budget out by hand, you'll probably notice that you're writing some variation of the same thing over and over and over again. "Get rid of those eight or nine different subscriptions," Purselle said. "It's the first thing to go. Get rid of those charges you get every month for apps you don't use and you don't necessarily need. It's not about just not going to get coffee — those small amounts and subscriptions add up. And once you put that money back in your budget, put it in your savings."
Match Your Investments to the Moment
Interest rates are rising, which makes money more expensive to borrow, but it's probably safe to say that your savings account yield has barely ticked up only a little, if at all. The good news is that you can move your money to savings vehicles designed with inflation in mind. "Two such tools are TIPS — Treasury Inflation-Protected Securities — and Series I Savings Bonds," said Maya Nijhawan, co-founder and COO of Finch Credit.
"Both are designed to help protect your money from inflation, but they have their own nuances. Before you hit the buy button, make sure you understand all the terms and conditions."
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