Ways to Handle the Cost of Inflation
June 9, 2022
With costs rising due to inflation, it can be hard to know where to start when dealing increased prices. We have some tips to help you handle the cost of inflation.
Reevaluate Your Budget
The cost of inflation can be hard on a budget – suddenly you’re paying more for everyday expenses than you did before. This can hurt your savings account and make it more difficult to prepare for future expenses. It may be time to reevaluate your budget and make some adjustments.
First start by looking at the last month’s expenses and compare it to your budget. Check the categories of groceries, gas, restaurants, entertainment, clothing, and household expenses. If your spending is higher in certain categories, look to other categories to see if you can make cuts from something like restaurants and put more toward groceries instead. Putting more money into the grocery budget can help your food go farther than spending at restaurants.
Determine ways to reduce your expenses
Once you’ve seen where you’re spending more, look for ways to cut other expenses. A great place to start is with recurring fees like subscriptions and memberships. Write down all the subscriptions and memberships you pay for each month and determine which ones you might be able to eliminate for now. For example, if you’re taking more walks outside in the nicer weather, maybe you can cut or reduce your gym membership. If you have some streaming services you hardly use, cut those out.
Look for ways to increase your income
Another way to help with inflation costs is by increasing your income. Look for side jobs that work with your schedule such as food or grocery delivery. Oftentimes these types of jobs feature flexible to hours that work for you. If you have a favorite store or restaurant, see if they may be hiring part-time workers. You might even get a discount that can help with your spending costs.
MSUFCU has a variety of options to help you deal with the rising costs of products and services. Our Savings BuilderSM account pays you more dividends on initial savings, helping you build your savings fund faster. We also have low-rate loans that will help you save money each month. Have a high-rate loan somewhere else? Contact MSUFCU today to see if you might be able to refinance to a lower rate.
Tags: Budgeting, Tips and Tricks, Money Management