If you are anything like my family, you are feeling the effects of inflation everywhere you turn. Anywhere from the grocery bill to the electric bill, middle and lower class seem to be hurting. How is one to sustain this massive increase when being in the middle class doesn’t allow you to save monthly?
InvestigateTV – New Estimates from NerdWallet project that, due to inflation, the average household would have to spend an extra $11,500 this year in order to maintain the same standard of living as previous years.
Elizabeth Renter from NerdWallet explained that groceries would cost around $100 more per month and utilities an extra $70 monthly.
Renter offered a few tips for holding down increased costs:
Make simple changes to reduce spending: something as simple as switching to generic products could make a big difference.
Prepare for higher interest rates: put off big purchases if possible until interest rates come back down.
Continue to put money away in an emergency fund: those extra dollars may come in handy if inflation persists.
If you can’t put more money into emergency savings and these rising prices are putting you over the edge, one option for assistance is visiting 211.org or call 211 to get in touch with community resources in your area.
I just won’t pay attention to my finances.
The worst thing you can do is deny the reality of your financial situation. Many people avoid looking at their bank accounts and credit card statements out of fear. This is a disservice, though, as you can’t tackle your financial situation or properly budget if you don’t know how you’re faring with your money.
There are additional risks associated with not checking your statements regularly. For example, you could be charged for expenses you didn’t incur, letting your accounts remain compromised without your knowledge.
Reviewing your credit card statements can help you see if you’re spending more than you earn, as can reviewing your checking account balance to make sure all of your paychecks are deposited properly and that you’re remaining in the black. Checking up on your statements can also help you adjust your budget to be more realistic to your expenses.
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