Your boss just called you with bad news.
No, you weren’t fired, but you just took a pay cut of about 10% – effective immediately. Not a good start to a Wednesday morning. But that’s exactly what’s happened to all of us since July of last year, whether we get the voice memo or not.
With the Consumer Price Index (CPI) hovering at 7.5% year-on-year, the French are clearly hurting when it comes to paying for everyday items. petrol price, grocery shopand much more, almost all of which are affected by the effects of inflation.
To put all of this into perspective, a person who earned and spent $50,000 last year now needs to earn $53,762.41 to maintain their standard of living. If you don’t get the year-end raise we were all hoping for last year, you’re probably feeling a bit bogged down, especially if things were tight to begin with.
To that end, we’ve compiled a list of fifteen different ways to restore your purchasing power and put an end to inflation.
1. Transfer your money into a high-yield savings account
Having plenty of idle money in low-interest accounts is the most effective way to fight inflation.
Cash you need to keep on hand, ie emergency fund Or cash for everyday expenses, put it into an online savings account (like the one at revolution) to regain as much purchasing power as possible.
You still lose out on inflation, but the goal here is to regain as much buying power as possible.
2. Get a cashback card
If you are not in the market for a new car or new homeConsider opening a new line of credit.
Responsible cardholders can take advantage of generous new card offers, many of which have solid cash-back rates on gas, groceries and travel.
Market averages between 1% and 5% of Cashback In nearly every category imaginable, it’s an easy one Earn passive income Forever which helps offset prolonged inflation.
3. Take advantage of bank rewards
Higher interest rates are not the only way consumers can take advantage of banks’ willingness To acquire new customers.
There is a good chance that several hundred very free Euros will be waiting for you at one of the many traditional banking institutions.
Not everyone has that kind of cash on hand, but if so and earning 0.06% in your traditional institution, this is an easy way to earn a few hundred dollars and take advantage of the lucrative deposit bonuses.
4. Use Igraal rewards
Most people are familiar with credit cards with cash back, which is great (as long as you pay off your balance each month). But what most people don’t know is that there are ways to earn cash, even beyond your credit card points.
With an app like seductionYou can easily add another 0.5-10%+ discount across many online stores.
So, let’s say you shop online and earn 1.5% cash back with your credit card. Igraal is offering you 2% off a site, and you now earn 3.5% on that purchase.
5. Plan your purchases
The only thing losing more to inflation than holding savings in low-yield accounts is spending money on frivolous things you didn’t need in the first place.
Planning out purchases before you go to the store helps you stay on track, and something as simple as sticking to a written list can help you stay accountable. Only buy what you need.
Stick to the budget And keeping track of your expenses are two more proven tactics to keep window store temptation at bay.
6. Cook at home
The cost of food has skyrocketed over the past year, and those costs have been passed on to the consumer (and even more) by restaurants. Perhaps easier said than done, cooking at home can be a game-changer when it comes to saving money on food.
One of the best ways to get started cooking at home is planning your meals in advance, a few days at a time. If that thought sends shivers up your spine, remember that you can have “recurring” meals that you prepare in bulk beforehand; You don’t have to cook one meal from scratch three times a day.
7. Buy in bulk
whether Money is tightThe last thing you want to do is buy in bulk, but in many cases, it’s totally worth it – especially when it comes to food.
For example, buying a package of 2 chicken fillets might cost $8, but if you buy a large package of 6 fillets, you can probably get them for $12 or less. It may not seem like much, but saving 30% more on the foods you know you’ll eat will go a long way toward lowering your monthly food budget.
The trick to buying in bulk, if you’re new to it, is to go from a 2-3 day supply to a 1-2 week supply. You’ll realize the benefits faster and be more useful than buying a 96-pack of toilet paper.
8. Minimize food delivery
Food delivery has boomed during the pandemic, and for many of us, the convenience factor made it hard to give up once the world started to return to normal.
If you are familiar with Deliveroo (or any other delivery service you use), reduce these expenses An easy way to make room for more and other essential items in your budget.
9. Going in general
Brand loyalty in personal finance is like dying with a thousand paper cuts.
A recent study showed that consumers spend on average 18% more on products from brands they are loyal to than on similar products produced by other manufacturers.
A good way to make the effects of 7.5% inflation more painful is to pay close to 20% more for these products.
10. Diversify your portfolio
discussions about recession Rising inflation has raised concerns among many about the state of their investment portfolios. But diverting money to liquidity or withdrawing entirely from the markets can do more harm than good.
Instead, experts suggest using panic periods to ensure your money is always invested in a safe group of investments. A high percentage of cash will maximize inflation losses, and a very high percentage of equity can cause more pain.
Talk to a financial consultant Trust and ask them to show you how to invest your portfolio to protect you from prolonged periods of inflation.
11. Negotiate your bills or cut less used subscriptions
Inflation aside, it’s a good idea to get in the habit of doing this once or twice a year. We’ve all had that free trial we forgot to cancel or that subscription we’ve paid too much for too long.
Also, if you and your spouse both have your own Amazon Prime subscription, be sure to bundle them into one.
12. Gas and grocery rewards apps
While general-purpose cashback apps are great for saving money on everyday purchases, it’s possible to save even more with category-specific apps.
Cheap gas apps like Fuel Flash or Gasoline & Co make it easy to find the cheapest gas stations around you.
Likewise, cashback apps like Fabolius Savings of up to $200 per month for active users, according to a company spokesperson.
13. Dealing with variable rate debt
When a central bank tries to fight inflation by raising interest rates, it means that many credit products will have higher interest rates.
For example, if you had debt on a credit card that previously paid interest at 20% per annum, the interest rate on that same card is likely to have gone up to 25% or more. This means that your money is being spent on interest payments more than before.
The best time to get serious about this can seem difficult Pay off your debts, especially those with higher interest rates, now. There are many ways to do this, but one of the smartest choices is to prioritize your high-interest debt.
14. Review of inflation-adjusted investments
Inflation-linked (OII) bonds Commitments that help protect you from inflation. They pay interest twice a year at a fixed rate that is adjusted for current inflation.
When the OII matures, you receive the adjusted capital or the initial principal, whichever is greater.
- Duration : 5, 10 or 30 years old
- Minimum purchase: 100 euros.
- Increase investment: multiples of 100 euros.
- Emission method: electronic
15. Don’t panic (and don’t be too aggressive with high-risk investments)
Social media is filled with stories of people (often younger than you) who got rich with the latest code Cryptocurrency or the last string NFT.
While some of these stories are true, there is no shortage of fake hype driven by people who want nothing more than to separate you from your money. If you have a little money, this is not the time to waste it on buying a dog room or an animal picture.