Periodically, the economy will experience high inflation, and while there’s uncertainty in such climates, markets will eventually calm down. Rising prices put a strain on household budgets, and it can be stressful. But there are ways you can make your money go farther and be in the strongest financial position possible.
Develop a budget
Higher prices mean you may need to be more strategic about spending to stretch your income. Successful money management starts with a budget. Develop oneto identify where your money is going. What do you spend money on that you don’t need? Where have you been overspending? A budget helps you focus your spending on essential costs like housing, food, transportation, medical bills and other necessary expenses.
Take advantage of your bank’s financial management tools. Our Personal Financial Management(PFM) can help you get started and offers ways to track your spending and manage your budget within our Online and Mobile Bankingtools.
Cut down on everyday spending
Like most people, you still have to make ordinary purchases. To save money, consider buying fewer products or switching to a less expensive substitute. Look for better deals on what you need and try reducing items you already pay for. Here are some ideas to lower daily costs:
- Learn to cook—Skip the takeout and opt for a home cooked meal instead. Grocery stores often produce meals that are thriftier than most restaurant fare.
- Avoid luxury expenses—While it may be tempting to invest in fun activities or events, try opting for inexpensive alternatives like a game night with family and friends instead of going to a concert or show. Remember, it’s only temporary; the economy is cyclical and inflationary periods pass.
- Conserve on gas—Small changes in your driving can reduce gas costs significantly. Think about carpooling, consolidating trips and driving the speed limit. Your car will run more efficiently when your tires are properly inflated and reducing your acceleration and easing on the brakes also helps you save.
- Lower your energy bill—Remember to turn off lights when leaving a room and unplug electronics when not in use. Keeping your thermostat at a steady temperature rather than adjusting it frequently can also help lower your heating bill.
- Cancel unnecessary subscriptions or fees—These can add up and you may be throwing money away on subscription or streaming services each month. There are personal finance apps available that can help track down what subscriptions you’re using and help you cancel them.
Don’t let inflation stop you from investing
A period of high inflation may seem like the wrong time to invest, but it’s important to continue making regular contributions—no matter what’s happening in the economy. Investing helps you maintain and build your wealth over time. If you’re facing budget constraints, consider reducing your contributions for a short time until you can build them up again.
Your banker can be a helpful resource as you advance your financial goals. To speak with a finance professional, consider using our Banner Investment Services. Our Banner Investment team members can help protect your earnings and provide comprehensive investment strategies.
Discover what works for you
While no one can predict what economic events will unfold, the above suggestions can help you financially prepare for what’s around the corner. Whatever money tactics align with your lifestyle, start putting them to use today to stay ahead—in any economy.
FAQs
And when you say that you need to stretch your money or stretch every dollar, it means that you are going to budget your money so that you don't spend too much of it.
How do you stretch your dollar? ›
Making Your Dollar Last Longer
- Make Meals at Home. Cooking at home provides more filling meals as well as a greater quantity of food than just going out every night. ...
- Buy Generic Products. ...
- Consider Kicking A Habit. ...
- Use Your Student Discount. ...
- Use Inexpensive Transportation. ...
- Comparison Shop for Items You Want to Buy.
Cut down on everyday spending
- Learn to cook—Skip the takeout and opt for a home cooked meal instead. ...
- Avoid luxury expenses—While it may be tempting to invest in fun activities or events, try opting for inexpensive alternatives like a game night with family and friends instead of going to a concert or show.
Best Places to Visit Where the Dollar Is Strong
- South Africa. South Africa/South African Rand. ...
- South Korea. South Korea/South Korean Won. ...
- Japan. Japan/Japanese Yen. ...
- Argentina. Argentina/Argentine Peso. ...
- Hungary. Hungary/Hungarian Forint. ...
- Chile. Chile/Chilean Peso. ...
- Colombia. Colombia/Colombian Peso. ...
- Vietnam. Vietnam/Vietnamese Dong.
A stretch budget is a budget based on sales and marketing forecasts higher than estimates. They aren't used to estimate expenses. Expenses are estimated at the budget target. Stretch budgets are often complex and subjective.
How to survive until payday? ›
Tip 1 – Budget, budget, budget
Making a list of your essential costs, such as bills, groceries and fuel, then subtracting it from your income will offer you a rough disposable income – this is your money to keep aside. You could then divide this by however many weeks you have until payday.
What do I do if the dollar collapses? ›
What to Own When the Dollar Collapses. Historically, tangible assets like gold and real estate have been sought after as they tend to retain intrinsic value. Investing in commodities such as precious metals, oil, and agricultural products is also considered a smart choice.
How to afford life right now? ›
Use the 50/30/20 rule.
The benefit of this budget method is its simplicity. You take your after tax income and divide it into three categories—50% to needs 30% to wants, and 20% to long-term savings. Put an emphasis on achieving your independence and reaching your long-term goals by using the 50/30/20 rule.
How can I get extra money on my paycheck? ›
Tips To Get More Out Of Your Paycheck
- Take a look at your W-4. Have you even thought about it since you started working? ...
- Participate in flexible spending accounts (FSAs). ...
- Look into a commuter benefits plan. ...
- Move your money around. ...
- Participate in your company's 401(k) plan.
7 Steps to Stop Living Paycheck to Paycheck
- Start by Creating a Budget. If you don't already have a budget, now is the perfect time to create one! ...
- Cut Expenses and Increase Income. ...
- Build an Emergency Fund. ...
- Stop Accruing Debt. ...
- Open a High-Yield Savings Account. ...
- Join a Credit Union. ...
- Use Free Financial Wellness Resources.
If you're trying to stretch dollars, bypass the aisle with soda, beer, juice and especially bottled water. You can save enough right here to make two or three meals. Take inventory. Perfectly good food sits in a freezer or pantry for weeks, sometimes months, without notice.
What should I do with cash right now? ›
Consider putting it in a high yield savings or money market account, which typically earn more interest than a traditional savings account. Having an emergency fund means that there's a supply of cash at the ready, so you don't have to use a credit card or tap your retirement fund if you encounter an unexpected event.
Where should you put your money during inflation? ›
Several asset classes perform well in inflationary environments. Tangible assets, like real estate and commodities, have historically been seen as inflation hedges. Some specialized securities can maintain a portfolio's buying power, including certain sector stocks, inflation-indexed bonds, and securitized debt.
What does it mean when a currency is tied to the dollar? ›
Currency pegging is when a country or central bank aligns its currency to the value of another asset by artificially increasing or decreasing the value, rather than allowing it to trade freely on the open market.
What does financially stretched mean? ›
"be a financial stretch" is a perfectly correct and usable phrase in written English. It is generally used to describe a situation where a certain financial expenditure may be difficult or challenging to afford. For example, "Buying a new car would be a financial stretch for me at this time.". exact ( 3 )
What does it mean when the dollar raises? ›
When the dollar strengthens against other currencies, it means more capital is flowing into the U.S. than the other way around. Higher interest rates for longer in the U.S. is likely providing the dollar with a boost.
