Give your Paycheck some Inflation Insulation!
📈👀 We saw it coming like the holiday pounds… over the past year, the price of groceries, housing, and other necessities has increased 6.8%. That’s the biggest jump since people were clearing their Thursday nights to catch the latest Magnum PI (1982.)
The Fed is trying to MacGyver the interest rates down, but the situation looks like it will be around for a while.
So what’s a regular Steven Keaton to do? (That’s a Family Ties reference. You're welcome.)
Here’s Five Fast Facts to help you protect your Paycheck from inflation right now!
- 📝🧐Time to Reset Your Budget - 2022 is not the new 2021. Take a moment to look at a few of your bank statements from the last year to help you predict how much you’ll ACTUALLY spend month-to-month... and be sure to give some padding for inflation. Then consider where you can cut costs or negotiate some down.
- 💳 🛒Start Shopping Smarter and Looking for Rewards - Comparison shopping is especially important when prices are on the rise. An app like GasBuddy can spot the lowest price at a pump near you. The online tool Basket can help you find the best deals on groceries. If using a credit card then use one that offers a statement credit, travel points, or other rewards every time you swipe. Or if you want to rack up cash back but not a balance, try apps like Honey and Rakuten.
- 💵🏦Get More From Your Savings Account - A great way to get more from your cash in the bank is to look for a high-yield savings account. These help your money grow a wee bit faster than in a checking account or regular savings account that offers low or no interest. Just for perspective: the average savings account pays 0.06% in interest vs. high yield accounts can earn around 0.5%. Not enough to beat inflation alone, but it helps to offset the rising costs.
- 💸🚫Don’t Save Too Much: Invest! - Speaking of savings accounts…Cash isn't king during periods of high inflation. As a matter of fact, investing usually gives the best chance at growing your money during times like ours. So, stocks are most likely to beat inflation because they offer the highest potential returns. (As of early December, certain major stock indexes are already up about 25% for the year). But keep in mind: higher rewards = higher risks.
- ⏳🛻Set Up Passive Income Streams or Start a Business - One idea: got a truck or lawnmower in the garage you aren't using? Rent that bad boy out! You could also make products to sell on Etsy. There’s a market for just about EVERYTHING on there. If you have a spare room, storage space, or parking spot you can rent them out for some extra cash with minimal extra effort.
🔥Bottom line: During times of mass inflation, your paycheck and your bank accounts are literally worth less with each day you wait to take action. Consider bold moves like asking for a raise. Especially in the current crazy job market. Many employers may be willing to up pay to keep talent while so many people are calling it quits!
If you like our tips or have some of your own let us know by connecting with us on Social Media and be sure to share this newsletter with any friends or coworkers!
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