Have you noticed that everything is getting more expensive? Inflation is rising around the world at a rate not seen for a long time, so it is understandable that people are starting to panic and worry about their finances. The coronavirus pandemic and the Russian invasion of Ukraine has led to turbulence in economies around the globe, and unprecedented amounts of money printing have led to a sharp rise in inflation, which is compounded by the energy crisis and low wage growth. Everyone needs to be sensible with their money right now, so what can you do to combat inflation?
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1. Analyze Every Regular Expense
The first thing to do is to go through all of your regular expenses. You should consider whether or not it could be cut out from the budget (at least for the short term) or if there are ways that you could make savings. Even small changes like making a coffee at home to take in a thermos as opposed to buying one at a store can make a big difference over the course of the year.
2. Delay Big-Ticket Purchases
If you are thinking about any big-ticket purchases, you might want to put them on the back burner for now, if possible. It is these expensive purchases that will be the most noticeable, so things like buying a new car, home improvements, a new laptop, or even a new home should be delayed if this is possible.
3. Ask For A Raise
Many people will shy away from asking for a raise, but now is the time to do this if you have not been given one. Even if this is just in line with inflation, it can make a big difference to your finances and make life more comfortable for you and your family. If a raise is not possible, you might want to look at other ways to increase your income, such as online work, finding a new job, or selling items that you don’t need.
4. Invest In Gold
In addition to your spending, you also need to consider your savings during periods of inflation. Money that is sat in a current or savings account will be eroding with interest rates so low and inflation so high, so what should you do with this money? The stock market is volatile right now, so a good option is investing in gold which is always a smart hedge against inflation. You can buy gold nuggets for sale online from places like nuggetsbygrant.com, which will always hold value and can be a safe place for your money during periods of uncertainty.
Hopefully, the advice in this post will help you to combat inflation and manage the rising cost of living. It is a worrying time for everyone right now, but there are always positive steps that you can take to combat inflation and improve your financial health now and in the future.