Tips for Trimming Your Budget when Inflation is High
Consolidate credit card debt. If you are working on paying off credit card debt, now may be a good time to look at balance transfer offers that will allow you to pay them down at a lower interest rate.
The promotional rate on balance transfer offers usually expires after a period of six to 18 months, so if you are carrying larger balances, you may want to discuss options with a credit counseling service. They can help you find solutions that won’t break your budget now and will help you eliminate debt over time.
Sell what you don’t need or use. Now may be a great time to hold a yard sale or to start posting items for sale online. This can help you generate some extra cash. If you have a larger item that costs money to maintain, like an extra car, you may want to consider selling it so you can cut out the extra insurance and tax payments.
Switch car insurance. Speaking of cars, take a good look at your car insurance. Maybe you can find savings by switching your plan to a higher deductible. You may also want to look at a different insurance provider that could save you money.
Cut out unnecessary expenses. Examine your budget and expenses carefully. Maybe you have a magazine subscription you’re not reading or a streaming service subscription you don’t use very often. Ask yourself if you’re getting your money’s worth. It may be time to cut those out of your budget — at least temporarily.
You should also look at small expenses. If you make a daily trip to the coffee shop, for example, those purchases can add up quickly. Cutting those projects and services out of your budget can add up fast, too. More tips can be found in the blogs Spring Clean Your Finances and 5 Lifestyle Changes that will Save You Money.
Change how you shop. The rising cost of basic necessities, particularly grocery store items, has hit many people hard. Look at your grocery list for potential changes you can make. Switching from name-brand items to generic products can provide some instant savings.
You could also cut back on items that have been hit hardest by inflation. For instance, the cost of carbonated beverages, like soda, has risen sharply in the last year. Buying less of these types of products will have a positive effect on your budget.