How to Adjust Your Budget for Inflation

Inflation is an increase in the prices of goods and services in an economy. We have all seen it happening and been impacted in some way or another. Here are a few tips on how to combat the impacts of inflation.

1.    Assess your current budget.

Where is your money going? Where has inflation impacted you the most? Review how much you used to spend on certain things versus how much you’re spending on them now. Necessities like groceries and gas are likely where you are seeing the largest spikes.

2.    Figure out how to scale back.

• When buying groceries, buy generic or store brands to save. Buy items when you see them on sale and use coupons. Buy in bulk so you don’t have to purchase as often. Plan your meals ahead of your grocery shopping so you know exactly what you need when you go shopping instead of buying a lot of miscellaneous items.
• Save on gas by using gas rewards. Combine errands or try to do everything in one place rather than traveling to different locations.
• Reduce your energy use at home by using energy efficient lights or turn them off whenever you’re not using them.

3.    Cut out unnecessary expenses.

• If you’re still paying for cable but primarily use streaming services, cancel your cable plan. Many shows and movies are available across several streaming services, so you don’t need them all.  Stick to just one or two. 
• Eat at home when you can and pack your lunch for work rather than buying food out every day. 
• Instead of stopping to get coffee on your way to work each morning, make it at home before you go. These might seem like small things but a few dollars a day adds up quick.

4.    Shop around.

Maybe its’s time check out some new stores that may have better deals. Sometimes we get in a habit of shopping at the same places because that’s what we’re used to but there could be places out there with better deals and prices we’re missing out on because of it. For instance, Aldi is a great grocery store for budget friendly grocery shopping.

Try these out and you’re sure to see a difference. Remember that each of these tips may make small changes individually but together they could make a big difference. For more financial tips, visit our blog page.