What You Need To Know About Inflation And Budgeting
Inflation is killing our budgets. Food prices have gone up by 11.9%, electricity has gone up by 12%, and gas prices have almost doubled. With prices going up, it is important you know about inflation and budgeting so you can properly make adjustments and help your finances. Here are a few tips you should keep in mind when it comes to inflation and budgeting.
Tips To Learn About Inflation And Budgeting
Review Your Old Budget
You may already be practical when it comes to your spending. You may even have a budget already in place that is working for your finances. However, the problem with inflation and budgeting is that the money doesn’t go as far as it used to if your budget doesn’t change with the inflating prices. Say you allocated $400 for groceries. Before, that was enough for household items and food.
Now, you’d have to spend about $500 to buy the same amount of items. The first step you need to take is to find out what areas of your budget have been most affected by inflation. Compare your expenses from three months ago to your expenses now. Perhaps some categories like rent and subscriptions are the same. Others may have gone up. You need to know the numbers.
Look Where You Can Save
Now that you know exactly where you are overspending and by how much, you can think of ways to save. Let’s say you’re overspending on groceries by $200. Brainstorm ways you can lower the cost. For example, make a meal plan with cheaper ingredients. Substitute meat with beans, tofu, or vegetables. Think of this inflation and budgeting challenge as a chance to make creative meals!
Look What Expenses You Can Cut Completely
When it comes to inflation and budgeting, this includes cutting unnecessary expenses. Now is the time to start canceling subscriptions and using the free versions instead. You can even decide to start eating at home instead of dining out with friends. That will allow you to use your money for what really matters, like rent or food, and not stress over those times when you don’t have enough.
Think Of Ways To Earn Extra Money
Inflation and budgeting drive home the fact that nowadays, you can’t really have just one source of income. Companies are not going to increase salaries just because the cost of living has gone up — in fact, a lot of them are reducing salaries in order to stay afloat. So you need to find ways to make extra cash. Look for extra jobs you can do on weekends or in your free time.
Look at sites like Snagajob, CoolWorks, Upwork, Craigslist, and so on. Ask your boss for an extra shift, or offer to take on extra responsibilities for additional pay. You can also try selling stuff that you don’t need — which isn’t such a bad thing, because it may have been the motivation you needed to finally declutter. Just make sure what you sell is still in workable and decent condition.
Plan For Major Or Seasonal Expenses
It’s hard enough to stretch your money for this month, but you also have to think about how to save for those big seasonal or unexpected expenses. For example, spending typically goes up in the holidays because of gifts and entertaining — and with inflation this year, the spike is going to be even higher than what you are used to spending.
Calculate your budget and then divide how much you need to save in the next few months to have the money ready. For example, if you need an extra $1,000 during the holiday season, then you need to save $166 over a six-month period. If you can’t afford that, then you already know you have to lower your holiday budget and look for cheaper alternatives.
Your Budget Can’t Cover Emergency Expenses? Raise Cash With A Title Loan
When it rains, it pours. You’re already stretching your money to cover regular expenses, then an emergency happens. Whether it is a medical emergency or you have to do emergency traveling, your regular savings just might not cover these expenses. You need to raise money as soon as possible. When you do need quick money, an online title loan can help.
Title loans use your lien-free vehicle title as collateral for a lump sum of cash. Unlike bank loans, you can apply with us at Carolina Title Loans, Inc. even if you have a low credit score. You just have to fully own your vehicle with the title in your name and free of outstanding liens or judgments. If you get approved, you can qualify for anything between $601 to $15,000.
To start the process with us, just go to our website and fill out our online form. The form will be sent to our nearest auto title loan store and our representative will call you to explain the online title loan process. From there you either go to the store or arrange to meet with the representative in your desired location to continue the process and find out if you qualify for approval.
Get Your Budget Ready For The Inflation
Inflation can be a difficult thing to navigate. Using these tips about inflation and budgeting can help you get your budget ready for inflation so you can try to stay afloat. And if inflation has really affected your budget and left you not able to handle your emergency expenses, let an online title loan help. Just fill out our online form and let us help you get started.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.