Give youself grace...
Before we get into how inflation has impacted my family’s budget I want to remind you to give yourself grace.
Times are REALLY tough right now, inflation is through the roof, and if you are struggling financially.
It’s okay, you WILL get through this.
Increased budget categories
First, if you are not on a written budget… get on a written budget!
Remember, budgets are NOT constricting but instead give you FREEDOM to be in control of your money, rather than your money in CONTROL OF YOU!
Whether you are an excel nerd (like myself) or prefer pen and paper, I’ve got you covered.
Next, re-evaluate your budget.
Right now, inflation is through the roof. Groceries and gas prices alone have sky-rocketed.
If you don’t re-evaluate your budget and keep it the same as it was last year, you will quickly be in the red.
Complete a spending analysis to see how much you are spending right now in each category for the last 3-6 months.
We have seen an increase in our homeowner’s insurance and electric bill. We even invested in impact windows for our home which is supposed to greatly reduce our electric bill but the cost of kWh has gone up so we aren’t seeing any savings which is really discouraging.
We own our home so our mortgage payment has not changed but I have friends that rent and have received letters on their front door saying that their rent will be increased $1,000 in 90 days. That breaks my heart and is so hard for so many people.
A year ago we were spending about $60 to $75 a week for my husband and I. We are now spending about $10 a week for just the two of us.
We also now have a baby and formula prices are crazy expensive now too. We buy Target brand formula and it costs about $20 a week but the name brand would cost us $42 a week.
Gas prices are at a record high but I think we are going to still see an increase coming, unfortunately.
My husband, Jayme’s, way that he unplugs is going for an hour drive up and down the beach and listening to a podcast.
Is he going to stop because of inflation?
No. This is something that he still does because it’s his self-care but we do see a huge hit in our budget.
One BIG way that we save money on gas is we use the app Upside (formerly GetUpside) which tells us the price of all the gas stations in our area to see the cheapest but it also gives us $0.20 cash-back per gallon!
We also saw a large increase in car prices.
My husband bought a Kia Stinger a couple of months ago and gone are the days when you can negotiate, walk away and they chase after you.
Not only were they the ones in control but also because of the car market, we had to pay over MSRP.
What can we do to help?
When money gets really tight we can only cut so much from the budget.
When that happens, it’s time to increase your income.
Side hustles are the best way to bring in extra income, and now there are countless ones that you can do from home, from becoming a virtual assistant to transcriber to phone customer service to freelance writing.
More ways to save!
- GetUpside: Earn 20 cents per gallon on gas cash back when you download the app and use code FIAB20.
- Fetch Rewards is a free grocery savings app that rewards you just for snapping pictures of your receipts. That’s it. Really. Free gift cards on groceries on thousands of products every day, no matter where you get your groceries. Just scan your receipts and get gift cards from retailers like Amazon, Target, Ulta, and Applebees. Use code QHKBH to earn 2,000 points ($2)!
- Ladder: Get a quick, free quote on term life insurance, affordable, online term life insurance. No exam! No waiting! No hassles!
- GoodRx: Free app that provides you savings of up to 80% on your prescriptions (even if you don’t have insurance). $5 sign up bonus!
- Rakuten: Get cash back on online purchases and automatic coupons and savings with their browser plugin… and remember, you have to make a $20 purchase to get your $20 for free!
- Blooom: FREE 401(k) or IRA analyzer, Let the experts take a peek at your retirement account. Get real advice on how it’s doing and how it could be performing better.
- Lively: A modern health savings account. Prepare for tomorrow by making smart decisions about finances and healthcare today. Lively HSAs are free for individuals and families, so you never have to worry about hidden costs.
- CIT Bank: BEST High-yield savings account, your bank shouldn’t be charging you money, instead, YOU should be making money off your money!
- Build Wealth by Investing in Index Funds Course: I’ve teamed up with my friend Jeremy from Personal Finance Club to teach you everything you need to know to invest in index funds! How to open an account, how much to invest, and how to choose an index fund. You’ll gain the knowledge and confidence to optimally invest and build wealth for decades.
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