10 Simple Ways to Fight Inflation
Inflation is hitting everyone’s wallet these days, making it crucial to find creative ways to stretch your hard-earned dollars. From reviewing your budget and slashing unnecessary subscriptions to leveraging side hustles and cash-back apps, there are plenty of practical steps you can take to fight rising costs.
Cooking at home, for example, can significantly cut expenses compared to eating out—even fast food prices have surged. By optimizing spending, finding cost-effective swaps, and strategically using cash-back rewards, you can keep more money in your pocket despite the challenges inflation brings. Here’s how to get started.
>> Click here to watch on YouTube: 10 Simple Ways To Beat Inflation (21 minutes)
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1. Review Your Budget
Review and Cut Subscriptions
- Action: Go through your monthly subscriptions and cancel any you no longer use or need.
- Benefit: Frees up money that can be redirected towards more important financial goals.
- Resources: RocketMoney helps to cancel unwanted subscriptions hassle-free.
Start by reviewing your budget to gain a clear understanding of where your money is going each month. Begin with a detailed overview of all expenses, including necessary categories like housing and utilities, as well as discretionary spending. Next, take a close look at your subscriptions—many people have recurring charges for services they no longer use or need. Tools like Rocket Money can help identify and cancel unused subscriptions, making it easier to trim unnecessary expenses.
To gain better insights, track how much you’re spending in each category, from groceries to entertainment. This process may reveal opportunities to cut back or reallocate funds. Be mindful of impulse purchases, as these can quickly derail a budget. Using a spreadsheet to log expenses and categorize spending can provide a visual snapshot of your financial habits and help you set realistic goals to save and combat inflation.
Track Your Spending
- Action: Use a spending tracker app to log every purchase.
- Benefit: Helps you become more aware of your spending habits and identify unnecessary expenses you can eliminate.
- Resources: Check out my budget templates or apps like RocketMoney, Tiller, or Empower.
2. Use a High-Yield Savings Account
Opening a High-Yield Savings Account (HYSA) is a smart way to make your money work harder for you, especially in times of high inflation. Unlike traditional savings accounts, HYSAs offer significantly higher interest rates, helping you earn more on your balance and offsetting the rising costs of goods and services.
One excellent option to consider is CIT Bank’s High-Yield Savings Account. With competitive interest rates and no hidden fees, CIT Bank allows your savings to grow faster, maximizing your returns. It’s easy to set up, and the online interface makes managing your money simple and straightforward. By placing your emergency fund or savings goals in a CIT Bank HYSA, you can effortlessly boost your financial security while maintaining quick access to your funds when you need them.
General Savings
For general savings, an HYSA can help your money grow faster, turning small contributions into a more substantial sum over time. Instead of letting your savings sit in an account earning minimal interest, a high-yield account leverages compound interest to boost your balance. Whether you’re saving for a vacation, a major purchase, or building a financial cushion, the higher interest rates of an HYSA accelerate your progress toward these goals without requiring extra effort on your part.
Sinking Funds
Sinking funds are a way to save incrementally for specific, anticipated expenses such as holidays, car repairs, or annual insurance premiums. An HYSA is a great place to park these funds because it keeps your money separate from everyday spending while earning interest. By contributing regularly and using an HYSA, your money will continue to grow while you save, lessening the overall financial burden when it’s time to cover these planned costs.
Emergency Fund
An emergency fund is crucial for covering unexpected expenses like medical bills, home repairs, or sudden job loss. Keeping your emergency savings in a high-yield savings account allows your money to remain liquid—meaning you can access it quickly when needed—while still earning interest. This means your safety net isn’t just sitting idle but is actively growing, helping you stay ahead of inflation. An HYSA ensures that your emergency fund maintains its value and grows over time, providing you with a more robust financial cushion for life’s unexpected twists and turns.
By using a High-Yield Savings Account for general savings, sinking funds, and your emergency fund, you maximize your earning potential while maintaining easy access to your money, helping you stay prepared and financially empowered.
Best place to keep your emergency fund to earn interest👇
3. Start A Side Hustles
Starting a side hustle can significantly increase your financial stability, offering flexibility and additional income streams. There are numerous side hustles you can tap into that capitalize on skills you already have. For instance, becoming a virtual assistant allows you to support businesses by managing tasks such as scheduling, email correspondence, or social media management. If you have a knack for organization or specialized knowledge, offering online coaching or consulting can help others reach their goals while boosting your earnings.
Freelance work is another excellent option, whether it’s writing, graphic design, or website management—whatever aligns with your strengths and interests. You can also dive into content creation, like blogging or producing digital products such as templates, printables, or guides, to sell online. These options not only let you make money on your own terms but also allow you to build a business that grows over time. With dedication and a strategic approach, your side hustle can evolve into a consistent and rewarding income stream.
4. Pay Off High Interest Debt
Paying off high-interest debt should be a top priority when working towards financial stability, as it can quickly drain your resources due to mounting interest charges. High-interest debt, such as credit card balances, often comes with double-digit interest rates that make it difficult to make meaningful progress with minimum payments alone. By aggressively tackling these debts, you reduce the amount of money lost to interest and free up more funds for savings, investments, or other financial goals.
To start, consider using strategies like the debt snowball or debt avalanche methods. The debt snowball focuses on paying off the smallest debts first to build momentum and confidence, while the debt avalanche targets the debts with the highest interest rates to minimize overall costs. Additionally, consolidating debt with a lower-interest personal loan or a balance transfer card can help reduce your interest burden and make repayment more manageable.
Prioritizing the payoff of high-interest debt empowers you to regain control of your finances, improve your credit score, and ultimately achieve greater financial freedom.
>> Watch: The FOUR Best Ways To Pay Off Debt
Look For Cheaper Options
Finding cheaper alternatives for everyday expenses can significantly ease the pressure of rising costs. Start by evaluating recurring expenses such as your cell phone plan. Switching to a more affordable provider, like Mint Mobile, can save you hundreds of dollars a year without sacrificing quality service. Similarly, it’s worth calling around and comparing quotes for your insurance policies—auto, home, or health insurance. In many cases, you can secure the same coverage for a lower premium simply by shopping around or negotiating with your provider.
To help reduce costs even further, check out this article with a script to your lower bills, which outlines what to say when speaking with service providers about lowering your rates. This proactive approach can lead to surprising savings on utilities, cable, and other monthly bills.
Finding cheaper alternatives to groceries also makes a big difference. For example, opting for frozen berries over fresh ones often saves money while still providing the same nutritional benefits and convenience. Small swaps like this can add up over time, creating meaningful savings that leave more money in your pocket. By consistently looking for and switching to cheaper options, you can maintain your quality of life while keeping your budget in check.
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>> Read: How To Lower Your Bills: An Easy Script To Negotiate On The Phone
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Turn Your Hobbies Into Side Hustles
There are endless possibilities for turning a profit with your passion. However, some interests have more potential than others. Here’s a sampling of the most popular hobbies to hustle on the side, especially online.
Start a Side Hustle
- Action: Explore freelance work, gig economy jobs, or selling items online.
- Benefit: Generates additional income that can be used to pay off debt, build savings, or invest.
- Resources: Download my free Ultimate Side Hustle Guide to help you figure out what side hustle is best for you.
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7. Use Cash-Back Apps
Using cash-back apps is a simple and effective way to earn money on everyday purchases you’re already making, like gas and groceries. Apps such as Ibotta, Rakuten, and Fetch Rewards provide cash back or rewards points when you shop through their platforms or upload receipts. Since gas and groceries are unavoidable expenses, leveraging these tools ensures you’re getting a little extra value every time you shop.
If you’re filling up your tank, cash-back apps like Upside can provide savings at the pump, while grocery apps allow you to earn rewards on items you would have bought anyway. Over time, these cash-back rewards can accumulate into meaningful savings or even cash payouts, making it well worth the small effort it takes to use the apps. Since you’re already spending money on these necessities, why not take advantage and put some of that cash back into your pocket?
- UPSIDE: Earn $0.20 per gallon cash back when you fill up your gas tank! New restaurants are also being added to the app every month as well!
- RAKUTEN: Earn $30 just for shopping with my referral link and making a qualified purchase within 90 days of joining and total $30.
- SHOPKICK: Earn cash back just by walking into stores, scanning products, and on everyday purchases. >> Use code FREEDOM5 for $5 in kicks!
- RECEIPT HOG: Scan your receipts to ANYWHERE, get bonuses that turn into coins for cash redeemed in gift cards or PayPal.
- FETCH REWARDS: Get free gift cards simply for shopping, snapping all your receipts and playing games on your phone!
- IBOTTA: Turn your grocery receipt into gift cards. Matching your purchases with offers within the app automatically to give you cash back after your purchase!
8. Shop Second Hand
Shopping second-hand is an excellent way to find quality items at a fraction of the cost, helping you stretch your budget further. Thrift stores like Goodwill, consignment shops, and online marketplaces such as Facebook Marketplace offer a treasure trove of gently-used goods, from furniture to clothing and beyond. These options often allow you to score high-quality, name-brand items for significantly less than retail prices.
For example, I recently purchased a solid wood table for my daughter that retails for over $100. By shopping second-hand, I found a Pottery Barn table for just $40—an incredible deal for such a well-made piece. These savings aren’t just limited to furniture; you can find deals on everything from electronics to children’s toys, reducing the strain on your budget without compromising on quality.
Embracing second-hand shopping is not only economical but also environmentally friendly, as it reduces waste and extends the life cycle of products. With a bit of patience and creativity, you can uncover incredible bargains that meet your needs while leaving more money in your pocket.
9. Try A NO SPEND Week Or Month
Trying a no-spend week or month is a powerful way to reset your financial habits, cut down on unnecessary expenses, and boost your savings. The concept is simple: commit to spending money only on essentials such as groceries, utilities, and necessary bills, while avoiding discretionary purchases like dining out, shopping, or entertainment. This period of intentional spending can help you become more mindful of your spending triggers and identify areas where you can cut back permanently.
If committing to a full no-spend challenge feels overwhelming, you can tailor it to focus on specific categories. For example, you might try a “no-spend on eating out” challenge, cooking all your meals at home for the duration, or a “no-spend on clothing” challenge, which can help you appreciate and make better use of the wardrobe you already own. By narrowing down the no-spend focus, you maintain the spirit of mindful spending while targeting areas that impact your budget the most.
To make your no-spend challenge more effective, download the free printable tracker below. By logging each day that you stick to the challenge, you create a visual reminder of your progress and reinforce positive habits. The tracker can help keep you accountable and motivated, making it easier to complete the challenge and reflect on your spending habits at the end. A no-spend challenge—whether broad or category-specific—doesn’t have to feel restrictive. It can be an opportunity to get creative, find free ways to enjoy life, and gain greater control over your finances.
10. Always Compare Prices
Comparing prices is a crucial step in maximizing your savings, as what may appear to be a “great deal” at first glance could simply be a marketing tactic to catch your attention. Retailers often use flashy sales and discounts to make items seem like bargains, but they’re not always the best option. In many cases, store-brand products offer better value than the sale price of name-brand items while maintaining comparable quality. However, this isn’t always true, so a careful price comparison is essential to ensure you’re getting the best deal.
Take the time to check unit prices, compare different brands, and assess any promotions to determine the true value. This is especially important for grocery shopping, where prices can vary significantly between brands and stores. By being mindful of how sales are presented and taking a few extra moments to compare, you can avoid falling for marketing tricks and make purchases that align with your budget. Over time, this habit of price comparison can lead to substantial savings, making every dollar count.
Educate Yourself on Personal Finance
- Action: Read personal finance books, listen to podcasts, or take online courses.
- Benefit: Increases your financial literacy, empowering you to make informed decisions and improve your financial health.
Financial literacy is key to making informed decisions and improving your financial health. Dedicate time to educate yourself on personal finance by reading books, listening to podcasts, or taking online courses. There are numerous resources available that can provide valuable insights and practical advice on budgeting, saving, investing, and more.
As you increase your knowledge, you’ll become more confident in managing your finances and making decisions that align with your goals. Understanding the basics of personal finance can help you avoid common pitfalls, take advantage of opportunities, and ultimately achieve financial independence.
By implementing these simple steps, you can take significant strides towards bettering your financial situation. Start with one or two actions today, and gradually incorporate more to build a solid financial foundation for the future.
Reminder For Beating Inflation
Navigating rising costs and fighting inflation requires strategic thinking and mindful spending, but every small step you take can lead to significant savings over time. From reviewing your budget and exploring side hustles to finding cost-effective swaps and leveraging cash-back apps, the key is to stay proactive and resourceful. By making thoughtful choices—like cooking at home, shopping second-hand, and prioritizing paying down high-interest debt—you can regain control over your finances and better weather economic challenges.
Remember, every dollar saved and every financial habit refined brings you closer to greater stability and freedom. By combining these practical strategies, you can stretch your dollars further, maintain your financial goals, and build a stronger financial future for yourself and your family. Stay focused, stay flexible, and continue finding creative ways to maximize your resources. You’ve got this!
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