Fighting Inflation: Top 5 Ways to Budget

If it seems like your budget just doesn’t go as far as it used, you’re not alone. For millions of people, inflation is eating away at their budget. The latest statistics back this up. According to Moody’s Analytics and CNBC¹, inflation is costing American households, on average, nearly $300 a month. Everybody feels pinched but low and middle-income homes face the biggest challenges per CNBC².

To help you make it through this trying financial time, here are a few tips you can use to maximize your budget during high inflation.

1. Conduct an energy audit. Electricity and gas prices are a major driver of today’s inflation. The U.S. Department of Energy and Forbes³ encourage homeowners to curb energy costs by tackling a few relatively easy tasks such as sealing air leaks around windows, using energy efficient bulbs and carpooling to share fuel costs.

2. Take a second look at insurance. You may want to shop around for lower homeowners and car insurance policies. Consider raising your deductible if your monthly rate is still too high according to Forbes⁴ or look into safe driver discounts.

3. Cancel unnecessary subscriptions. Do you really need various streaming services, newspaper apps or multiple magazines subscriptions? The average household has 4.5 monthly streaming services reports Forbes⁵ and that can really add up. $30 a month for 12 months is $360 a year. If you’re looking for a quick and easy way to trim monthly costs, it may be the best place to start.

4. Make your meals go further. You need to eat of course. But what you eat and how you shop can be tweaked to stretch your budget. For instance, swap out brand name items for generic products recommends Forbes⁶, buy in bulk if possible and maybe even go meatless a couple of times each week.

5. Consider refinancing your home. For many families, a mortgage payment is their largest budget item. Forbes⁷ suggests you consider the length of time you’ll be in your home, available interest rates based on your credit score, and your closing costs when deciding if a refinance is right for you.

In addition to these specific tips, CNBC⁸ offers some general advice during this unsettling economic period. That includes being aware of when and why you are driving. For instance, rather than making multiple trips for different errands, combine your chores into a single outing. It will save gas. The same goes for grocery shopping. Instead of going out multiple times during the week, go once with a week-long meal plan so you only have to make a single trip suggests CNBC⁹.

You should also keep an eye on your credit card debt observes CNBC¹⁰. With lingering high prices, it’s easy to increase the balances you carry on your cards. But with interest rates expected to rise that could be a bad move says CNBC¹¹. But here’s the good news. With some careful planning and the tools and suggestions outlined above, you too can stretch your budget and make it a little easier to make ends meet each month.

Sources

1. “Inflation is costing U.S. households nearly $300 more a month. Here’s how to adjust your budget” CNBC, last accessed January 12, 2023  https://www.cnbc.com/2022/03/14/inflation-is-costing-us-households-nearly-300-more-a-month.html

2. “Inflation is costing U.S. households nearly $300 more a month. Here’s how to adjust your budget”

3. “8 Ways To Budget During Inflation” Forbes, last accessed December 6, 2022, https://www.forbes.com/advisor/personal-finance/how-to-budget-during-inflation/
 
4. “8 Ways To Budget During Inflation”
 
5. “8 Ways To Budget During Inflation”
 
6. “8 Ways To Budget During Inflation”
 
7. “8 Ways To Budget During Inflation”
 
8. “Inflation is costing U.S. households nearly $300 more a month. Here’s how to adjust your budget”
 
9. “Inflation is costing U.S. households nearly $300 more a month. Here’s how to adjust your budget”
 
10. “Inflation  is costing U.S. households nearly $300 more a month. Here’s how to adjust your budget”
 
11. “Inflation is costing U.S. households nearly $300 more a month. Here’s how to adjust your budget”

Y0040_GHHLVNGES_C