You may think that inflation will never affect you —inflation does affect you—it affects your purchasing power. prepare for inflation by saving money. It’s not a secret that inflation is rising in the United States and even Globally.
It’s hard to know exactly how much inflation will be around the corner, but if you want to prepare for the next recession, you should start saving now. You have to save money in such a way that you’re actually investing in your future, not just living below your means today.
How do you prepare for inflation by saving money? The only way to save money in the long term is to save up every single month. So, what can you do to save a little extra money each month?
Reduce Your Spending
There is no secret to saving money. You just have to commit to doing it. But if you want to make big changes in your life and save more than $10,000 in one year, then you need to make a series of small changes over time. Start with one small change, and build from there. For example, start cutting back on eating out. Maybe you’ll spend half the amount you were spending on eating out per month, or maybe you’ll only go out once a week instead of twice. The key is to start somewhere, and work your way up. You will have to make some sacrifices, but those sacrifices will add up and lead to bigger and better savings in the long run. Only you know what you can cut back on. Perhaps you drink a coffee from the gas station or one of those fancy places. Try to bring your own from home. It is much cheaper to brew a pot of coffee at home than buying one or two out every day. However, you need to be willing to make some sacrifices if you want to save. You could also use and app like Acorn to turn cents into dollars.
Reduce Your Expenses
Check to lower rates on fixed expenses like your TV, internet, insurance and any other monthly expense that you might have. I was talking with my brother the other day and found out he pays $20 less every month on trash pick-up. Since we use the same company I asked why. He said they raised his price so he called and let them know he was not happy paying more and would be looking around for other trash companies. They quickly reduced his price back to where it was. This usually works with all your other services that have more than one provider in your area. It does not hurt to ask. Ask not have not.
I lowered my cell phone bill by over $80 per month, with two new phones, by switching providers and making the payment automatic. That’s $80 I can put away in savings or investments. Make the call!
Shop at Thrift Stores
What! No way I’m going to shop at any thrift store! Why not? Are you to proud to save a few bucks? You would be surprised what you can find in them. Why buy new exercise equipment when you can get the same thing for less than half the price and they work great. I bought a treadmill at my local thrift store for $15 about 16 years ago. I still walk on it. There really is a lot of decent stuff in the thrift store.
Use Coupons
I don’t know about you but we get coupon flyers in the mail two to three times a week. My wife clips the ones we might use and we use them. The key s to not just use them because you have them. Use coupons because you were going to buy it anyways. Save a few cents and put them into your piggy bank and turn those cents into dollars.
look for Deals Online
Lots of deals can be found online. If you know what you are looking for and know what the price is in the store. As a fisherman and outdoorsman I found a neat site on Facebook that lists deals every day or so. “Major Deals on Fishing, Hunting and Sports Gear” they do the work for me and show me some of the deals that I might need or enjoy. Again, always remember that if you were not going to buy it anyways don’t buy it just because its a deal.
Prepare For Inflation by Saving Money and Increase Your Savings Rate
This is a key takeaway I’d like to share with you today: It’s very easy to save money. Even if you have the same amount of money coming in every month, just by changing your spending habits, you can see savings accrue. Saving is about mindset. The sooner you start thinking about your finances, the sooner you can start seeing your savings grow.
Start an Automatic Savings Account
As a rule, the best time to start saving money is when you first earn it. I’m not going to lie, if you want to save money, it’s going to be tough. But I’ve found that the best way to save money is to do it automatically. This way, you don’t have to think about whether you should put the extra $5 or $50 into savings. If it is done automatically, before you see your paycheck, you won’t even miss it after a couple of weeks. All you have to do is get over that immediate shock then the rest is gravy. Check with your bank and employer to see what you need to do to get it done.
Invest Monthly in the Stock market
This is one of my favorite things to do. This principle is simple. All you need to do is invest $10-$20 a month and you can start making money within a couple years. If you decide to invest in the stock market, you can start by just adding a few dollars per month. Do your own research on online brokers to see which one you like. There are many available but please do your research. I use TD Ameritrade because I find it easy to use and I can have the app on my laptop and mobile devices. But do our own research! I read the other day that if a 30 year old invest $250 dollars each month in dividend producing stocks they will be able to retire very comfortably at 55 years old. The stock market always bounces back and basically produces 10% per year. DISCLAIMER: This information should not be considered as professional advice. Please seek a certified professional financial advisor if you need assistance.
Prepare For Inflation by Saving Money and Learning to Say No
There are two important lessons: One is about saving money, and the other is about learning to say no. In a world of infinite choices, we can often become overwhelmed and feel like we’re being bombarded with messages telling us what to do, buy, and consume. How do you decide what to buy?
Don’t Waste Money
One of the fastest ways to save money is to stop wasting it. Most people are wasteful when it comes to money because they don’t know how to save. One of the easiest ways to start saving money is to start evaluating what we are buying. Don’t buy just because you can. Don’t always buy the brand name buy the cheaper one. Sometimes it is important to buy the best because they usually last longer. But other times it is simply a matter of habit. Most of the time the store brand tastes as good as the name brand stuff and it is a lot cheaper. And bottom line is if it does not taste as good, once you eat it or cook with it for a short while you won’t miss the other. And you will save a bunch on your purchases.
Be Willing to Negotiate
This has also been called Haggling. Haggle for a better price and see if the seller will meet your price. If you’re in a hurry and the seller won’t budge on the price, walk away. You might be surprised how quickly they change their minds as you are headed for the door.
Prepare For Inflation by Saving Money and Get Rid of Junk
One of the most common ways to save money is by getting rid of junk. If you decide to get rid of something, sell it and put the money into your savings account. If you spend hours cleaning out your garage, you might get the urge to buy something new to take its place. Before you spend your hard-earned cash, consider whether it really makes sense to replace a garage full of junk with a bunch of new junk. Put it in your savings account or invest it. Don’t forget you emergency fund.
Prepare For Inflation by Saving Money and Build a Side Hustle
When I started my first business I started with the junk I had laying around my basement and garage. You’ve heard the old saying, “one man’s junk is another man’s treasure”. I took what I made and invested it into the business that is now a passive income earner for me. I started it by selling stuff I was not using and never made another investment into it other than reinvesting the profits. This was my first side hustle and now I have three side hustles with two being passive and my current one takes a little more of my time before it too will be passive. It does take hustle to build and lots of extra time but once built, turn it over to others to run and make them passive for you.
In conclusion, inflation is one of the most important economic indicators, and the best way to protect against inflation is to save money. By saving money, you can invest it in the future and grow your wealth. Over time, the money you save will compound, and when you retire, you will have enough money to live comfortably for the rest of your life. To save money, try to reduce the amount of money you spend each month. Reduce your spending by cutting back on unnecessary purchases, such as eating out, eating at fast food restaurants, and buying expensive gifts for others. Try to stick to the budget you created. You did create one didn’t you? When you reach your savings goal, you can begin to save for retirement.
Disclaimer
Information provided on InflationCents.com is for informational/entertainment purposes only. This information should not be considered as professional advice. Please seek a certified professional financial advisor if you need assistance. Rates and offers provided by advertisers can change frequently and without notice. We attempt to provide up to date information, but it could differ from actual numbers. Inflationcents.com may be compensated by 3rd party companies that are mentioned either through advertising, reviews, affiliate programs, or otherwise. All reviews and articles are based on objective analysis and no compensation will tilt our opinion.
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