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It’s no surprise that inflation has hit people hard in the last year. Gas costs have gone down recently, but other things like groceries cost more than ever before. Here are some ways to save a bit of cash.
Travel
When it comes to inflation-fighting tips, remember that you always pay for conveniences. When it comes to virtually any purchase, convenience always cost more than if you made things yourself. But it’s especially expensive when you travel.
Staying at a cheaper place nearby is usually less expensive than staying at a pricier place farther away. Most airlines charge for checked bags, so packing efficiently could cost you between $30 and $50. On that rental, pump your own fuel to avoid paying extra fees.
He has other examples too. “Eating at the hotel may cost more than eating at a nearby restaurant. Eating at an airplane terminal may cost more than eating before you board the flight.”
Sure, there are some people who would rather spend more than they need to for the convenience of flying first class, but if you’re one of them, then that’s fine. Just keep in mind that you could get away with paying less.
Groceries
To fight inflation, shop strategically for your food. You might think that buying groceries would be an easy task. After all, you just go into your local supermarket and pick out what you want. But, if you’re like me, you’ve found yourself standing in front of the grocery store wondering where to start.
I’m not talking about figuring out how to get my family through the week without starving. I’m talking about finding the best deal possible.
In order to do so, I had to learn a lot of things that I didn’t realize were important before I started doing research. Here are five tips that I learned along the way.
But Andrea Woroch has some good advice for anyone who wants to shop smarter. She suggests going to the store with a plan, having already made up as many meals as you’re able between now and your next visit to the supermarket.
You should also be strategic when planning meals. For example, look for meals that use overlapping ingredients and check local circular flyers to see where you can buy groceries at the best price.
She suggests that if you’re looking for fresh foods that are close to their expiration’s dates, then you could save around 70%. However, she warns that these foods may not be safe to eat after they expire. So, she recommends consuming them as quickly as possible.
Finally, if you want to save even more money when you go shopping, consider shopping at a grocery store that has a fuel rewards program because you can earn one dollar off each gallon of gas you purchase.
For example, Kroger Fuel Rewards Program allows you to earn one dollar per dollar you spend on groceries. You can redeem these dollars at participating Shell gas station locations.
Even though online grocery shopping has delivery charges, it can still save you money compared to going to the supermarket. It helps you steer clear of impulse purchases and offers deals through coupon sites.
If you don’t want to spend too much of your precious free hours shopping for groceries, then going grocery shopping the old-fashioned way may be worth considering. However, you’ll end up saving more by using our method.
Gas
It’s important to plan your trips ahead of time so you don’t get caught off guard. It’s not exactly “groundbreaking” but if you’re going to be doing something, might as well do it right.
“Unfortunately, gasoline prices are still high in most parts of the U.S., and there are very few ways for drivers to cut back on their fuel costs,” he tells us. However, he adds, if you plan your trips well in advance, you can save time by making sure you’re going the shortest route between two points.
You don’t necessarily need to plan your entire trip ahead of time. If you have an application on your smartphone that tells you where you can get gas for the cheapest price, then use it.
If you plan ahead, you might consider talking to a family member, friends, or neighbors about carpooling errands.
For example, perhaps you alternate grocery shopping weeks where one person drives and another person drives the following weekend. That may only save you some money, but it could make things more fun for everyone involved.
Another obvious tip is to drive less. The working from anywhere trend is stronger than ever. If your job allows, ask for time off so that you can spend some time at your own place.
Utilities
To keep inflation under control, don’t become complacent with your utility costs. When we don’t compare prices, we usually end up sticking with our current provider. But sometimes, there may be a choice, and even if there isn’t, it’s easy to get into a routine where we completely forget that we might have other choices.
“Consumers who have used the same service provider for electricity, gas, or broadband for years often get too comfortable,” Fernandes explains.
“Don’t hesitate to contact these companies and ask if they offer any new deals.” New consumers enjoy special discounts and perks that previous clients don’t, so checking out the competitors could save you some cash.
Another example of complacency is failing to update your old technology. He explains that when it comes to inflation on consumer goods, the greatest villain is utility bills. Consumers can lower their utility costs by decreasing the frequency at which they use electricity, water, gas, etc.
Insurance
To fight inflation, review your insurance bill. Analyze your insurance policies to see if you can save some money. You may be able to cut your insurance costs by up to 20 percent by bundling different types of coverage into one policy.
Of course, you can also compare insurance prices if you want to. Woroch suggests that we all look at our bills now and then.
“Look for ways to save by cancelling unnecessary services, adding-on or unneeded subscription plans,” she suggests.
Entertainment
To fight inflation, get rid of some things, but not everything. Entertainment can bring us great pleasure, whether it’s watching our favorite show, listening to our favorite song, reading our favorite book, or playing our favorite video game.
But not everyone sees entertainment as being equally important. Some people might think that spending money on entertainment is frivolous, while others might believe that entertainment is something that really matters.
For example, if someone spends $100 on a movie ticket, they might feel good about themselves because they spent so much money on something they enjoyed. On the other hand, if someone spends $200 on a new pair of shoes, they might feel bad about themselves
“I once worked on a financial plan for an elderly man who had a golf membership that I categorized as discretionary in his retirement projections. He told me that this was his main source of enjoyment and recreation.
He said that he preferred to delay retiring until after he no longer needed the membership. That made sense to me, so I revised my assumptions accordingly. I then realized that what I might view as discretionary is important to others because everyone has different needs.”
Basically, if you enjoy something, then continue to do it. Even better, if you’re playing sports or exercising regularly, spend some extra money on these activities. You can always save up for them later. Find somewhere else in your budget to trim down.
But if you’re struggling financially, it might not be worth spending money on something you’ll only occasionally enjoy. Check out your local library instead.
They offer lots of great freebies, including movies, TV shows, games, music, and ebooks. Plus, they’re open every day of the week, so you won’t ever miss an opportunity to check them out.
If you and your group of friends spend too much money at fancy restaurants and bars, you might want to consider going to less expensive options instead.
Or maybe during certain times of the year when prices drop, you can save by going out for drinks after work. You may need to look closely at your finances to see where you can cut back.
The Bottom Line on Tackling Inflation is Watching What You Spend
You can really stress yourself out over trying to save some money, and you can certainly spend way too much time worrying about cutting back. “Buying low quality or nearly expiring groceries that you’re likely to throw out isn’t worth it.”
At the same time though, you don’t need to feel helpless when it comes to saving money. You can get by without doing anything if you just keep an eye out for ways to cut back.