8 tips to help you stay afloat during inflation
People are grappling with higher prices for nearly everything. These are some of the ways to cope with the increased costs amid the inflation.
Inflation continues to bite as prices of commodities steadily rise. If unprepared, these rising costs can be a cause of financial stress, making it hard for you to stick to your budget. With a few simple tips however, you can make the most out of your money and keep your spending under control.
Here are ways to manage the rising costs:
1. Cut back on your spending
Take a moment to reassess your cash flow, make adjustments and adopt more conservative spending habits.
Do so by ensuring that essential needs like housing and groceries are covered and press pause on non-essential expenses like dining out or subscription services. These examples do not cut across the board for everyone. Find out what works for you and your household.
2. Continue funding your emergency fund
It is important to have some savings cushion to fall back on especially when inflation is high. This is especially important if your current income does not keep up with the rising prices.
3. Take on new debt sparingly or avoid debt
During high inflation, new debt adds a new monthly payment to your budget and this may cause a huge financial constraint on you especially if you do not have an extra source of income.
Live within your means to avoid borrowing money unnecessarily.
4. Save in a high-interest savings account
Store your money in a high-interest savings account as they offer interest rates that are higher than the rate of inflation, growing your money over time.
5. Avoid impulse purchases
It is important that you learn to control yourself especially with money. Before you purchase something, ask yourself if you really need it. If you do need something, you can purchase away without any guilt. This also ensures that you stick to your budget, avoiding unnecessary financial strains.
6. Shop during sales
When prices are high, comparison shopping can save you a lot of money. Paying more attention to sales and becoming a bargain hunter will guide you on where and when to shop.
This could be achieved by switching to more affordable brands or buying more items in bulk, tapping on the discounts.
7. Invest in quality items
It is important that you take note of what you are spending your money on. Investing in quality durable items instead of cheap products ensures that you save a shilling especially on money that would have otherwise been used to fund a repair or purchase of a new item.
8. Maximize loyalty and reward programs
Take advantage of the membership programs offered by your go-to shops, tour companies and supermarkets. Always enquire on the credit card points or rewards you’ve accumulated and redeem them for cash back, travel discounts and more.