Inflation means people around the country are feeling the squeeze in their finances in just about every facet of daily life.
Here are some steps you can take to protect your finances against inflation and put more money back into your savings account.
Join a wholesale club like Sam’s or Costco
When the prices climb higher for individual items at the grocery store, it is important to switch from itemized shopping to buying in bulk.
When joining a wholesale club, it is necessary to purchase a club membership or to remain a member the following year, but that money is easily made up through the savings received.
Look at the monthly grocery list and pinpoint items that are frequently purchased. For many families, that means stocking up on toilet paper, paper towels, cleaning products, and meats.
Cut the cable TV cord and stream instead
Those who are still spending hundreds of dollars on their cable bill are simply paying way too much.
You can get a cheaper alternative by switching to video streamers, including Sling, YouTube TV, Hulu, and Netflix.
Cutting the cable TV cord is easiest for those who want to save money and make that a priority as you can customize what you watch. One big secret is that with streaming services you can have multiple family members at different households sharing the services and splitting the costs.
Another great way to reduce your monthly costs is by refinancing your mortgage or auto loans while interest rates remain low.
One of the best reasons to refinance is that you have an opportunity to reduce your interest rate as well as create a lower payment.
If the current value of your home or vehicle exceeds what you owe, you may be able to access more money through refinancing.
Home equity lines of credit typically have lower interest rates than other types of loans. This makes it a great option for reducing other large financial expenses.
Review your debt
Rates are still low, so now might be the time to review your highest-rate debt balances and find opportunities to refinance or consolidate fixed-rate loans.
In addition, if you have good credit and stable employment, considering applying for a new credit card taking advantage of some of those 0% intro APR offers. Often there is no annual fee so you will save some additional dollars.
In times of rising inflation, it is good to check in with an advisor to ensure you have the right investment allocation to match your appetite for risk
Stocks provides inflation protection in two main ways. The first is that stocks often pay a dividend whereas bonds, generally, pay a fixed amount.
The second inflation fighting component that stocks provide is growth. Outpacing inflation has long been a reason to invest in stocks of all types.
Their track record speaks for itself. Large U.S. stocks have outpaced inflation over the last 100 years by roughly 7% per year.