The cost of living has been on a rising trajectory. The U.S. Bureau of Labor Statistics reported a 5.6% annual core inflation rate on April 12, 2023. The persistent hike in the prices of essential commodities and services has reduced consumer purchasing power, making it difficult for people to pay for basic expenses such as shelter, food, fuel, and transport.

As a result, many U.S. households have been under financial pressure, where they are forced to pay more due to inflation. The good news is we have uncovered some important tips on things you can do to fight inflation hereunder.

What Is Inflation?

Inflation is simply a sustained increase in the general prices of goods and services. The U.S. Bureau of Labor and Statistics prepares and reports it monthly as a Consumer Price Index (CPI). Inflation is inevitable in an economy, and reversing through deflation usually takes a long time to see results. Luckily, we have prepared some tips below to help you maneuver and fight inflation;

Reduce Basic Costs and Expenditure

The living costs of housing, food, and transportation make up the most significant percentage of expenditure on income. An increase in the cost of living erodes the buying power of money, and the burden hits hard, especially for low-income households. Below are some things you can do to reduce costs:

Housing

Below are tips to help lower your housing costs:

• Apply for housing choice vouchers. The vouchers can help you afford housing payments, especially in higher-opportunity neighborhoods.
• Buy a home from a Community Land Trusts (CLT) Organization where you pay less for homeownership.

Food and Grocery

All food categories are impacted by inflation, and coming up with a strategy before going to the store can help slash your expenditure. Below are tips to save money on food and groceries:

• Devise a food spending plan. Before coming up with your budget, comparing it with the U.S. Department of Agriculture’s food spending plans for low, moderate, and high budgets is important.
• Choose cost-effective foods. Prepare meals from low-cost staples and choose canned and frozen foods over fresh, which tend to cost more. Finally, swap name-brand products for generic versions.
• Create a meal plan. Weekly meal plans help avoid impulse shopping or relying on takeout during the week. Shop while on a full stomach to prevent tempting impulse buys which derail your food budget.
• Compare the prices of food and grocery products. Compare products by weight for the best value and buy in bulk from affordable stores.

Energy and Transport

The gas prices are skyrocketing. Below are tips to help reduce the cost of transport;

• Limit your driving. You can limit driving by working from home, running errands in batches, carpooling or using public transportation, biking, or walking within a short distance.
• Take advantage of fuel-saving programs. Sign up for a gas rewards credit card.
• Lower the cost of your car and auto insurance.

Save and Invest More

• Audit your budget. Review your budget as your goals and spending habits change over time by squeezing tighter when prices increase to save more.
• Pay your credit card debts. It can be through a debt repayment strategy, a balance transfer, or a debt consolidation loan. Inflation increases the interest on loans which can become unbearable.

 Earn Money on Savings

Earning interest can cushion you against the effects of inflation. The following are saving options that can help you earn interest from your savings:

• Treasury bonds. These are long-term savings options of about 20-30 years which pay a fixed interest rate every six months until they mature. They are risk-free.
• Open a high-yield savings account. The savings account earns you more than a traditional savings account.

The glares of inflation can make one go bonkers. However, applying some of the above strategies can bring back sanity and help you rise above the waves of choking inflation.