Financial Tips To Help You Manage During This Time Of Record Inflation

These past few years have been particularly rough for most people, with inflation rising at an unprecedented rate. And there doesn’t seem to be any end in sight.

Last summer, I came face-to-face with this when I needed to buy a car. Not only had the prices of new cars skyrocketed in recent years, but most dealers were charging well over MSRP, as cars were hard to come by “due to the chip shortage and supply chain issues”. The same car that I could have bought for $20K just a few years ago was now commanding $30K or more! Used car prices have risen at a staggering rate as well.

And it’s not just big-ticket items. Walk into any grocery store and you’re bound to get hit with sticker shock. Eggs are now $6 a dozen, beef and chicken are super expensive, and the list goes on and on. A normal shopping trip that used to cost me $30 is now closer to $50. Go to the gas station and you’re paying $2/gallon more than last year. Even Netflix raised their prices.

But you know what hasn’t changed? My salary. Sure, I’m maybe getting a 3% raise each year if I’m lucky, but inflation has way exceeded that. In reality, I’ve actually got less spending power than before, so I have to be mindful with how I spend my money. For me, that meant taking a hard look at your finances and cutting out the fat. With that said..

Here are some easy ways to save more money in 2023:

1. Pay Down Your Debt – Most Americans carry a bit of debt, whether it’s a credit card balance, car loan, mortgage, or something else. What you need to look at is your interest rates and see if you can’t get that down some. Using a free financial calculator, you can see how a credit card with a lower APR could bring down your monthly payment. Or if it’s worth refinancing your home. Or if it makes sense to take money out of your savings to pay down high-interest debt.
2. Separate Wants And Needs – When you take a look at your monthly spending habits, you’re sure to discover a lot of wasted money along the way. Whether it’s that $5/day Starbucks habit, the mounting food delivery costs from Uber Eats, or the fact that you subscribe to 5 streaming services, there are a lot of places where you can cut the fat. Brew coffee at home, meal prep for the week, and get rid of any subscriptions you aren’t using. Trust me, it all adds up.
3. Watch Out For Hidden Fees – Another way to save is to check your bills for any sneaky fees that can be avoided. To steer clear of bank account fees, for instance, only take out cash at fee-free ATMs, regularly check your account balance to avoid overdrafts, and make sure you maintain any minimum balance required to avoid monthly maintenance fees. 
4. Don’t Buy A Car Or Take A Trip If You Can Help It – As I said before, car prices are totally out of control right now. So if you can get by with your current vehicle for a few more years, you’ll be way ahead of the game. Same goes for vacations, as airfare prices have risen considerably over the past year. If you absolutely must get away, consider taking a road trip or staycation instead.
5. Write Down Everything You Spend – We live in this time where it’s easy to swipe or tap your credit card and go, without really thinking about the implications at the moment. But you’ll find that the more you write down, the less you’ll want to spend.
6. Start A Side Hustle – If you still can’t get ahead of your bills, there’s never been a better time to start a little side business that takes advantage of your skills. If you’re a creative type, sites like Fiverr, Upwork and 99designs connect freelancers specializing in writing, editing, graphic design and voice-over work with clients in need. If you’re crafty, consider designing and selling products on Etsy. And if you’re musical, consider giving music lessons.

Hopefully these tips can help you to get ahead in these trying times. There’s no telling when things will turn around and come back to normal, so it’s best to get a handle on your finances and trim expenses whenever possible. What you’ll find is that you’re not really giving up too much, and you can rest easier knowing that you’re able to save some money each month.

Good luck!