Inflation has an impact on everyone. The lower your income, the less wiggle room you have. You’ll see a lot of advice these days about investing and how to make the most of your dollars in volatile markets and bonds. But, there are some practical ways to help yourself as prices for groceries, gas, and other items continue to trend upward.
These thoughts may be a little unorthodox, but they allow you to control what you can control and not worry about what you can’t.
Don’t panic. Watch your spending, set aside an emergency fund, be proactive in planning and be patient. If you do that, you’ll be well ahead of most Americans.
Take care of yourself. One of the rising costs is medical expenses. Many of the problems that people encountered during the last two years of COVID were underlying conditions. Don’t feel condemned or less than if you have one of these conditions. Learn to manage it well. Improve where you can — diet, exercise, medication, doctor’s visits etc. — and do your utmost to be proactive. Do what you can do and let God worry about the rest.
Stay away from the wants. With costs rising across the board, this is a season to be conservative. Many things can be put on hold for now. Plan and save for these purchases, and even though you may be paying cash, it may be wise to put off the purchase. You may need that cash for something else.
Postpone or delay big-ticket items. Mortgage rates are already ratcheting up, and new and used cars have been at non-negotiable highs for over a year. Staying put may best serve you while you wait out this inflation run.
Some things are still negotiable. Often, companies will be quick to offer better rates. It’s a good time for an insurance check-up. Also, on subscriptions like Hulu/Netflix, gym memberships, Sirius XM, cell phone bills, call to see if you can modify your plan or get a better rate. And it’s also an excellent time to call your credit card company to get a lower APR. That alone could save you plenty of $$$.
Talk to a financial advisor. If you have money invested, now is the time to have a conversation with your advisor. They generally have good advice, and they’ve weathered these storms before. If you don’t have one, email me, and I’ll introduce you to two people who will answer all of your questions.
Invest in yourself. Be sure to invest in yourself first. This should probably be first on the list. In tough times, it’s always a good idea to circle the wagons. In unsettled times, you must focus on the critical things. Take a look at life’s four walls.
Got cash? If you have cash, don’t just leave it in the bank. If you’ve paid off your debt, move it to savings, a money market or invest it. By doing that, you’ll minimize the effect of 7% inflation.
Want to chat more about what’s holding you back? Or how to manage finances, life or relationships?