How to Combat Financial Stress During Inflation
According to the Bureau of Labor Statistics, the Consumer Price Index increased by 8.6% from May 2021 to May 2022. This was the largest 12-month increase since the period ending in December 1981.
Most people are keenly aware of just how high the cost of living is. It costs more than it ever did to fill up your gas tank, put food on your table, pay your student loans and rent, and make ends meet. Forget vacation or savings! Now more than ever, quarterlifers are stressed about having a job that they enjoy, that pays enough, and that will help them through this rocky time in the U.S. economy. If you’re feeling pinched by recent inflation, here are some tips that can help.
1. Prioritize what you can control
You may feel a punch to the gut every single time you go to the pump or check out at the grocery store. Prices are higher than they’ve ever been, but this isn’t something you can control. You need both gas and food — they are necessities.
However, if you’re feeling like your money just isn’t going as far as you’d like it to, consider what else you could adjust in your daily expenses. Could you cut back on a few subscriptions for the next couple of months? Could you bring your lunch to work instead of eating out?
Find something that works for you (and still makes you relatively happy!) but don’t sweat what you need to survive.
2. Build a budget
Perhaps you’ve never had a budget. A lot of people just spend what’s in their account and hope for the best! The recent rise in prices could help you evaluate how much money you spend on what categories each month and allow you to build a budget that monitors those numbers. Once you know how much you’re spending, you can come up with ways to save like signing up for grocery rewards, fuel points, or maximizing efficiency to lower your utility bill.
3. Look for affordable or free activities
Don’t have extra funds for entertainment? You don’t have to sit at home! There are plenty of free or affordable activities that can help you enjoy your downtime without breaking the bank. Here are a few ideas that can work just about anywhere.
- Spend time at the park.
- Go camping.
- Visit local landmarks.
- Find discounts for local museums or festivals.
4. Try to save when you can
With rising prices, many quarterlifers are putting less into savings than they once were. It’s important to save for retirement, an emergency fund, recurring expenses, debt, etc. However, if you’re constantly penny pinching to save, then you may be missing out on life right now. Remember to strike a balance between saving every extra penny and enjoying the occasional special event or vacation.
Final Thoughts
It can feel like there’s a lot of uncertainty when there’s financial strain, and that isn’t helped by current inflation. Follow the tips above, focus on what you know, and don’t forget to keep your spending balanced. It’s okay to still enjoy your life even if you’re not saving as much as you used to.
For more tips for twenty-somethings, visit the Quarterlife Center.
If you’re interested in scheduling an appointment or you’d like more information, please call us at 1-844-QLC-TALK (1-844-752-8255) or email us here.
