Managing your money these days may feel a little like putting on a pair of jeans that shrunk in the dryer. Suddenly, it seems there’s just not enough to cover everything. As you struggle to work within your budget, try not to feel bad. You haven’t gotten bigger; your money has gotten smaller. The cost of living rose in June at the fastest rate in 26 years. So it’s time to tighten those belts, pinch pennies, stretch dollars and make ends meet. Here are 7 ways to beat inflation:
1. Review your expenses
Every budget has some fat in it. Redouble your efforts to find it. Maybe a gym membership you haven’t been using? Or some daily $4 lattes you could do without?
2. Cut coupons
Get out those scissors and start clipping! Retailers and restaurants have gotten more generous with coupons for reluctant consumers. And the Internet has made it even easier to save with a slew of websites that can help you find those coupons.
3. Cut gas costs
If you buy gas, it’s undoubtedly taking up more room in your budget than it was a year ago. Minimize the impact by following our gas-saving advice. And consider a credit card that pays you back at the pump.
4. Cut food costs
It may be less obvious than the recent gas price increases, but food costs have gone up across the board. The key to saving at the grocery store is to avoid impulse buying: Make a list of what you need before you get to the store, and stick to it.
5. Cut utility bills
Look for a bunch of energy saving tips in our article: 7 ways to make your home more energy efficient. Two more favorite ways to save money immediately: raise the temperature on your thermostat and lower it on your hot water heater by a couple of degrees.
6. Tweak your investments
This may be a good time to adjust your investment portfolio. But don’t go it alone: a financial adviser can guide you through the inflation-proofing process.
7. Earn more
Ideally, while you can cut your spending, you can also increase your income. But that’s not always easy in today’s job market. Consider taking courses or getting an advanced degree to increase your earning potential for the long run.
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