Simple Ways To Beat Inflation
If you feel financial pain every time you go shopping, it’s likely due to inflation. Too much of anything can be a problem, even with lots of cash being circulated in the market. Whenever the government prints too much money, those dollars flood the economy, causing our currency to lose value, meaning prices go up.
Peter Comisar points out that you can’t fight inflation, but you can survive and even thrive if you make the right choices whenever you go shopping. Here are some simple ways to beat inflation.
Buy Good Quality
You may think you’re saving money by buying a cheaper pair of shoes, but those low-cost sneakers wear out in half the time requiring you to buy new ones sooner. Save up a little longer instead and invest in good quality items you know will last. It saves you money over the long run.
Buy A House (and Take out a Fixed Rate Mortgage)
Owning a home with a fixed-rate mortgage is one of the best ways to fight inflation. You may think it’s easier to rent your home, but you’re throwing money away over the long run and paying someone else’s mortgage. Get into the habit of setting aside ten percent of your net income until you have enough saved for both a down payment and the loan costs. Be sure to get a fixed-rate mortgage. It may cost more in the beginning, but as the dollar continues to lose value, your mortgage will remain the same and end up being a great value over the years.
Cook Your Meals at Home
You can cook a meal at home for a fraction of what fast food costs. If you don’t know how to cook, take a class at your local vo-tech. You’ll be preparing your own delicious meals in no time. You’ll not only save money, but it will be healthier, meaning fewer medical costs.
Avoid Impulse Shopping
Come up with a spending plan where you decide where each dollar you earn will go. Don’t think of a budget as deprivation, but rather a road map to help you get to debt-free living and comfortable retirement. Get into the habit now of making a plan where your money goes and saving a percentage out of every paycheck.
Follow these tips, and you’ll avoid the pain of inflation, save money and even look forward to a prosperous financial future regardless of the dollar’s value.
