For some people, saving money in general is challenging. Add inflation to the equation and it may seem impossible. There are ways, however, to keep spending down and put money in your savings by following some simple guidelines.
Granted, it may take some self-discipline and training to handle your finances differently so your spending doesn’t get away from what you can comfortably afford. The first thing you should do, if you haven’t already, is make a monthly budget of what money you have coming in and what your expenses are. That way you know what you have to work with and what you may be able to set aside in savings.
💡 Fun Facts…
| 1) In 2008, Zimbabwe Inflation was so high, prices doubled every 24 hours |
| 2) The word “inflation” was first used in the early 1600s |
| 3) In March 1980, the inflation rate in the US was just under 15% |
Credit Cards
Credit card debt is a big culprit for siphoning our money away, especially when the interest rates go up during an inflationary period. You need to get a handle on what you charge and take a look at what your interest rates are. If you are to tackle that debt, it’s a good idea to start with the cards that have the highest interest rates and pay down as much as you can each month, which will lower your interest amounts. Another tip is to stop using your credit cards where possible, or at least stop adding to the balance on the cards with high interest. If you add up the monthly interest fees, you can see how much it’s costing you each year. That should be inspiration to stop using them so you can put that money away rather than throwing it away.
Groceries
It’s the number one rule not to go grocery shopping when you are hungry and there’s a reason for that! Obviously, everything looks good when you’re hungry and you may not care if it’s on sale or not, you just want to have it! So, be sure to eat a good meal before you head out to your favorite grocery store, or start adding items on the app if you shop ahead for curbside pickup. The next thing you can do to save is to shop the sales. Most grocers have a weekly circular with sales and coupons. Some also have a points system which you can cash in for grocery dollars which will give you a discount on your next order. Just be sure to check the app and apply the points into dollars so you will see it deducted from your next grocery order total. The number two rule of grocery shopping is to make a list and don’t just fly by the seat of your pants hoping you’ll get what you need. Just remember the five P’s. Proper preparation prevents poor performance. That will save you money because if you have a planned list you won’t be tempted to buy things you don’t need.
Everyday Expenses
The little things can add up. If you commute to work and are in the habit of stopping for coffee on the way, that could be an expense you don’t realize adds up to quite a chunk of change each week. It may be something you need to adjust in your daily habits. If you were to buy an automatic home coffee maker along with a travel cup or thermos to keep it hot, you’ll see how much you can save in just that one expense alone. It could add up to around $500 a year or more in your pocket generally speaking. Same goes for lunch. You may not be in the habit of brown bagging it, but let’s face it, if you’re trying to save money during difficult times, it’s always less expensive to make it yourself.
Check Subscriptions
Are you paying for apps you don’t actually use, but let it slide by each month, thinking, well it’s only $5.99 and it’s there if I do decide to use it. That one app alone adds up to nearly $72 per year. If you have ten of those you’re wasting almost $800 a year for things you don’t use. Tame those subscriptions and put that money in your savings account instead. You’ll be glad at the end of the year when you see your savings account balance larger than it was the year before!
Photo 89192351 © Andrey Popov | Dreamstime.com
OPINION
Inflation never goes away, and it seem like it’s been out of control the last couple of years. EVERYTHING seems to cost more, whether it’s groceries, gas, entertainment, cars or eating out. The best way to counter inflation is to invest your money and make it grow faster than the inflation rate. Right now, in mid-2023, savings rates have increased along with overall interest rates, so it’s not a bad idea to put some money away. You can also look for ways to cut costs by planning and managing your monthly budget.
