5 Inflation-Busting Financial Tips
Feeling deflated by inflation? These 5 tips can help reduce the impact of surging prices on your wallet.
Forget splurges and discretionary spending; it’s getting harder to pay for life’s essentials. Housing, food, transportation — necessary expenses for most people — are among the spending categories that have seen the biggest price jumps over the past year.
Feeling deflated by inflation? Take these five steps to limit your personal inflation – the rate at which your household expenses are rising – and the impact of surging prices on your wallet.
Inflation-busting tip #1: Begin with a budget
When the bills are ballooning faster than your paycheck, you can bring your budget back into balance in two ways: cut costs or bring in more money.
Since finding a higher-paying job or supplemental income can take time – and may not be necessary if you can keep expenses under control — start by examining the inflow and outflow of money in your bank account. Budgeting software or an online tool like Zions Bank’s home budget calculator can help you manage your monthly budget.
In taking a birds-eye view of your spending, you might see places where your expenses can be reduced or eliminated. Are you paying for a subscription service you rarely use? Or eating out more than you should?
You might also notice areas where your spending has spiked because of inflation. Perhaps more money needs to be allocated for fuel or groceries. Rejigger the budget to reflect the reality of today’s prices. Then you can make a plan for sticking to that budget.
Inflation-busting tip #2: Get time on your side
Budget management is largely time management. In a time of inflation, it’s important to plan not only for far-off expenditures like retirement or college, but to also anticipate day-to-day needs so you can spend strategically. Making a shopping list in advance, timing purchases around sales, and paying bills on time are just a few ways you can harness time to combat rising costs.
Inflation-busting tip #3: Tweak your shopping lists
Cross off bacon and add broccoli to your grocery shopping list. That’s because some prices are escalating faster than others. The price of fruits and vegetables grew 7.8% over the past year, for instance, while meats, poultry, fish, and eggs spiked 14.3% — almost double that rate, according to the May 2022 Consumer Price Index.
Whether you choose to implement Meatless Mondays or go full vegan, reduced reliance on animal products can help keep the grocery bill from eating up your food budget. When buying meat, opt for leaner cuts, which tend to be less expensive. Consider buying meat in larger value packages you can divide up and freeze some for later.
While the food at home index rose more than 10% over the past year — its biggest jump since Jimmy Carter was president — it remains a more budget-friendly alternative to dining out.
Inflation-busting tip #4: Put the brakes on travel
As gas prices accelerate and airfares soar, tighten your radius for nonessential travel. A vacation spot three hours away could offer the same psychological escape as a destination 13 hours away, without running up your gas bill.
To keep gas prices from driving your budget to the ground, keep your fuel tank over half full, drive at an even speed, and double up on errands to limit trips.
Inflation-busting tip #5: Save your energy
Shocked by your electricity bill? That’s another impact of inflation. Luckily, energy use is an area where most people can cut back. Start with the air conditioner – a major culprit of soaring summer energy costs. You can save as much as 10% per year on heating and cooling by adjusting your thermostat by 7-10 degrees for eight hours a day, according to the U.S. Department of Energy.
To help further keep costs down, change air conditioning filters regularly, weatherstrip your doors, and shade your outside compressor.
The inflationary economy may be out of your personal control but getting creative with your spending strategies and habits can help keep its impacts on your personal finances at bay.
Kallee Feuz is a public relations officer for Zions Bank.
