Feeling the Inflation Pain? These Tips May Help

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By Gary Meeks, RICP®

A recent inflation report (July 13, 2022) showed inflation at its highest in 40 years with a 9.1% increase year over year. As you may know, inflation is the general increase in the prices of goods and services in an economy.

I have made a short list of things you can do to lessen the pain of high prices.

Budget: Now is a great time to do a budget if you don’t have one or to review your budget (Income & Expense) and see where you may be able to reduce expenses. You can create your own ledger or use a spreadsheet program. Budget examples abound on the internet.

Avoid credit card debt: With a higher price for goods and services, you may be tempted to reach for your credit card. Credit card rates are going up, so the cost of using credit cards is also increasing. Why the increase in interest rates? Raising interest rates is one way the Federal Reserve fights inflation. Prioritize paying off debt by paying off the highest rate cards first.

Are you paying too much for cable/satellite/streaming? Many people have several TV viewing services that they pay for. With streaming widely available now, it may be a good time to evaluate what service fits your needs and cut out those you can live without.

Save at the pump: Plan trips strategically. Consider using loyalty programs offered by grocery stores. Some gas stations offer discounts if you pay with cash. A phone app, such as GasBuddy or AAA, may help you find the best gas prices in your area.

Save on food: Cut back on eating out and check the dollar menu at fast food restaurants. Planning and preparing your own meals can save money and improve your health. At grocery stores, use coupons, buy store brands and stick to your list. Also, prices tend to be lower if you shop mid-week.

Shop Smart: Before buying new, consider thrift stores, Craigslist and Facebook Marketplace to find what you need at lower prices. Coupon websites offer discounts for many online purchases. A little effort on your part can save you a lot.

Be more energy efficient: Lower your utility bills by unplugging chargers when not in use, checking windows and doors and repairing air leaks, considering a programmable thermostat that adjusts the room temperature when you’re away, and regularly replace furnace and other filters. Keeping your home in good working order can save you dollars.

Investment opportunities: While high inflation and a tighter budget can make investing more difficult, now may be a good time to stay focused on long-term growth. With rates going up and the stock and bond markets going down this year, now may be a great investment opportunity for long-term investors.

Being proactive can help you save money. I hope the above suggestions will help you ease the pain of inflation.

Gary D. Meeks, RICP®, is a registered representative offering securities and advisory services through Cetera Advisor Networks LLC, member FINRA/SIPC, a broker dealer and Registered Investment Adviser. Cetera is under separate ownership from any other named entity. 90 West 100 North STE 6, Price, UT 84501 (435) 637-8160.

Sources: U.S Bureau of Labor Statistics report 7/13/2022, Newsweek 7/13/2022, Harfordfunds.com.

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