We’re living in expensive times right now. Inflation is rampant throughout the country, and a potential recession is knocking on the door if we are not already in it. Rising prices are hitting us where it hurts. It may seem impossible to stick to your budget now or in the future. Here are a few tips for managing your spending and being budget-wise during these times.
Track Your Spending
Let’s start out by establishing that if you’re not on a budget yet, you should be. At a minimum, tracking your spending to know where your money is going would be wise. Plenty of banking apps will support this already. Popular apps and websites like Mint, You Need A Budget, and Every Dollar will do it automatically for free for you. You could always open a spreadsheet if you are feeling savvy, and we have one we can email you to get you started.
Research, Research, Research
Take advantage of the resources we have in our hands. The internet is a wonderful thing, especially when it comes to researching your purchases. Researching an item or service you plan to buy can save you hundreds, sometimes thousands of dollars. The more time you spend researching, the more you will know the range you can expect to pay. You can usually find the best deal through aggregate search sites. For example, GasBuddy.com can show you where to find the cheapest gas in your area. Speaking of gas, that brings up the next tip.
Join Rewards Memberships
Many grocery stores and gas stations are offering you the option to enroll in memberships or reward cards. Some of them are free, and others have you pay a small fee. On the low end, you can save 10 cents a gallon, up to 20-30 cents per gallon of gas. That can add up over time. If you do this coincided with a grocery chain, you can double up the savings with grocery discounts too. Otherwise, it might be time to temporarily give up the avocado toast for breakfast.
Grocery Shop with a List
Shopping with a list can help you be more efficient at the grocery store and save you a lot of money. When shoppers go in without a list, they grab what looks good, impulse buy, and put things in the cart they may not need. Make yourself a list, and you will only get those things you need. Better yet, if you have a complete meal plan and a checklist to go with it, you can curb inflation and hunger.
Negotiate Bills
Here’s something we don’t always think we can control or change. Negotiate your utility bills, subscriptions, and interest rates. Negotiating your rent could save you hundreds of dollars, and many find this an effective way to put more money in their pocket each month.
Buy Secondhand
Why buy something at full price if you can find it lightly used for a fraction of the cost? This is usually the case with furniture that’s so expensive to buy. Secondhand sites like Facebook Marketplace or a local classifieds site can be a gold mine for things you need and cheap, and you can find virtually anything you need there.
Delayed Gratification
To be honest, things are just plain expensive right now. Supply chains are still out of whack. It may be worth it to wait for the home renovation or that new car. If you don’t absolutely need it right now, consider waiting until things calm down. When inflation does come back down to regular levels, you may just wish you had waited to purchase that airline ticket to Bora Bora.
Listen to a deep dive into these spending habits on the Power Up Wealth podcast.
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