The Upward Spiral
Prices have been going up and up in recent years. Even though the official inflation rate has eased off recently, international events, commodity price fluctuations, and other factors mean that inflation is never far away. Let’s look at some great strategies to cushion the blow of inflation.
Comparison Shop
Fighting inflation is about keeping costs down. Comparison shopping is a great way to make retailers compete for your money and keep prices reasonable. If you’re used to going to the same stores for products, you’ll be surprised at how much prices can vary between products sold at different stores. There are apps out there that will help you see what grocery stores are offering the best prices that week; you'll really notice the difference in prices.
Cut Food Waste
Know what you have in your fridge, freezer, and cupboards. Make a point of eating any foods that are getting close to expiry or freeze them if possible. This is especially true for things like fruits and vegetables. Throwing expired food out is a major waste of money and one of the worst habits to affect our wallet.
Buy In Bulk
Buying in bulk is a great way to save on dry goods as it's much cheaper by weight than buying prepackaged foods. This is especially true if you do a lot of cooking at home, which is something you already should be doing most of the time if you’re serious about saving money.
Get Reusable Items
Try as much as possible to buy items that you can use again and again. A washable reusable coffee filter basket is one obvious example of this principle. Put sandwiches in hard plastic or Tupperware containers instead of wrapping them in cling wrap or wax paper. Since the cost of paper towels has climbed upward in recent years, use cloth dishtowels for washing dishes or wiping up in the kitchen.
Invest Rather Than Stockpile Cash
Money loses value over time if it’s kept in a low-interest savings account during inflationary periods. You’re almost always better off parking money in a stock market index fund, real estate, or other low-risk diversified investments if possible. There are some solid investment principles to follow for long term success. If you’re unsure you can seek out a financial advisor for help.
Pay Off Your Debts
Debt is one of the areas where inflation can really hammer you if you’re not careful. If you have outstanding credit card debts or a variable rate mortgage, inflation is going to lead to higher interest rates and higher payments. Look at how much you owe, and substitute a repayment for some non-essential purchases. Quickly paying off credit card debt is one of the best ways to fight inflation over the long term and keep you financially sound into the future.
Stay Aware
We can’t afford to live in a bubble, and this expression holds doubly true for our finances. Keep yourself aware of how things are going in the economy, not just nationally but in your own community. Think about starting a budget if you don’t have one already, and take an active role in your own financial affairs. This is only one of the great financial habits you can start today if you want to secure your financial future against inflation.
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