How to survive inflation.
With inflation in the United States climbing at the highest rate in nearly 40 years, now is the time as a smart saver to take steps to make your money last. But before we talk about how to survive inflation, it’s important to know what inflation is. Inflation measures rising prices over time, and economists determine inflation by comparing price indexes that group and track the cost of select items. Here are four ways to help you stay ahead of the inflation bite.
Review your smart saving budget.
Creating a budget can be time-consuming, but it is a vital tool in helping protect you from inflation. The first step is to gather all your financial paperwork to take a close look at your monthly spending, investments, retirement savings, and income statements. From there, you can adjust your spending and investments to offset the effects of inflation.
Build an emergency fund.
Financial experts recommend having at least six months of emergency funds available. With prices rising, having funds for an unexpected event such as a major car repair or a job loss is critical. Popular Bank has a wide range of personal banking products and services to help you meet your financial goals.
Carefully consider large purchases.
Several purchases have been affected by Covid – as well as inflation. Home renovations are high up on the list due to supply-chain backlogs on lumber, steel, copper, and gypsum items. If you can delay a kitchen or bathroom renovation, it may be a good time to wait out the higher materials prices.
Another purchase to think about is a new or used vehicle. A manufacturing shortage of microchips — the “brains” of your car — has created a lack of new and used car inventory at dealerships. Of course, we all need transportation, and if you require a car, purchase one. Just know you may be paying a little bit more.
If you’re looking to buy a home, renovate, or buy a new car, Popular Bank can help with several personal banking solutions to help you navigate how to survive inflation, including personal financing options.
Ask for a raise.
Companies are back to business, want to retain their employees, and are offering raises. And it doesn’t hurt to ask for a raise to protect yourself from inflation. Outline to your boss your achievements over the past year with metrics if you have them (i.e., increased sales X% or gained five new clients that increased revenues). If your higher-ups can’t give you a salary raise, consider asking for non-monetary compensation such as a flexible schedule, more vacation time, or an enhanced title.
Protecting yourself from inflation takes a smart savings plan. Now that you have a better understanding of how to survive inflation, contact us or visit a branch to find out how our products and services can help you navigate the rising cost of living.