If your calendar says July 2022, then there is something that you purchased that is a lot more expensive than it was one year ago. Why is that, you may ask. It is due to inflation. The buying power of the US dollar is not what it used to be, so it takes a lot more of them to purchase the similar products that we are used to. Some manufacturers have even started reducing the size of their products so that they do not have to raise their prices substantially. While it may feel as though you do not have a choice in the matter with regards to whether inflation affects you, there are things that you can do to help lessen its affects on your household.
Make sure to keep investing
Inflation is directly affecting the stock market. This means that stocks that may have been unaffordable before, might be an option for adding to a portfolio. Many large companies, like Google and Apple, have recently split their stocks which mans that one share is a fraction of what it may have been selling for previously. The whole notion of "Buy low, Sell High" can be done right now as we speak. Always consult a financial advisor before making decisions regarding savings, retirements accounts, etc.
Clean up your Budget
Our technology riddled society means, that most items are on auto pay in many families. Which usually means, it is not reviewed constantly. This is a sure fire way to what I like to call "leaky budget syndrome". Many billers have a locked in contract for a specific amount of time or until rates change. Some people have everything going to their email so it is very easy to miss the rate increase notices until either it overdrafts the account or the family notices that the available balance is not what was expected even though pay day was 2 days ago. During a time when money can become an issue for most, it is necessary to pull out your bank statement and pay close attention to where your money is going. For example, paying for HBO Max, but you cannot remember the last time anyone in the family used the app or watched a movie or show. Those are the items that you want to scrutinize and remove. Most families are paying out $100s every month in unused subscriptions because it sounded like a good idea at the time. You could have that money to offset the current times.
Increase your Income
Uber Eats, Postmates, Grubhub, Doordash, etc. are great ways to make additional income. You may love your job so getting different one may not be an option for you. Having a side gig that is flexible might be all that is needed to help supplement an additional $100 to $200 per week. That money can be used to bridge the gap with either groceries or gas. Increasing your income will help to alleviate the pressure that most may feel from their paychecks not stretching as far as it used to. Many people have also supplemented their income with reselling on Amazon, manufacturing items for sale, or being a freelancer. There are also sites like Turo, where you can rent out your car. If you soul search and find a way to monetize something that you love doing anyway, maybe you can make a 2nd career out of it.
Do Research on Moving your Money to Savings Bonds
"The national average interest rate for savings accounts is 0.1 percent, according to Bankrate's July 6 weekly survey of institutions" (www.bankrate.com). That means that $1,000 in a savings account will gain the owner of the account, $1 in one year! Due to the interest rate being annual, that $1 will be given in small increments either monthly or quarterly depending on the bank. Therefore, money sitting in a savings account is losing money if it is only growing at 0.1% per year. The current annual inflation rate is 9.1% (www.usinflationcalculator.com). Series I savings bonds could be an option to stay the course with inflation being that they gain, currently, 9.62%. Series I Bonds are government bonds that can be purchased at Treasuredirect.gov. Their rate of 9.62% is locked until October 2022 and it resets every 6 months.
Regardless of your situation, you have the ability to survey all of your assets and expenses. Make changes where you need to and allow what is necessary. Utilize resources and become adaptable. If you do not do anything else, always remember that hard times is when the most wealth is generated.
See you at the TOP!
BY: Ronelle Hunte-Roddy
Customized Insurance Brokers
****Please Note: I am not a financial advisor so always do your research before making any decisions with regards to savings, retirement accounts, IRA's etc.****