Today’s high inflation rates have reduced most people’s spending power. Many consumers are having to adjust their shopping habits to ensure that they can afford their essential expenses.
Thankfully, you can implement several creative strategies to save money and maintain an optimal quality of life while prices remain high.
How to Save Money During High Inflation
There are many ways to save money during high inflation. Adopting several of these strategies can help you keep more money in your bank account amidst rising interest rates.
In alphabetical order, here are the top ways to save during inflationary times and avoid letting higher interest rates derail your personal financial wellness.
1. Add Saving to Your Budget
It’s critical to include saving money in your budget. Being intentional about setting aside cash for future expenses or a rainy day is an excellent first step since it can ensure you are being vigilant about saving.
Additionally, saving money can help you afford major purchases later on so that you won’t have to go into debt or delay making a purchase.
After reviewing your spending patterns, an easy starting place can be committing to automatically transfer $100 from every paycheck into your savings account.
Another option is practicing the 50/30/20 rule where (if possible) 20% of your income goes into savings.
If either of these initial suggestions are too challenging to afford, determine which of your expenses you can cut. Then, you use your cost savings to fund your savings account instead of putting it towards another purchase category.
2. Ask for a Raise
Typically, employers offer raises of up to 3% annually to keep up with inflation. However, that precedent is insufficient since the official inflation rate is near 8%.
You have more negotiation power to get a raise in a tight labor market where many businesses need employees. In most cities, it’s not uncommon to see “Help Wanted” signs at many locations.
Your employer may also be more agreeable to salary increases if your co-workers are currently leaving for better opportunities.
Before asking for a raise, be sure to have some compelling reasons as to why you deserve an increase in pay.
Some topics to research may include:
- The average industry salary for your position
- Your qualifications and recent achievements
- Learning additional skills to justify …….