{"id":362677,"date":"2022-08-25T09:56:47","date_gmt":"2022-08-25T15:56:47","guid":{"rendered":"https:\/\/www.creditrepair.com\/blog\/?p=362677"},"modified":"2022-08-25T09:56:49","modified_gmt":"2022-08-25T15:56:49","slug":"weathering-inflation","status":"publish","type":"post","link":"https:\/\/www.creditrepair.com\/blog\/money-management\/weathering-inflation\/","title":{"rendered":"10 tips for weathering inflation"},"content":{"rendered":"\n
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Disclosure regarding our editorial content standards.<\/a>\u00a0<\/p>\n\n\n\n

It seems like every time you turn on the news, something else is going up in price. Unfortunately, nothing seems immune to relentless price rises, whether it\u2019s gasoline, energy bills, food or luxury items.<\/p>\n\n\n\n

But what\u2019s behind all these price increases, and are there ways to beat inflation? We\u2019ve looked into the issue and come up with a few tips for weathering inflation.<\/p>\n\n\n\n

What is inflation, and how is it affecting you?<\/h2>\n\n\n\n

Inflation is the rise in prices over time, usually measured using a \u201cbasket\u201d of everyday goods and comparing their price from one year to the next. The inflation rate is the percentage increase in the cost of the entire basket. According to Statista<\/a>, the inflation rate in June 2022 was 9.1 percent, meaning everything you buy is increasing in price at a fairly rapid pace.<\/p>\n\n\n\n

If your salary isn\u2019t keeping pace with inflation, it can make life pretty tricky, especially if you were paid a low wage to begin with. If there was any room for treats and luxuries in your budget, you\u2019re probably having to cut back on those now.<\/p>\n\n\n\n

Fortunately, there\u2019s light at the end of the tunnel. Experts at Morningstar<\/a> are predicting that inflation has now peaked and will fall back to reasonable levels in 2023.<\/p>\n\n\n\n

But what to do in the meantime? Well, here are 10 of the top ways we believe you can weather inflation.<\/p>\n\n\n\n

10 tips on how to weather inflation<\/h2>\n\n\n\n

1. Celebrate a \u201cfinancial wealth day\u201d<\/h3>\n\n\n\n

The first thing to do is take a deep breath. Acting to improve your finances is not something you need to do in a rush. So take a day to analyze your finances. If you have a budget prepared, take it out and see if there are any savings to be made. If you haven\u2019t got a budget, it\u2019s time to prepare one.<\/p>\n\n\n\n

Getting your regular bills on the budget shouldn\u2019t be too hard, but make sure you have your latest utility statements for accuracy. If you\u2019re unsure how much you spend on something, dig out your bank statements.<\/p>\n\n\n\n

A helpful budget needs to be as accurate as possible, so make sure everything\u2019s included. Then, when you\u2019re done, you should hopefully be able to identify some potential savings.<\/p>\n\n\n\n

2. Cut down on the extras<\/h3>\n\n\n\n

We all have a few little things we spend money on that aren\u2019t really essential. And with inflation eating up your cash, this is the perfect area to make savings. For example, do you really need all those streaming subscriptions?<\/p>\n\n\n\n

It\u2019s important to remember at this point not to cut out everything you enjoy. Instead, identify the things you can really live without and cut those first. Then, work with your budget<\/a> and see how much you can afford, but also leave some room, as prices may continue to rise.<\/p>\n\n\n\n

3. Ask for a raise<\/h3>\n\n\n\n
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An excellent way to weather inflation is by having more money coming in, so why not ask for a raise? Remember, your employer is affected by inflation too. But this usually means they\u2019re also raising their prices and boosting their profits. So if your company has increased its prices by 9 percent, you deserve more too!<\/p>\n\n\n\n

If your productivity and performance are above average, remind your employer of that. If your skills are in short supply, use that to your advantage as well. The recent \u201cGreat Resignation\u201d isn\u2019t\u00a0over yet<\/a>. It\u2019s put a lot of skills in high demand, and companies don\u2019t want to lose valuable employees. But remember, watch out for lifestyle creep<\/a> once you get that raise.<\/p>\n\n\n\n

4. Save a new car for later<\/h3>\n\n\n\n

You might have been looking at your car and thinking it\u2019s getting old, so it\u2019s time to get a new one. Well, now is not a good time to spend that kind of money. Unless your car is about to break down for good or costs you a fortune in maintenance and repairs, it\u2019s better to save your money.<\/p>\n\n\n\n

Why? Cars are subject to inflation like everything else. However, at the moment, this is mainly due to supply chain issues and skill shortages, which are expected to be resolved later in 2022. This should lead to a drop in prices for used<\/a> and new cars in 2023.<\/p>\n\n\n\n

5. Avoid animal-based foods<\/h3>\n\n\n\n

The truth is that meat is expensive. This is primarily because meat takes much more energy to produce than plants and uses more land and water. For example, it requires 0.43 kWh of energy to produce 1 pound of corn<\/a>, while the same weight of beef requires 31.5 kWh. Even cheese is pretty energy intensive compared to plant-based foods.<\/p>\n\n\n\n

So substituting lentils and tofu for your beef and chicken won\u2019t just make you healthier; it\u2019ll also be easier on your pocket.<\/p>\n\n\n\n

6. Get and use a rewards credit card<\/h3>\n\n\n\n

You might think that using a credit card when times are tough is not the best idea, as you\u2019re storing more problems up for later. However, there are ways of using a credit card that can be helpful. For example, many credit cards now offer point systems that give you cash back, discounts on products or credit towards things like air travel, food delivery services and gas purchases.<\/p>\n\n\n\n

But it\u2019s best to be careful before embarking on a credit card spending spree to grab those rewards. Check the eligibility terms for your rewards before signing up for a credit card, and make sure the interest doesn\u2019t eat up any benefits. If you can pay the card off in full each month and still get your rewards, that\u2019s the best way to proceed.<\/p>\n\n\n\n

7. Call your credit card company and ask for a lower interest rate<\/h3>\n\n\n\n
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One thing that can hurt your spending power is the interest rate on your credit card. If you think the rate you\u2019re paying is too high, you can ask your credit card company to reduce it. The best way to do this is to shop around with other companies and tell your company that you can get a lower rate elsewhere. If they say no, you can always look at transferring your balance to a new lender.<\/p>\n\n\n\n

However, you should remember that an inquiry to lower your rate might affect your credit rating, as the company may need to do a credit check to see if you qualify for the lower rate.<\/p>\n\n\n\n

8. Look for extra work<\/h3>\n\n\n\n

If you\u2019re really struggling and have a bit of spare time, it might pay to find extra work. First, make sure your main employer doesn\u2019t have clauses in your contract forbidding this. There are a few jobs where part-time workers are needed outside regular office hours that you could do. These include:<\/p>\n\n\n\n