Twelve Ways To Offset Inflation
With inflation up 7%, the impact is felt across the entire economy. However, if you read articles on how to offset inflation, they generally say things like, own stocks, real estate, or gold.
That’s great if you have money. However, 70% of American’s live paycheck to paycheck. They have little room to maneuver, and gold trading strategies or real estate hot spots are meaningless.
Here are practical ideas for the average family.
- Free money. Be debt free and get the full benefit of an employer’s 401k match.
- Get more training, certifications or college. Many programs are online and can retool your resume for a relatively low cost. Now might be the time to change careers or beef up your resume. Any in-demand training improves your earning power.
- Get a second job. No one is guaranteed a “living wage” by only working 40 hours per week. Some of the wealthiest American’s got that way by working multiple jobs early in their careers. Or, ask for more hours at your current job. Showing up one hour early and stay one hour later, will boost earning potential by 25% compared to the average work week. No one will ever look down upon you for seeking more work—especially when there is a worker shortage. You will gain more experience in the process, too.
- Swap out Starbucks for Folgers. The average ticket at a custom coffee house is north of $10. There are cheaper options. We buy Folgers or Maxwell House by the truck load. A $17 can produces 400 cups of coffee. That is less than a nickel a cup! We invest in the stock of Starbucks, we don’t shop there.
- Cut your housing costs. Get a roommate or two or three. Or, rent a room from someone. The thought that everyone needs to own a $400,000 house is ridiculous and backs you into a financial corner. Getting roommates can cut your portion of utilities, too.
- Dress for success, on a budget. Just like a car, the second an item of clothing is worn, it is “used.” I have no problem shopping for used clothing at Goodwill—especially in wealthy neighborhoods. Additionally, there can be bargains at stores like Ross or Marshall’s. Although you may pick through a lot to find a few gems, consider it a treasure hunt.
- Sleep on it. Whether considering a new watch, clothes or the latest tech, don’t make impulse purchases. Give yourself at least a week before pulling the trigger. This allows the initial excitement to wear off and determine if you still want it. Additionally, it is instructive to calculate how many hours you must work to purchase an item and then see if you still want it.
- Americans spend about 10% of their budget on food. How you pack and prepare has significant implications. Most days, I eat a bowl of cereal at home for lunch. A box of raisin bran costs $3 and, with milk, a serving costs less than fifty cents. I can also save by taking my lunch to work. This allows control of the budget and the quality of what you put in your body.
- Eating out. If we eat out, the ticket is routinely $25 per plate. It is easy to eat your way to the poorhouse. If you go out, ask for half your meal to be delivered in a “to go” box. Not only will you save on calories, you’ll have your next meal pre-prepped. There is no shame in leftovers.
- Efficient transportation. Before you buy a new car with a decade of payments, maintain your existing ride. You can also consider carpooling, public transit or riding your bike.
- Budget vacation. Go to a state or local park instead of busting the budget on a distant destination. On a beautiful spring day, there is little that beats a walk in the park with your dog. It will lower your blood pressure too.
- Stop smoking. Someone with a pack and a half a day habit will literally light $3,000 per year on fire. Additionally, you will inevitably incur higher health costs.
Like all habits, success comes from being consistent and intentional. Slow and steady wins the race.