Tips on how to save money and fight inflation
Introduction
The surge and rise in prices of goods and services in an economy are called inflation. The increment in price results in your currency buying fewer goods and services resulting in the decreasing purchasing power of your money.
As I am revising this article, the inflation rate in Canada and the U.S. is around 8% the highest in four decades.
I am going to write about what I have been doing to save money during this inflationary period.
I have spent more than 25 years in the financial services industry. I have lent money, managed money, traded money, and seen two recessions, the tech crash in 2000, 9/11, 2008, and now 2022. The COVID-19 crisis was an outlier or a Black Swan. The challenge with the COVID-19 crisis is that we had to quarantine ourselves, as countries around the world had been hit by a pandemic that was merciless, carcinogenic, and catholic. The knife was in the stomach, turned around and salt is being rubbed in the form of a shortage of many goods, disruption in supply chains, hoarding, and inflation.
I would strongly recommend that you create a budget and stick with it. Inflation kills your budget.
The future is uncertain and the times are scary. However, we will overcome it.
One question on your mind is whether you will come out ahead financially at the end of this. Here is what I am doing to deal with inflation and save money.
Save on Car Insurance
It is easy to save if you own two cars. Debbie has a short drive to work. I am working from home. We will be driving the car once a week to get groceries. This month, I called the insurance agent and took one car off the insurance. Total savings is $125.
Save on Cell phone, cable, internet
As a loyal customer with a provider, you have to negotiate and it can save you money. I called my provider and negotiated better rates for the cell and internet. I switched to IPTV where I get 5,000 channels and only pay $15 a month. Total savings is $50.
Hair color for Debbie
Debbie used to go to a salon for coloring her hair. I learned how to color her hair. Total savings $125.
Cutting grass
I have a huge lot and for the last couple of years had a professional company cut my grass three times a month. I am going to cut the grass this year. Total savings $100.
Save by Working from home
I requested to work from home. It saves me two hours a day stuck in traffic. I am saving $160 in gas and $50 in parking. Total savings $210.
Cooking at home
I am cooking all my meals at home. I used to eat out pretty often. No need for Uber Eats or Door Dash. Total savings $150.
Cut the non-essentials
Inflation could last for a while. No one knows if another wave of COVID-10 will come. So, the more money you save, it can sustain you.
Refinance, consolidate and lower your rates
If you have many loans, lines of credit, and credit cards, I recommend you refinance your mortgage and consolidate. This way you will have only one payment. Call your banker and lower your interest rate. I recommend Ashish Lala. He is the best in the business. Continue to invest in conservative stocks that will give you a dividend and ask for a raise.
I hope some of these tips will help you to save money during these inflationary times.
Photo Credits: Tonik Richard Burlton Andraz Lazic Andre Gaulin Diogo Brandao Max Ilienerwise Becca Tapert Anastase Maragos Sharon McCutcheon
very helpful advise! we stopped eating out as well, it saves tons of money for us. also we noticed we spend way less money on food as we no longer can just go and grab what we need.
Great point about the car insurance. I will try to get that changed. Thanks.
Great tips Jerry this is what we do too. We mostly do everything ourselves and that’s how we’re able to travel.
I hadn’t considered having my insurance or phone bill adjusted, but will be working on it immediately. Thank you for the excellent tips on saving during this time.
Well you’re way ahead of me. I already played with my insurance premium to reduce that by $40 a month (I considered it a win, as it’s a policy for a single car). I also contacted some companies about reducing my debt, canceled my gym membership (couldn’t use it anyway for the time being) and am working at home until May 1st (hopefully not later). The rest of these are stellar points that we should all be implementing.
Thank you for the helpful tips. It’s worthwhile to think creatively!
Some amazing tips that i will be taking on board. Thankyou.
Nice Post , Like it
Great ideas for saving money during the coronavirus mess! We’re saving money on entertainment because obviously we aren’t going anywhere. But I’ve been spending more money on Amazon buying books so I guess it balances out.
Thanks for the helpful tips. We cut our own grass and save a ton of money.
Great tips and thanks for sharing!
During COVID-19 I’ve been working from home so I’ve also saved a huge amount of money on gas and car insurance. Our insurance company has been giving us an automatic rebate every month. We are not eating out at restaurants, but I’m making healthier meals at home so I might be spending more on food. It’s good to take a look at where the money goes each month to be able to identify potential savings.
Great tips on saving money, which is especially important right now with our unstable economy. I recently called my cell phone company and just with that quick and easy call saved money on my monthly plan and was able to get more data! Thanks for your tips!
great ideas
“Love all the ideas you shared on how to battle inflation but to be honest these are great tips on saving money overall. I love how you 1st recommend that people start evaluating their current finances and look for ways to save. Whether that is finding cheaper insurance, better rates on current subscriptions, or just not spending money by dining out. With a baby on the way we are looking for ways to save better so that we can offer any extra to our soon-to-be child. So these are great ideas. Eric Gamble