How to Manage Your Finances During Fluctuating Inflation
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How to Manage Your Finances During Fluctuating Inflation


While inflation may not be as bad as it was when it reached historic highs in June 2022, it’s still considered high two years later. With financial experts saying it could stay high until 2026, it’s no wonder that a Gallup poll found that 41% of people in the U.S. report inflation or the cost of living as the most important financial problem facing their family. 


If you’re worried about the impact of fluctuating inflation, here are some tips to navigate financial uncertainty:


Start With the Basic Financials

You can’t change how much you owe on your house, apartment, or car, so add those up and subtract them from your monthly income. Now you know what you have left over to put toward other household expenses, savings, debt, and recreation. 


Evaluate Your Expenses

Utilizing apps like Flipp or Grocery Buddy can help you find the best discounts at your local grocery stores. You can also look into ways to reduce your utilities, like using LED lights and reducing the amount of warm water you use. Another way to limit your spending is to cut down on eating out, find free family activities, carpool to work, and cut down on your shopping. 


Manage Your Debt

One of the best ways to help your financial stability is to pay off your debt. If you need help figuring out a way to do that, you can always try the debt snowball or the debt avalanche. Both methods have you pay off one debt—your lowest debt or your highest interest rate loan, respectively—and then roll the freed-up finances into the next loan, and so on. 


Build an Emergency Fund

While a savings account is always good to have for future planning or a rainy day (like periods of high inflation), 27% of the U.S. has no emergency savings. To make sure you do, put the same amount of money away from every paycheck or use the 80/20 rule and ensure at least 20% of your money goes to savings every month. 


Try Credit Counseling

If you need help budgeting, make an appointment with a credit counselor. They will help you create a budget that works for you. Additionally, if you’re struggling to manage your debt, a credit counselor can enroll you in a debt management program. This allows them to work with your creditors to reduce your interest rate and consolidate your credit card debt into one reduced monthly payment, so you can pay off your credit card debt more quickly and efficiently. 


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