6 Tips For Overcoming High Inflation Costs

May 10, 2022 | Daniel Dewitt

tips for overcoming high inflation

 

With inflation at a 40-year high, you’ve likely felt the pinch every day. Consumer prices on everything from bread, milk, and eggs to a new car have sharply risen. Inflation has a trickle-down effect: spending more on most goods and services may lead to difficulty covering rent and bills.

But even as inflation continues, consumers do have the power to follow strategic financial paths that combat high inflation costs. And the good thing is it isn’t too hard to combat these costs. Here are six of the best tips to get by financially during a period of high inflation.

6 Helpful Tips To Combat High Inflation Costs

1. Practice Your Negotiation Skills

You aren’t going to be able to change the price of a dozen eggs on your own, but a period of high inflation is a great time to work on lowering the prices of other services you do have a chance to change. Recurring costs that are typically negotiable include cell phone plans, insurance costs, streaming services, gym memberships, and your credit card’s APR.

And negotiating these types of expenses isn’t just a shot in the dark or a waste of time either. Studies have consistently shown that those who reach out to discuss lowering some of their everyday expenses are usually successful — and every bit helps during a period of high inflation.

2. Cut Spending

Being a frugal spender always has its benefits, but especially so during a time when consumer prices have risen a whopping 7%. If you’re struggling to get by, try a complete spending freeze during this time, cutting all spending that isn’t just non-essential, but completely frivolous.

That means continuing to address expenses such as your rent and utilities but nixing spending on things like dining out with friends. The trick is to start slow. Maybe try a week of not spending money on non-essentials, then go up from there to committing to a month of a spending freeze.

3. Make Strategic Investments

Periods of high inflation can also mean making profitable investments if you have the means. Safe investments include stocks in companies that can increase the prices of their products naturally during inflation, such as grains, oil, and other commodity resources. Real estate investments are desirable as well, especially homes you can hold on to for a few years before flipping or selling.

4. Readjust Your Mortgage

If you already own a home, it’s likely your biggest expense. One silver lining of high inflation is that it’s usually accompanied by generally broad low-interest rates. That means you may be able to save a significant amount on your mortgage payments by refinancing.

Look at your income and credit score and predict what you may qualify for using a mortgage refinancing tool. If you think you can benefit greatly from refinancing your mortgage, then you should definitely go for it. This is especially true if you plan to stay in your home for a long time.

 

high inflation costs

 

5. Rethink Your Energy Consumption

Energy costs usually increase during inflation, such as those related to electricity, natural gas, and coal. Companies use energy to both transport and produce goods, leading to increased prices for certain goods. While you can’t control everything, what you can control is your own energy consumption.

Look for ways around your home to lower energy use, such as using lightbulbs that are more energy-efficient, having your HVAC system serviced to run more effectively, and adjusting your thermostat several degrees higher during hot months and lower during colder months.

It also helps your energy consumption to unplug appliances and other electronics when you are not using them. And if you must drive your own vehicle, consider carpooling with colleagues whenever you can. If you don’t have to drive your own vehicle, consider using public transportation or biking.

6. Get Help With A Registration Loan

Financial emergencies can impact you at any time, but they hit particularly hard during high inflation. If you are facing such emergencies as an unexpected hospital bill, a vital home repair, or last-minute expensive travel, a registration loan is an option to address a financial issue quickly.

With a quick registration loan, your vehicle’s registration acts as collateral for a short-term loan of up to $900. It can take as little as 30 minutes to qualify for a registration loan at Fast Auto Loans, Inc. and you don’t even need to have a vehicle inspection to get through our process.

The best part is the process is easy and quick. All you have to do is fill out the short registration loan form on our homepage and a representative from our Arizona registration loan store location nearest you will give you a call and guide you through the rest of the loan process.

Once you are off the phone, you can head over, where we will assess your information – which will include checking your credit. We know that addressing a financial emergency as quickly as possible is a priority, so we will tell you quickly if we are able to approve you. And if you are approved, you can get the cash you need the same day or the next bank business day.

Work Your Way Through High Inflation Today

Periods of high inflation can be distressing for consumers. But with the help of the following strategic approaches, you can work through high inflation and keep your finances safe. And remember, if you are impacted by a financial emergency, a registration loan may also help. Fill out the online form to get the assistance you need.

 

Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.

 

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