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Inflation is causing Americans to spend $445 more per month buying the same items they did a year ago, according to a Moody’s Analytics report. I have seen this myself when I go to the grocery store and buy five items … for $60.
The Federal Reserve concluded its September meeting by announcing that it will not raise interest rates. The economy is solid and job growth has slowed, but remains strong. Inflation is even coming down slowly.
What does this mean for you and me? As we know, inflation has resulted in higher consumer costs: higher prices for groceries, gas, and other everyday goods and services. Many are feeling the squeeze as they try to make ends meet.
People assume that because I am a financial journalist, I don’t have to make monetary adjustments, but that is simply not true. Here are four steps I use to make my dollar last longer:
1. Think about my needs vs wants
If you have been following my personal finance advice, everything begins and ends with your budget. Now is no different.
I sat down with my budget and literally took a pen and crossed out items that I may like, but don’t need.
It came down to a needs versus wants assessment: For example, I had two gym memberships, one to a rowing club and the other to a kickboxing club. I decided that I liked kickboxing more and canceled my rowing membership.
2. Shop sales and look for discounts
I don’t buy anything now without checking to see if it is on sale, whether that’s groceries, clothes, or household items.
Take advantage of memberships like Costco, where you can buy items in bulk and fuel up at Costco gas stations for less per gallon than the competition. I am a long-time member of the Marriott Bonvoy loyalty program, and when I travel I receive lower prices on rooms and upgrades.
3. Cut things I don’t care about
You have to know where your money is going. When I sat down and went through my budget, I found several items I didn’t know I was even paying for. I had to look at my monthly subscriptions: Netflix, HULU, Apple TV+. I even had the Disney bundle!
But the worst was a Hello Fresh meal delivery subscription that I didn’t even cook. I would find the food in the back of the refrigerator — spoiled. All of these subscriptions are just automatically deducted from my account, so it’s easy to forget about them.
I didn’t even know how much each one cost. I canceled several of those subscriptions and now that money stays in my checking account.
Start Saving for Your GoalsSoFi Checking and Savings is one of the best checking account options if you want to keep your savings and checking with one bank SoFi offers Money Vaults, a tool that can help you save for individual goals.
4. Leave room for small splurges
You can save money and not deny yourself happiness. People who have a budget that is too strict usually end up overspending. I always leave room in the budget for my gym membership, going out once a month with friends, and getting my hair done monthly.
Things that save you time or give you peace of mind are worth it.
We all have to adjust our lifestyle right now, and that includes me. If you’re trying to live the same lifestyle as last year, you are definitely paying more for it.