Forget splurges and discretionary spending; it’s getting harder to pay for life’s essentials. Housing, food, transportation — necessary expenses for most people — are among the spending categories that have seen the biggest price jumps over the past year.
Feeling deflated by inflation? Take these five steps to limit your personal inflation – the rate at which your household expenses are rising – and the impact of surging prices on your wallet.
Inflation-busting tip #1: Begin with a budget
When the bills are ballooning faster than your paycheck, you can bring your budget back into balance in two ways: cut costs or bring in more money.
Since finding a higher-paying job or supplemental income can take time – and may not be necessary if you can keep expenses under control — start by examining the inflow and outflow of money in your bank account. Budgeting software or an online tool like Zions Bank’s home budget calculator can help you manage your monthly budget.
In taking a birds-eye view of your spending, you might see places where your expenses can be reduced or eliminated. Are you paying for a subscription service you rarely use? Or eating out more than you should?
You might also notice areas where your spending has spiked because of inflation. Perhaps more money needs to be allocated for fuel or groceries. Rejigger the budget to reflect the reality of today’s prices. Then you can make a plan for sticking to that budget.