It can be tough to save during times of inflation. As this episode is being recorded, inflation is at its highest point in over 40 years!
In this episode, we cover:
- Saving in spite of inflation
- How to manage your budget when prices are rising
- Savings tips for navigating a period of inflation, no matter where you are in your savings journey
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“Saving is a habit, not a destination.”
We always want our savers to feel prepared and financially confident as they navigate the impact of rising inflation.
Inflation often means that people have to rethink how they spend and save. When the basic necessities begin to cost more, it can cut into other areas of your budget, sometimes in a significant way.
There are three groups of people saving right now, and each group may need to rethink their savings goals to adapt to inflation. They are:
- People who have no savings - These folks are faced with learning how to buckle down and begin saving in a time that it’s really hard to save.
- Have some savings - This group is tightening their budget when it isn’t going as far as it used to,and are faced to rethink if they will continue to save, or reallocate their savings to see if they can keep saving at the rate that they were before inflation.
- Have strong savings - Although this group also has to spend more due to inflation, they may have money left over to continue saving. These folks may want to consider how and where they are saving.
It can be difficult to begin a habit of saving in a time that is a little more difficult than usual. The best way to start is with a small goal. For example, to save $500. They can take small steps toward this goal every day or week, and can celebrate when they reach that goal. Remember that this goal is the first step in a saving journey, and that if you can accomplish your first saving goal, you can accomplish your next one, too!
Saving might also mean making lifestyle adjustments. For example, instead of a big summer vacation, your family can enjoy local events, which are often free or low-cost, and allow you to get more involved in your community! Check out episode 1 of our podcast for more creative ways to save.
No matter where you are in your savings journey, you can leverage education, resources, and support to take action to increase your financial stability.
THIS WEEK’S THINK LIKE A SAVER CHALLENGE
Take some time this week to explore your city for no or low cost. This might include local activities hosted by your city, or simply taking a walk in your neighborhood or a park.
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