Tips for Navigating Rising Inflation

Knowledge Center

Tips for Navigating Rising Inflation

Tips for Navigating Rising Inflation

Inflation refers to a broad rise in the prices of goods and services across the economy over time, eroding purchasing power for both consumers and businesses. In other words, your dollar will not go as far today as it did yesterday. Since the start of the COVID-19 pandemic, the U.S. has been grappling with a perfect storm of economic factors. The Federal Reserve System has flooded the market with cash to help offset the detrimental effects of a global virus and global production has begun to slow down, causing an inevitable decrease in supply. What happens with this surplus of cash and low supply of goods and services? Inflation. This can be a financially stressful time for many people, but we are here to provide helpful tips to make sure you know how to navigate through the rising inflation.

 

Evaluate Your Budget and Make Adjustments

It’s important to sit down and regularly evaluate your budget, especially during times when the economy is experiencing inflation. Looking over your finances may help you catch places where you can reduce your spending and save more money. If you’re currently paying down the balances on several loans, you may consider looking into debt consolidation loans or a balance transfer. You can combine multiple loans into one lump payment, often with a lower interest rate which can allow for more wiggle room in your budget. Take every opportunity you can to save money during this time.

 

Maintain an Emergency Fund

Life throws all types of curveballs your way, and inflation just happens to be one of them. You want to stay ahead and be prepared for the unexpected. Establishing an emergency fund requires you to allocate a percentage of your paycheck each pay period separate from money for everyday use or bills. This will ensure that you don’t use money set aside for other purpose in the event of an emergency. Setting aside an emergency fund is a great way to overcome any immediate financial challenges. Consider also saving a designated amount from any bonuses you earn, financial gifts you are given, or even your tax return to help build up your emergency cash fund. Opening an interest bearing account or certificate can help you put money away while earning interest on your overall balance. We offer a Super Saver certificate that is great for saving money to cover you in case of an emergency.

 

Maximize Loyalty and Reward Programs

In times like these when prices have skyrocketed, taking advantage of discounts can help you save money in several areas of spending. Check to see if your credit card company offers a rewards program. These programs can be helpful in improving your financial wellness. Money earned from cash back rewards can be used towards paying down your credit card balance or can even be added to your emergency cash fund for times of need. Some credit card reward programs also include discounts for using your credit card with certain retailers. Robins Financial offers the Scorecard® Rewards Program for our credit card users that offer perks such as travel points, cash back, and much more! Make the most of your credit card and use these reward programs to help you save money in times of inflation.

 

Talk to a Financial Advisor

Navigating your money when things are tight can be stressful and you may not feel like you know where to start. The good thing is, you don’t have to do it alone. Consider talking to a financial advisor to help guide you through this trying time. There are many resources available no matter where you are in your financial path.

 

Like many others, inflation may have you in a tight place with your finances. The good news is you don’t have to stay there. We are here to help with financial tips so you can keep control over your finances and navigate through times like these like a pro!

 

 

 

At Robins Financial Credit Union, our mission is to enhance the financial well-being of our members and community. We honor this commitment by providing educational content to help you make the most of your finances. Read our other blog articles to help you gain the financial knowledge you need to succeed.

 

Learn More Ways to Save