Consider these inflation tips to help you save.
Although, inflation has cooled off some, sitting at 7.7% as of October 2022. That’s up from 5.39% last year. Budgeting right now is challenging more than ever. There are things you can do to save money while you’re waiting for prices to get back to normal. Read on to discover inflation tips, like what might be eating away at your bank account and how to reduce your expenses during high inflation times.
Let go of that subscription.
We can’t talk about inflation tips without addressing subscriptions. Subscriptions can be really convenient and entertaining, making them difficult to let go of. However, subscription prices are also on the rise. Apple recently increased US subscription prices for Apple Music, Apple TV+, and Apple One bundle. Hulu also increased prices recently. Amazon also raised prices for new and existing customers this year, increasing their Prime membership from $119 to $139 annually. With inflation so high, now is a good time to review all of your subscription services to see where you can make cuts and save.
Adjust how you save and invest.
Chances are your savings account isn’t earning you much. There are savings vehicles designed for inflation. Consider putting your money into Treasury Inflation-Protected Securities (TIPS) and/or Series I Savings Bonds. With an I bond, you earn both a fixed rate of interest and a rate that changes with inflation. However, you won’t be able to pull out cash for the first year. If you access your funds within the first five years, you will lose three months of interest. Both are designed to protect an investor’s money from inflation, but there are conditions. Make sure you understand them and their terms and conditions before putting your money in.
A shopping list is more important than ever.
An inflation tip for shopping is to always have a plan. Shopping without a plan can lead to unnecessary overspending. You can save money on groceries by swapping name brands for store ones, finding coupons, using apps, and more if you take the time to make a list and plan. That applies to other types of shopping too, whether you’re looking for a new appliance or pair of shoes.
While budgeting is no doubt challenging right now, there are inflation tips you can follow to save money and reducing overspending. Review your active subscriptions and recent price increases to see where you can make cuts. If your investments or savings account aren’t yielding high returns, consider putting your money in Treasury Inflation-Protected Securities or Series I Savings Bonds. As long as you don’t need to pull out cash for expenses any time in the next few years. Never shop without a shopping list. Going in with a plan will help you leverage coupons, discounts, alternatives, and other ways to save.