What is Inflation?
As the economy fluctuates, the effects of inflation are hard to predict and even harder to ignore. The prices of gas, groceries, and other goods and services rise and fall, affecting the lives of Americans everywhere. In simple terms, inflation is an increase in the cost of goods and services over time. This can cause a decrease in consumers’ purchasing power, making it difficult for them to purchase goods and services.
It is important to be aware of inflation and to take steps to protect yourself from it. Not only can inflation affect the cost of the food you buy, but it can impact the price of rent and the interest rates on homes. Inflation is insidious, and you may feel overwhelmed if you do not know what to do when inflation hits hard. Keep reading to learn more about combating inflation and how to save money when times get tough!
Can I Budget Around Inflation When It Hits Hard?
Budgeting around inflation may be downright impossible. While you cannot budget your way out of the effects of inflation, you can tailor your budget to compensate for the increased prices of goods and services that you are encountering in your day-to-day life.
To combat the effects of inflation, consumers should look for ways to cut back on spending, such as looking for cheaper alternatives, taking advantage of sales and discounts, and budgeting for monthly expenses, such as:
- Rent or Mortgage Payments
- Groceries and Utilities
- Title Loan Payments
Oftentimes, cutting back can be challenging, especially if you have never lived through seasons of financial hardship. You may not know where to look to find sales, how to find cheaper alternatives, or even how to trim your own budget.
Essentially, learning how to save money during periods of inflation is the only way to arm yourself with the right tools to manage your finances.
How to Save Money During Periods of Inflation
Saving money during periods of inflation is possible, but you’ll need to be your own advocate and be willing to learn. Frugality isn’t just a state of mind, it’s a lifestyle, and making the necessary changes can help you save and budget as much as possible.
The first stepping stone to saving money is to learn how to find the best sales. Not only should you be price-conscious and learn how to compare items online, but you need to be on the lookout for sales and bargains. Free newspapers at your local grocery store often come with coupons that can help you plan your next shopping trip. Try to make meals based on what’s on sale and in season! Don’t go after out-of-season fruit, and try to buy canned items if possible so that you don’t waste any food if you forget about it in the fridge. Additionally, buying generic is another way to save money during periods of inflation. While you don’t need to buy everything generic, items like flour, granola bars, and other goods can be substituted when you need to save a little bit of money during your grocery trip.
Going off of this, it is important to carefully consider where you are spending your money. Grocery stores like Pete’s Fresh Market, Whole Foods, and Trader Joe’s are known for being much more expensive than other chains like Kroger, Aldi, and Walmart. You should try to avoid more expensive stores whenever possible and make sure that you are getting the most bang for your buck.
Discounts and bargains aren’t limited to just food! It is common for stores like Target and Ulta to offer coupons and discounts for hair and skin care products so that you can take advantage of good bargains when they come around. Additionally, Target has weekly deals, so you can buy certain items when they are on sale! That includes groceries, home goods, and more.
Lastly, try to trim your budget the best you can. While you do not need to cut out every non-essential item, you should work hard to avoid overpaying on streaming services, subscriptions, and even your car insurance payment. Carefully review your budget and trim it wherever you can to combat the effects of inflation, but don’t forget to treat yourself occasionally! But if you’ve done all of these things and you still find yourself coming up short at the end of the month, contact LoanMart to find out more about ways you can give yourself some financial wiggle room using secured lending and existing equity.
