15 Expert Tips for Beating Inflation The Talks Today

15 Expert Tips for Beating Inflation The Talks Today

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Your boss just called and gave you the bad news.

No, you haven’t given up, you’ve just taken about a 10% pay cut – effective immediately. Not a good start to your Wednesday morning. But that’s exactly what’s been happening to all of us since July of last year, whether we get the voice memo or not.

With the Consumer Price Index (CPI) up 8.5% year over year, Americans are feeling noticeably more anguished when it comes to paying for everyday items. Gasoline, food, etc. prices are almost all affected by the effects of inflation.

To put this in perspective, a person who made and spent $50,000 last year now needs to make $5,4262.41 to maintain their standard of living. If you don’t get that year-end raise that we were all hoping for last year, you’re probably a little pissed off, especially if things were really tight to begin with.

To that end, we’ve compiled a list of fifteen different ways you can restore your purchasing power and take inflation to the limit.

1. Transfer cash to a high-yield savings account

Having plenty of idle cash in cheap accounts is the most effective way to fight inflation.

What cash should you have on hand, such as emergency fund Or deposit cash for daily expenses Online Savings Account Regain as much purchasing power as possible.

You’re still losing out to inflation, but the goal here is to get as much of your earning power back as possible.

2. Get a cashback card

If you’re not looking for a new car or house, consider opening a new line of credit.

Responsible cardholders can take advantage of generous new card offers, many of which have solid cashback rates on gas, groceries and travel.

Since the market averages between 1% and 5% of the premiums in almost every category you can think of, this is an easy way to do that earn passive income Forever helps offset prolonged inflation.

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3. Take advantage of bank bonuses

Consumers can not only benefit from the banks’ desire to win new customers through higher interest rates.

Chances are there are several hundred free dollars waiting for you at one of the many traditional banking institutions.

For example, Discover Bank, a member of the FDIC, currently Offer rewards up to $200 (Code: GOBP622) to open a new account (only for new customers). Tiered bonus, earn $150 for deposits between $15,000, $24,999 and $200 when you deposit $25,000 or more.

Not everyone has that kind of cash on hand, but if you do and they’re making 0.06% of your traditional brick and mortar, this is an easy way to make a few hundred dollars by earning from their industry-leading APR of 1, 70% profit (minimum balance $0).

4. Use cashback apps

The only thing that beats a double ice cream cone on a hot summer day is triple cash.

smartphone cashback apps allow you to do just that. By using a cashback credit card linked to one of several popular cashback apps (which is then paid out using cash in a high-yielding savings account), users can reasonably expect cumulative savings in the 5-10% range.

If you’re shopping for groceries for a family of four or seemingly always at the pump, we’re talking about hundreds of dollars being saved every month. coupons Presented as the elusive fourth scoop for this money bag, so keep an eye out for those too!

5. Purchase planning

The only thing inflation loses more than holding savings in low-yielding cash accounts is spending money on frivolous things you didn’t need before.

Planning purchases before you head to the store helps you stay on track, and something as simple as sticking to a written list can help you take responsibility for buying only what you need.

stay on budget And the Track your expenses These are two more tried and tested tactics to ward off the temptation to see windows.

6. Cook at home

Grocery costs have skyrocketed over the past year, and those costs have been passed from restaurants to consumers (and then some). Perhaps easier said than done, cooking at home can be a game changer when it comes to saving money on groceries.

One of the best ways to start home cooking is to plan your meals a few days at a time in advance. If the thought of it sends shivers down your spine, remember that you can “repeat” meals you previously brought in in bulk; You don’t have to cook a unique meal from scratch three times a day.

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See also: 14 smart ways to save money when shopping

7. Buy in bulk

When money is tight you probably don’t want to buy bulk goods, but in many cases it’s really worth it – especially when it comes to groceries. For example, buying 2 chicken breasts costs $3 a pound, but if you buy the bulk pack of 6 breasts, you can probably get them for $2 a pound or less. That might not sound like much, but if you save more than 30% on the groceries you know you’re going to eat, it will help reduce your monthly grocery budget significantly.

The trick to buying in bulk if you’re new to it is to go from buying a two or three day supply of something and buying a one to two week supply instead. You’ll quickly see the benefits and feel more rewarded than buying 96 packs of toilet paper.

8. Reduce grocery deliveries

Grocery delivery has exploded during the pandemic, and for many of us the convenience factor has made it hard to give up once the world returns to normal. If you’re used to DoorDash (or whatever delivery service you use), here’s an easy way to free up space in your budget for other, more important things.

9. Walk in general

Brand loyalty in personal finance is like dying on a thousand sheets.

A recent study by Accenture showed that consumers spend an average of 18% more on products from their loyalty brands compared to similar products from other manufacturers.[1]

A good way to make the impact of 8.5% inflation even more painful is to pay about 20% more for it.

But really, even these numbers don’t paint the whole picture.

Take generic drugs for example. A recent study released by the Food and Drug Administration (FDA) showed that when six or more companies competed, generic drugs cost up to 95% less than their brand-name competitors.[2]

Excedrin migraine and Kroger migraine are exactly the same, but you pay about 700% less for the latter.

10. Diversify your portfolio

Talk of stagnation and high inflation worries many about the state of their investment portfolios. But turning money into cash or withdrawing from the markets altogether can do more harm than good.

Instead, experts suggest using periods of fear to ensure your money continues to be invested in a safe range of investment vehicles. Too much cash will maximize inflation losses, and too much capital can cause even more pain.

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Talk to a trusted financial advisor and ask them to show you how to invest your portfolio to protect against prolonged periods of inflation.

11. Negotiate bills or reduce subscriptions that are underused

Regardless of inflation, it’s a good idea to get used to doing this once or twice a year. We all have that free trial that we forgot to cancel, or that subscription we’ve overpaid for (like cable TV) for too long.

Also, if you and your spouse have an Amazon Prime subscription, make sure you consolidate the subscription into just one subscription. My wife and I practically paid double for Amazon Prime for over a year because we didn’t merge.

For more automated help to reduce your subscription costs, click here Invoice negotiation apps.

12. Gasoline and food reward apps

While popular cashback apps are great for saving money on everyday purchases, many people can save even more by using specific category apps.

Gas cashback apps like GasBuddy or Upside offer savings of up to 25 cents per gallon of gas.

Similarly, grocery apps like Ibotta allow active users to save up to $300 a month, according to a company spokesman.

13. Dealing with adjustable rate debt

When the Federal Reserve tries to fight inflation by raising interest rates, it means many lending products raise interest rates. For example, if you have credit card debt that previously accrued interest at 20% per annum, the interest rate on the same card has likely increased to 25% APR or more. That means more of your money is being used to pay interest than before.

As difficult as it may feel, it’s the best time to get serious Pay off your debt, especially your high-interest debt, now. There are many ways to do this, but one of the wisest options is to prioritize the debt with the highest interest rate first.

14. Consider inflation-adjusted investments

Treasury Inflation Protected Securities (TIPS) are government bonds that protect you from inflation. You pay interest twice a year at a fixed rate that is adjusted for inflation.

At the maturity of the TIPS, the modified principal amount or the original principal amount will be paid, whichever is greater.

  • Term: 5, 10 or 30 years
  • Minimum order: $100
  • Investment increase: multiples of $100
  • Issuing method: electronic

Related: 7 great short-term investments to grow your money

15. Don’t panic (and be very aggressive with risky investments)

Social media is full of stories about people (often younger than you) who got rich from the latest crypto token or NFT chain. While some of these stories are true, there’s no shortage of fake hype spearheaded by people who want nothing more than to part with your money. When money is tight, this is not the time to use it for a dog coin or animal jpeg image.