Can’t “out-budget” inflation? Here are things you can do

Inflation is a nightmare for many Americans who are already stretching their dollars to cover basic needs. What happens when those dollars lose value?

They have to make tough commitments, beyond reducing real-time streaming subscriptions or buying cheaper store-branded groceries. Instead, Americans cope with high inflation now you may have to choose between buying enough food and paying the rent.

Families most affected by inflation tend to have few savings and few security resources. Their limited financial resources may be rooted in historical inequality, said Phuong Luong, a Massachusetts-based certified financial planner and founder of financial education firm Just Wealth. When inflation makes everything more expensive, for families with limited resources, basic needs can become unattainable.

You may need to raise cash to support yourself as well as extended family members. You may have to spend money and time traveling around the city to the grocery store or doctor’s office.

“Your closeness to people with resources and people with wealth will be different depending on where you live and who you are,” Luong said. “There is a broader context than just spending and budgets.”

Here are some tips to combat high inflation when money is already tight.

Prioritize the essentials

It first covers expenses that allow you to live safely, including housing costs, utility bills, and food. Also try to cover the costs that allow you to work, such as transportation costs, your cell phone bill, and child care expenses.

Second-level priorities are the ones that trigger important consequences if you don’t pay them. Think about taxes, child support payments, and insurance.

For credit cards, try to make your minimum payment, so that you do not accumulate debts with high interest rates.

Touch local resources

If you have trouble paying your bills, find support. Luong suggests Findhelp.org, which lists local programs designed to help Americans reduce costs in different categories, such as food and health care.

Call 211 or visit 211.org for help with housing, health, food and emergency expenses.

It doesn’t hurt to ask

You can also save money by calling credit card and insurance companies, lenders, banks, cell phone providers and other companies that you pay for and asking for some relief.

With the pandemic affecting so many consumers, these companies “are a little more empathetic than they’ve been,” said Emlen Miles-Mattingly, co-founder of Onyx Advisor Network, a network of minority financial advisers based in Sacramento, California.

They may be willing to stop or reduce your payments, or forgive overdue bills. Or they could even lower your interest rate.

Connect with your community

To overcome the financial struggles, “the community will be important,” said Dasha Kennedy, an Atlanta-based financial activist and founder of The Broke Black Girl, a financial education community for African American women.

Supporting or supporting family, friends, and neighbors can help alleviate costs. For example, Kennedy suggests moving in with family to reduce housing costs. Or you can pool resources by sharing a vehicle or splitting the payment of a large expense.

To connect with local people you haven’t met yet, look for libraries, recreation centers, and community centers. Or connect with neighborhood groups on social media platforms like Facebook and Nextdoor.

Community members can post information about free local resources or share how they have been able to save money locally.

Monetize your skills

Diversifying your revenue stream can also help cover rising costs. If you’re already working, Kennedy recommends that you try to increase revenue through your employer. Consider working overtime or negotiating role increases and changes.

Or explore secondary work, with caution. Many online concerts can waste your time. take your money or misuse your personal information.

“It’s time for scams and scams,” Kennedy said. Trust your instinct and read the reviews. Also check the websites of the Federal Trade Commission and the Better Business Bureau for tips on avoiding scams.

If you’re creative, you can turn to a platform like Etsy to sell homemade products directly to buyers. You can also sell unwanted household items and clothing on sites like Ebay or online luggage stores with ThredUp.

In:
• Economy
• Gas prices
• Inflation