Unless you’ve just recently returned from a 5-year trip to Mars, you’ve probably heard that America is experiencing high inflation. If you haven’t heard that, you’ve certainly felt it when you buy eggs, or gas, a used car or just about anything. After staying firmly below 3% for 25 years, the inflation rate has spiked since the pandemic, peaking at over 8% and stubbornly staying around 5% or 6%. What does this mean, and how can you protect yourself?
Inflation is an economic phenomenon where the general level of prices for goods and services is rising, resulting in a decrease in the purchasing power of money. During times of high inflation, it can be challenging to make ends meet as the cost of living increases. It’s important to understand what you can do with your money during these times to protect your finances and maintain your financial health. Here are some tips on what individuals should do with their money during times of high inflation.
Check Out Better Ways to Save
Unfortunately, inflation affects us all and makes each one our dollars a little less valuable. There’s no way to avoid feeling this crunch entirely but by looking at your budget with a critical eye can not only free up cash for more essential things, it might allow you to cut out expenditures that you can live without.
Start by renegotiating bills like streaming, cable or cell phone service. Sometimes simply calling your provider is enough to be offered a plan that is more affordable than your current one. Nobody likes spending time calling companies with a well-deserved reputation for bad customer service but if it’s going to save you significantly, it’s worth it. There are services like Billshark that do this for you, for a fee (and, by the way, Allied provides a checking account in which Billshark is included for free).
While you’re looking at your subscriptions, ask yourself if you could cut one entirely. Is there a streaming service you only use occasionally? A technology service where you could live with the free version? Now is the time to think about it.
Check In On Your Spending
To make your dollar go further, extend its runway by cutting little purchases. Maybe it’s one less coffee run a week or generic groceries one month as opposed to name-brand items. Yes, these little perks are life-enhancers but cutting just a little is good for your overall financial health.
While you’re cutting on spending for little items, go full steam ahead on major purchases that you know you have to make. Those items are only likely to become pricier.
Bring More In
Have you considered a high-interest savings account? Allied is proud to offer them and they are beneficial in these moments when every penny counts.
Also have a look at our Care Checking line of checking accounts which offer plans that combine easy-to-use checking with services you likely pay for elsewhere. Advanced or Care Checking accounts provide roadside assistance, cell phone protection, identity theft protection and more. They even make your card eligible for discounts on local and national retailer purchases. In times like these, who couldn’t use a checking account that lets you earn great interest while saving money on scheduled and everyday purchases? Care Checking is an inflation buster.