Inflation is on the rise, and you’ve likely already felt it in your monthly budget. Adjusting your budget can help accommodate rising costs and ensure you have the resources available to provide for yourself and your family. Reviewing your expenses, finding places to save, developing a strategy, and staying flexible can help you to navigate inflation.
Review your costs
Do you have a good sense of how much money is leaving your account each month? How much are you spending on groceries, utilities, and entertainment? Are there any opportunities to cut back, or to cut out certain expenses altogether? Taking a close look at your costs and reducing where you’re able can help you to combat rising prices and maintain a sense of financial balance.
Note what’s changed and what hasn’t
Eggs are more expensive than ever, your electricity bill has spiked, gas prices are through the roof, and your subscription services are suddenly twice as much as they used to be. Inflation has changed countless aspects of our lives, but thankfully, not all of them. For example, your health insurance premiums may have gone up this year, but your life insurance premium might have stayed the same, particularly if you have whole life insurance. Whole life insurance premiums remain consistent, so you don’t need to adjust that line in your budget.
Find places to save
There are likely places to save that you haven’t yet identified. Find places where you’re willing to compromise—maybe you can make your lunch or cancel a clothing subscription service you’re unhappy with. Becoming clear about how, when, and where you’re able to save can be life-changing, no matter your goals or circumstances. Eliminating non-necessary expenses can help give your budgets some breathing room when things become tight.
Strategize
Developing a strategy to supplement your income is another way to combat inflation. Shopping around for the best deal, thrifting clothes and homewares, or starting a side hustle are all great ways to free up cash within your budget. Who knows—you may find a brand-new hobby or moneymaking endeavor in the process!
Stay flexible
Like everything in life, inflation won’t last forever, but it’s important that you stay flexible and develop a plan that will help you ride the highs and the lows. Prioritize what’s important, cut back where you can, and put aside cash for a rainy day—even a little bit can go a long way toward getting you and your family through times of uncertainty, while allowing you to focus on what matters most.  Â
