Prepare your financial situation to prevent a hit from inflation.
Sponsored by Frost
By Jenny Hoff
Inflation can feel like a relentless tide, pushing up the cost of everyday essentials and making it harder to stretch your paycheck. However, with some savvy strategies, you can navigate these choppy waters and keep your finances afloat. Here are some practical tips to help you combat inflation and make the most of your money without requiring additional purchases.
Earn Money on Your Savings
If you have a traditional savings account with one of the big banks, you’re likely getting little to no interest on your hard-earned money. While inflation is devaluing your money by the day, your first step should be to transfer your savings to a bank that will pay you at least 4% to 5% interest. Some online banks will have the best rates, but even more traditional names like American Express Bank may offer a higher interest than what you have now. Bankrate.com is a source to use for updated, current interest rates. Another option is to put your savings in a short-term treasury bond, which can pay around 5.5% interest. But, whatever you do, don’t keep it in a bank account that pays you 1% or less.
Smart Grocery Shopping
Plan Your Meals: Create a weekly meal plan and shopping list to avoid impulse buys. Stick to your list to prevent overspending. For example, if you plan to make spaghetti, ensure you have all the ingredients at home before heading to the store, so you’re less tempted to buy unnecessary items. If you are an impulse buyer, consider ordering your food with a grocery service to avoid picking up extras that may catch your eye in the supermarket.
Use Coupons and Apps: Take advantage of coupons and cashback apps like Ibotta or Rakuten to save on groceries. These apps often offer rebates on everyday items, which can add up over time. Never leave free money on the table!
Leverage Credit Card Rewards: Use credit cards that offer high rewards on grocery purchases. For example, the Blue Cash Preferred® Card from American Express offers 6% cash back at U.S. supermarkets on up to $6,000 per year in purchases. And pay off your balance, in full, each month to avoid interest charges.
Entertainment on a Budget
Free and Low-Cost Activities: There are many free things to do in Austin that can keep you entertained without breaking the bank. Websites like Austin.com or 365 Austin have many listing of free festivals and events happening in Austin.
Library Resources: If you haven’t used library resources in awhile, you might be surprised to know you can get much more than physical books for free. If you’re a Kindle or Audible enthusiast, the Libby app allows you to download a huge selection of books for free. The Austin Public Library also offers various free events and workshops, such as book clubs, craft sessions, and educational programs. It’s a great option for fun with kids as well!
Mindful Spending
Track Your Expenses: With no-touch purchasing, it seems easier than ever to rack up credit card bills. While technology makes it easy to spend, it’s also easier to be mindful with your spending. Use budgeting apps like Mint or YNAB to keep track of your spending and identify areas where you can cut back. You may discover that you’re spending more on dining out than you realized, which could prompt you to cook more meals at home.
Prioritize Needs Over Wants: Focus on essential expenses and limit discretionary spending. Make a list of your monthly expenses and categorize them into needs (e.g., rent, utilities, groceries) and wants (e.g., dining out, entertainment). This will help you see where you can cut back.
Set Financial Goals: Establish short-term and long-term financial goals to stay motivated and disciplined. By setting financial goals, and sticking to them, bigger purchases or savings can seem more affordable or attainable in the long-run. For example, you might set a goal to save $500 for an emergency fund within the next three months or to pay off a credit card balance by the end of the year.
By implementing these practical tips, you can better manage your finances and mitigate the impact of inflation. Remember, every small step counts. With a proactive approach, you can navigate through inflationary pressures and achieve financial stability.
1 Comment
Its like you read my mind You appear to know so much about this like you wrote the book in it or something I think that you can do with a few pics to drive the message home a little bit but instead of that this is excellent blog A fantastic read Ill certainly be back