Planning for Inflation and Shortages

There could be some economic uncertainty in the months ahead when it comes to your purchasing power. Many of the people we speak with have been looking for ways to cope with upward pressure on prices, tariff impacts and budgeting shortages resulting from our current economic environment.

Anticipated increases in cost-of-living items ranging from household cleaning products to food could make it a challenging time when it comes to money matters.

Paying more for food, gas, autos and a variety of other goods and services affects all of us, but with a little planning and intention, it is possible to prepare and manage household budgets to smooth out a potentially unclear future.

Start with Priorities

One of the best ways to cope with inflation is to take the time to prioritize monthly spending. A spending plan helps to ensure that what you spend matches what you make each month as prices rise. For instance, if you set aside a specific dollar amount for monthly gas purchases, you can juggle other expenses as they come up by sticking to spending limits.

Knowing spending priorities can also help reduce the potential of adding to credit card balances.

Set and Stick to a Shopping List

Once you know what you must spend and have set a budget, take some time before each trip to the store to list out your purchases.

Using a shopping list can be the most powerful way to manage finances especially in the face of rising prices.

Take inventory of what you already have specific to items low in inventory or high in prices and make a list of what you need. If possible, plan out the meals you will prepare and check to see if you have all the necessary ingredients. Keep informed about what products are anticipated to go higher in price over the upcoming weeks and months. Cross-reference your list with deals and sales.

Stay Flexible

Making your list sets you up to stick to it – but stay flexible. You might have to go to a few stores for the best sales, coupons and specials to see if you can win a few extra savings points, especially on products that are low in inventory. You may find out that by splitting your shopping list up between several options gets you the best deals. Check dollar stores for deals on household items and within reason, stock up on those items where possible.

Bulk retailers or wholesale clubs, like Costco or Sam’s Club might be a good way to stock up on quantity for a lower per-use cost.

When shopping online, include any delivery or shipping costs versus transportation or fuel costs if you’re shopping in person.

Be flexible when it comes to timing your purchases. Do you really need that item right now? Wait for something to go on sale to buy it. For something that you could wait on, you can save money by waiting for it to be discounted. Or, if you can wait on a purchase, the price fluctuations might be in your favor.

The economy has a significant impact on our budget and it’s important to be prepared when it changes dramatically so that we are not caught off guard when it comes to paying for the necessities. 

Ascentra can help! If you are interested in learning more about budgeting, spending and financial preparations, visit ascentra.org/coaches to schedule time with an Ascentra Financial Coach.