In recent months we’ve seen inflation at record levels. Higher prices have impacted all of the ‘staples’ in life from gas to groceries, to housing and vehicles. So, what is inflation? “The price of goods and services—stuff you buy—isn’t constant; prices change over time. When prices go up, that’s inflation. During moments of inflation, it takes more money to buy products or services. This means that purchasing power goes down.”1.
We are all currently facing a nationwide problem of inflation. Inflation impacts everyone and doesn’t particularly care about your demographics – no matter who you are or where you live you are likely feeling the effects of inflation with no timeline as to when we might see and feel some relief.
Maneuvering through inflation looks different for everyone. For some, who are living within their means and have a nest egg saved back, it may have little impact. Though others who are living above their means, with little or no savings, may experience the greatest impact.
CSE cares about our members and we understand that in the face of inflation many members are being forced to make some tough money choices and changes. So, we’re here to help give some guidance through these tough times. Let’s tap into how to make your money go further.
- Live within your means.
The first step to making your money go further is to ensure you’re living within your means. So what’s that mean? If you’re looking for a car, or house, or any large purchase for that matter, make sure it’s actually in your budget. In some cases, you might need to save a little more to avoid going into a debt larger than you can afford or considering a cheaper option.
- Think twice before saving your cards to shopping payment checkouts.
It’s easy and convenient to save your credit/debit card(s) to websites and apps in order to make a purchase quicker. But, if you’re lacking in your discipline, it might not be the best idea. Credit card debt is easily racked or your checking account balance can be spent quickly when you simply hit buy now with all of your payment information saved. If you have to physically put in your card information, it may make you think twice about making the purchases, which will in turn hopefully save you money.
- Save big money in the kitchen.
One of the biggest wastes of money is food waste. Why spend money on food that you’re likely just going to let spoil? Instead, try to meal plan and meal prep so less of your groceries and leftovers go to waste. Plus, you’re only buying what you need and not what looks good on the shelf which will help you stick to a budget. (Oh, and don’t forget to eat before you go grocery shopping!)
Learn more about this tip with our Banzai! article, 8 Tips to Reduce Your Food Bill.
- Trim your budget with lower monthly bills.
There are a number of ways to trim your budget, first by evaluating your wants and needs. For example, you could consider getting rid of or slimming down your cable package or streaming services to trim your budget. Consider negotiating some of your bills if applicable. Be more prepared in general, that way you’re not buying on a whim and over-spending.
Learn more about this tip with our Banzai! article, 14 Ways to Cut Household Expenses and Try out our Trim Your Budget Coach
- Get your emergency fund in check.
Your emergency fund – what you save – should be a top priority when it comes to your paycheck. Putting a little back each pay can really go a long way. Unfortunately, all too often an emergency fund falls by the way-side. If saving seems impossible, make sure to explore all your avenues for a financial cushion.
Try out our Emergency Fund Coach.
Inflation can be a scary word and topic. But a downturn in the market, and rises prices is no reason to panic; it’s happened before and it will happen again. Look at this as an opportunity to evaluate your finances and get them in order and to actively save money and live a life within your means during this timeframe.
CSE Resources
Schedule a time to chat with Reggie, our Certified Member Financial Counselor. He can help review your financial picture and look for ways to get you on track.
Our Banzai! Education Resource Center has a number of great articles to help you learn more about inflation, and how to manage your money during this frantic financial free-for-all. Check out those articles and resources here:
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