According to a recent report, the average American is spending an additional $717/month due to inflation. That is $8,604 per year! OUCH!!
Now more than ever is the time to gain control of your finances. Here’s the good news…it is not too late to do something about this. Below are four quick tips to learn how to survive during this inflationary period.
Control What You Can Control
You may have heard the saying, “Control what you can control.” With inflation being the highest it has been in over thirty years, you may be thinking, “What possibly could I control when prices on everything have skyrocketed?!” You cannot change the reality of inflation. Below are four things you can control with your money starting right now!
Using a budget will help you regain control of your money. A budget is nothing more than you are telling your hard-earned money what to do. Make a list of all your income and all your expenses for the month. The goal is to get to zero. Any money you have left over, put it towards the baby step you are on. If you have more expenses than income, you will need to cut back on a few things temporarily.
2. Stop Borrowing More Money
This year alone, credit card balances have jumped over $46 billion dollars. That is the largest single year increase in over 20 years! Using credit cards is the wrong tool to help you gain control of your finances. If you are putting your bills and other spending on credit cards, you are kicking the proverbial can down the road and will only make the future worse. DO NOT fall for this trap!
3. Continue contributing to your retirement
If you are out of debt (not counting the mortgage) do not stop contributing to your retirement. Every month you should be investing no matter how good or bad the economy is. If you still have consumer debt, temporarily stop funding retirement to help you get out of debt faster. Then get back to investing for retirement.
4. Curb spending
This is never a fun option, but many Americans are finding creative ways to reduce spending to cover the necessities at home. Use this opportunity to review your spending and get focused on what matters the most to you. And while your curbing spending you may find some creative ways to save money as well.
Ultimately if you control you, that is your best chance of thriving during inflation. Who knows, inflation may be the perfect motivation for you to learn how to manage money well and say never again to financial stress!
If you are overwhelmed and are not sure where to start, meet with Justin for 30 minutes and get started on your financial freedom journey today.