Pay Not Keeping Up With Inflation? Here Are 3 Things You Can Do To Fix That
(TargetLiberty.org) – Americans are paying more for almost everything in the wake of the inflation crisis. It reached a 40-year high in the spring of 2022 and has remained painfully bloated since then. Going into the fall, groceries cost 8% more than they did the prior year. Medical care, gas prices, clothing, vehicles, rent, mortgages, and nearly everything else has shot up.
Workers’ pay is not rising as quickly as the price of goods, either, putting families in a tight squeeze. According to a survey from Bankrate.com, 55% of people said their incomes are not keeping up with the increase in household expenses. Only 33% of people have said their pay has risen at a rate that has allowed them to stay ahead of the curve. Fortunately, there are at least three steps everyone can take to help mitigate the impact of the inflation crisis.
1. Reduce Unnecessary Spending
If someone is struggling amid the inflation crisis, it’s a good time to find areas to save money. That doesn’t mean families need to give up all of the extras they enjoy or stop living their lives, just eliminating a few unnecessary expenses can go a long way. For example, instead of canceling the Netflix account, reduce the number of screens that are paid for every month. Sometimes cell phone carriers offer the service for free as part of their rewards program, as well.
Instead of going to Starbucks every day, maybe invest in an at-home espresso maker. It could easily pay for itself with the money saved.
2. Continue or Start Investing
Samuel Deane, the founder of the financial planning firm Deane Wealth Management, told TIME that investing extra cash is one of the ways to “keep up with or even outpace inflation.” Long-term investing can help families set themself up for financial comfort that is not impacted when the economy and markets go through ups and downs.
Deane recommends investors create a diverse portfolio; that way, if one industry takes a hit, they aren’t hurt. It’s very important the money used to do this does not come from the family’s emergency fund. Only extra bucks should be used.
3. Find a New Job
Obviously, this is sometimes easier said than done, but the best way to beat inflation is to bring in more money. That might mean asking for some overtime, or the extreme of looking for a better-paying primary job. Don’t quit your current job until you have a new job. It could also be as simple as picking up some extra side work as a delivery driver, virtual assistant, or freelancer. Every extra dollar counts.
Do you have any other tips for those who may be looking for ways to cope?
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