High inflation and the subsequent 0.75% Fed rate hike are making budgets tighter and tighter. However, there are ways you can manage your money in order to save money despite these challenges.
Here are four ways to fight inflation and keep more money in your pocket. And be sure to find out if you qualify for a stimulus check to ease inflation in your state.
1. Negotiate better rates for insurance and mortgage
One way to save money despite high inflation and price increases is to negotiate better deals on the bills you already pay each month. When inflation is high, it’s a good idea to shop around for better rates on insurance policies.
Whether it’s your car insurance or homeowner’s insurance, by switching to a new policy or increasing your deductibles, you can potentially save a good amount each month without having to adjust your lifestyle. Additionally, if you find yourself unable to keep up with mortgage payments in times of inflation, refinancing your mortgage is another option that can free up some of your cash flow as your budget tightens.
2. Pay off credit card debt
In times of high inflation, it is important to pay off existing debts. Doing so will free up cash that would otherwise go to the APR payment and can instead be put into a savings account. As credit card interest rates have risen from 16% to 18.1% in the past months as part of the Fed’s anti-inflation plan, the priority must be given to paying off these balances as quickly as possible.
For those who face high interest rates and find their monthly credit card bills taking up a good portion of their budget, a card with a 0% APR interest offer can be helpful. Additionally, keeping your credit score high will qualify you for rates on the lower end of the card’s variable APR and allow you to get cards with more comprehensive benefits.
Check out our guide on how to pay off your credit card debt.
3. Save daily expenses like groceries
Being strategic about how you spend your money at the grocery store will also help you save despite inflation. Shopping for sale items and using coupons is one way to do that, and it’s made easier with apps like Ipota or Rakuten, which offers special cashback offers to users. Additional ways you can save on trips to the grocery store are by eliminating food waste by pre-planning meals, researching new recipes that use fewer or cheaper ingredients, and swapping in-store brand-brand purchases. Also, opening a card with a premium cashback rate for grocery shopping will help you save more.
4. Lower your energy bills
Unfortunately, higher inflation means higher energy costs that find their way into the consumer. But with a little effort, there are ways you can reduce your payment each month. One solution to this is to have an energy audit in your home, which can be done professionally or DIY. Doing so will assess how much energy you use and provide you with ways you can reduce your energy use, saving you money. Ministry of Energy Energy Saving Guide It proposes many ways to save energy costs, including
5. Reducing subscription services
Reassessing recurring expenses on your accounts can help you save more than you think. Surveys show that the average American spends $219 per month on subscription services (Opens in a new tab) and that two-thirds of consumers claim to have forgotten at least one recurring payment in their account.
An easy way to do this is by using a subscription management app like Money Rocket (Opens in a new tab) (formerly Truebill) can monitor your money for you. This way, you will be able to decide where your money is going and decide if your Netflix subscription is really worth it.