It’s not breaking news that prices have increased due to inflation. We’ve all watched from the front row as our grocery bills, utilities, and gas prices have risen to highs we’ve never seen. Unfortunately, the economy can’t just turn on a dime, which means these prices are likely to stick around. Here are some easy-to-follow tips to help you adjust to our current normal.
- Rework your budget: If you’ve been using the same budget for the last year, it’s time to sit down and reflect on your spending habits. Think about the categories in which you can minimize your spending, so that you end the month with funds left over. This will help ensure that you always have at least a small amount of emergency funds available or funds to spend on unexpected expenses next month.
- Look for off brand items at the grocery store: While you may be loyal to name brands, there is almost always a generic brand alternative. For example, a generic brand of Honey Nut Cheerios is $1.34 for a 12.25-ounce box, and the name brand is $3 for a 10.8-ounce box. By the time you add tax, that’s almost a $2 difference! Just think about how big of an impact those savings would make if you updated your entire grocery list.
- Keep tackling your debt: Despite an increase in the cost of living, if you have debt, you’re still responsible for paying it back. Consider using the Snowball Method to reduce debt and keep you motivated. This debt reduction method helps you pay off debt in order of smallest to largest, gaining momentum as you knock out each remaining balance. When the smallest debt is paid in full, roll over the minimum payment into the next smallest debt payment and keep the snowball rolling.
While these steps may be easy-to-follow, getting started with a new financial lifestyle can be a challenge. Ascentra has the tools to help you succeed. Our certified financial coaches can help you create a financial plan that you’re comfortable with and that works within your budget. Together we can combat inflation!