It is safe to say we are all looking for ways to save money. As you read this article, I am sure you are aware of how expensive everything is these days, literally!
Prices of goods and services have skyrocketed, and these is because inflation is still at an all time high.
We are spending more to acquire less, while our income remains relatively unchanged. As a result, this has made it extremely difficult to save money.
To help with this problem let’s run through some helpful tips.
4 Best Ways To Save Money During Inflation
1. Create A Budget
With the increasing cost of goods and service, it is more important now than ever to create a budget.
A budget gives you a good grasp of your monthly income and expenses, to help you evaluate your lifestyle and manage your expenses.
When you do this, it is much easier to find creative ways cut down unnecessary expenses and allocate budget amounts you will take active steps to avoid exceeding.
It could be anything from reducing the amount of streaming services you pay for, switching to a cheaper and equally effective phone provider or buying a less expensive bottle of orange juice. This is all up to you and you can approach this in various unique ways. So grab a sheet of paper and get to budgeting!
To help with this process the Good Life Theory team is working our stream lined budget template, so you don’t have to deal with the hassle of creating a budget. Join our mailing list to be notified once the template goes life!
2. Start A Side Hustle
Given the rising prices of goods and services, starting a side hustle is an excellent way to save money during inflation.
You are basically increasing the amount of disposable income you have each month to match the rising cost of things.
A major plus is that a side hustle can be something you enjoy or are passionate about, which could be anything from starting a jewelry business, creating a clothing line, a podcast, blog or even writing on Fiverr or Medium.
Whatever you are passionate about find a way to monetize it!
3. Bulk Buy Groceries and Household Items
Research has found that shoppers who make bulk shopping purchases save more than shoppers who make individual purchases.
This is because when bulk shopping is done right, items are often cheaper per unit. However, it is important to note the items you should or should not bulk purchase.
You can bulk purchases household items such as toilet paper, beauty products, canned goods, but avoid bulk purchasing perishable items such as milk, eggs, cheese etc.
Bulk purchasing is a cost saving strategy that corporations and businesses have been utilizing for centuries why not incorporate this into your personal finances!
4. Save What You Can And Invest
Now that you have some ideas on how to reduce expenses and increase your monthly income, it is time to maximize your savings by opening a high yield savings account and an investment account.
In all economic environments “Cash is always King”, meaning it is important to maintain a level of liquidity in the event of emergencies. Technically, just always have money available to cover any emergency expenses.
The downside here is that in an inflationary environment the value of money erodes faster than they grow in your average savings account. However, you can give your savings a fighting chance by opening a high yield saving account.
A high yield savings account are accounts that pay interest rates higher than the national average of 0.42% APY by paying an average interest rate of 4% APY. Capital One 360 savings account is a high yield savings account I have been using since college and I absolutely love it!
Once you have your emergency expenses covered, you can also make the best use of your money by investing in a viable investment opportunity of your choice.
I typically recommend investing in ETFs as a beginner investor, because they offer instant diversification. ETFs are security investments that track index funds such as the S&P500 or the Dow Jones. If you would like us to share talk more about ETFs, comment ETF in the comment sections.
The investment platforms I have been using for years are Robinhood and Fidelity Investments. Both platforms are easy to use, and offer a ton of educational information. Use my Robinhood referral link to get up to $200 in free stocks.
To wrap this up, I am curious to hear how you have been able to save in this current economic environment. Share your thoughts down below!
