Many people are seeing changes in their spending power with continued inflation and rising interest rates.
Paying more for food, gas, utilities and a variety of other goods and services affects all of us. In addition, consumer debt has never been more costly. With a little planning and intention, it is possible to prepare and manage household budgets to smooth out a potentially bumpy ride ahead.
1. Start with Priorities
One of the best ways to cope with inflation is to take the time to prioritize monthly spending. A spending plan helps to ensure that what you spend matches what you make each month as prices rise. For instance, if you set aside a specific dollar amount for monthly gas purchases, you can juggle other expenses as they come up by sticking to spending limits. Knowing spending priorities can also help reduce the potential of adding to credit card balances.
To get started, check out GreenPath's Aligning Priorities worksheet. With the input of our counselors and educators, a specially designed guide aims to give a greater sense of ease and control when making choices how you will spend the money you have.
2. Set And Stick To A Shopping List
Once you know what you have to spend and have built a simple spending plan that makes sense for you, take some time to list out your purchases.
Using a shopping list can be the most powerful way to manage finances especially in the face of rising prices. Take inventory of what you already have specific to products with high in prices and make a list of what
you need. If possible, plan your weekly meals and check to see if you have all the necessary ingredients. Keep informed about what products are anticipated to go higher in price over the upcoming weeks and months. Cross-reference your list with deals and sales.
3. Stay Flexible
Making your list sets you up to stick to it –but stay flexible. You might have to go to a few stores for the best sales, coupons and specials to see if you can win a few extra savings points, especially on products that are low in inventory.
Be flexible when it comes to timing your purchases. Do you really need that item right now? Wait for something to go on sale to buy it.
This information is brought to you by our partners at GreenPath Financial Wellness