Your Budget vs. High Inflation
Tips to trim your budget when inflation is high
It's important to assess your budget now that inflation has reached record highs. Even though creating a budget may be the last thing on your mind, rising gas and grocery prices may force you to reduce other wasteful spending. In order to help you combat inflation at home, BANK is providing the following five budget-cutting suggestions.
- Sell the things you no longer need or use – This could be a perfect opportunity to have a yard sale or to start listing things online. This may enable you to make some extra money. You might want to think about selling a larger item that requires a lot of maintenance, like an extra automobile, to avoid having to pay the additional insurance and tax obligations.
- Change auto insurance. Speaking of automobiles, carefully consider your auto insurance. You might be able to save money by changing your plan to one with a higher deductible. Additionally, you might want to consider switching insurance companies in order to save money.
- Eliminate wasteful spending – Carefully review your budget and outgoing costs. Perhaps you subscribe to a magazine that you don't read or a streaming service that you don't use frequently. Consider whether you are receiving value for your money. It could be appropriate to temporarily eliminate items from your budget. Consider modest expenses as well. For instance, if you go the coffee shop frequently, those expenditures can mount up quickly. Eliminating them from your spending plan might also add up quickly.
- Modify your shopping habits — Many people have been badly struck by the growing prices of essential needs, particularly groceries. Check your shopping list for any potential adjustments. Making the switch from name brand to generic products can result in some immediate savings. You could also make less of the things that have been most negatively impacted by inflation. For instance, the price of carbonated drinks like soda has increased significantly over the past 12 months. Your budget will benefit if you buy fewer of these kinds of goods.
- Consolidate credit card debt – If you're trying to reduce your credit card debt, it might be a good idea to look into balance transfer options that will let you do it at a cheaper interest rate. If you are carrying bigger balances, you might want to talk about your choices with a credit counseling organization because the promotional rate on balance transfer offers often expires after a period of six to 18 months. They can assist you in locating options that won't immediately bust your budget but will eventually aid in debt relief. Another option is to consider a Home Equity Line of Credit if you are a homeowner. The interest on a HELOC is generally much lower than a credit card. You can find out more about BANK’s HELOC product and even apply at www.bank.bank/home-equity.
While no one really enjoys creating a budget, revisiting yours is a smart step to take to avoid overspending today. By following these strategies, you can curb the negative impact of high inflation on your budget.
