If you’re trying to cut costs right now, you’re not alone.
- New data reveals that inflation is forcing the typical household to spend roughly $300 more per month than usual.
- Cutting back on costs and getting a side hustle might help reduce the effects of inflation on your budget.
It’s hardly a secret that inflation has been rampant since mid-2021. And unfortunately, the cost of living could continue to rise.
In fact, many people are being forced to dip into their savings each month just to make ends meet. But what about people who don’t have money in savings? Unfortunately, they risk landing in dangerous debt due to circumstances outside their control.
The average U.S. household is now spending an additional $300 per month due to inflation, according to recent data from Moody’s Analytics. That number is based on the latest reading from the Consumer Price Index, which rose 7.9% in February on an annual basis.
And the worst part? Moody’s says things could get worse before they get better. In light of that, you may want to consider taking the following steps to get through these tricky financial times — and to avoid gaining a pile of debt in the process.
1. Slash your housing costs
There are certain living costs you may not be able to cut back on. For example, you need to feed your family, and while you can aim to buy less expensive goods, at the end of the day, there’s a minimum amount of food you need to provide. Similarly, if you use your car to get to work, you can only reduce your fill-ups by so much.
But you may be able to spend less money on housing each month, which could go a long way toward freeing up cash for other bills. One possibility, if you rent a home and live alone, is to try getting a roommate. If you’re a couple who rents and has a spare bedroom, you can go the same route. And if you’re a family that owns a home, you can look into renting a portion of it out, like a finished basement. Having someone else chip in for housing expenses could make it easier to pay for things like food and fuel.
You can also look into refinancing your mortgage if you think you’re eligible for a lower rate on your home loan than what you’re …….