10 Inflation Hacks Everyone Can Use
1) Mindful Spending – Create a list of things that are important to you and spend on them freely. Premium pet food, kids activities, or a backyard BBQ with friends can add lots of value to life. Then reduce or eliminate mindless expenses.
2) Potlucks – The cost of eating out at restaurants has skyrocketed. Increases in food prices, employee wages, taxes, and fees, has made it too expensive to eat out. Invite friends over and have everyone bring 1 item.
3) Transportation – For most of us this means driving your slightly older (and completely paid off) car a little longer. Determine if a new car is a want or a need. Consider the higher cost of insurance and maintenance in your decision as well.
4) Groceries – Buy in bulk at Costco, double stack paper & digital coupons, consider per unit pricing of different options, always buy what is on sale, and consider substitutes when possible. It’s possible to keep grocery costs low with a little planning.
5) Increase the market value of your labor – Your human capital, income from working, is your greatest asset. Increase your value by learning a new skill, earning new degrees or certifications, and leveraging opportunities and relationships in your professional networks.
6) Invest in assets that yield more than inflation – A low-cost diversified index fund of stocks is a great start. Over long periods of time, investing in stocks has proven to be a winning strategy in compounding wealth much faster than the rate of inflation.
7) Challenge your More Mentality – “Do I really need this?” The larger the purchase, the longer you should take to think about it. The pause between the initial dopamine rush of wanting it and actually entering your credit card info will make this decision more clear.
8) Ask for a raise at work – Demonstrate your value and confidently ask that you be compensated appropriately. Managers and business owners are aware that costs are rising, but they are not going to give you a higher salary unless you ask. If you are a valued employee, it will be much cheaper for them to give you a raise than to replace you.
9) Use the tools available to help – Tools like index funds, 401k’s, IRA’s, 529 College Savings Accounts, HSA Health Savings Accounts, and High Yield Savings Accounts are available to everyone. Do some research and learn how they can help you.
10) Start Now – Harness the value of positive compounding by making a small change today. That new habit will pay dividends in the form of increased wealth over time. The best way to beat inflation tomorrow is by starting today.
