The annual inflation rate for the United States looks much better than when it shot up to 7% in 2021 and 6.5% in 2022. Last year, inflation came down to 3.4%, and as of July 11, 2024, it was as low as 3%.
However, inflation affects goods and services differently. For instance, energy and gas prices have decreased while housing prices have increased. So, everyone feels the financial strain of inflation based on what they buy.
No matter your budget, the best way to fight inflation is to be mindful of your spending by cutting costs or getting more for your money. This post will review 15 of my favorite saving tips for keeping more of your hard-earned dough.
Use as many of the following tips as possible to fight inflation. Even making a few small changes to your spending habits can add up to significant savings.
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1. Earn more on your savings
If you have money sitting in a low-yield savings account, it’s time to move it to a high-yield option. Right now, some banks pay over 5% APY, which can really help your savings grow!
Use a comparison site like Finder.com to shop for FDIC-insured high-interest savings accounts with no monthly fees.
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2. Switch to a better bank
If you’re paying monthly bank service fees, it’s time to switch to a free checking account. Many online banks and credit unions have no fees and pay competitive interest rates on checking and savings balances.
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3. Cancel unused subscriptions
If you’re paying for something you don’t regularly use, cancel it immediately and put your cash to better use. Review your expenses and look for products and services like a gym membership, magazines, and clothes or food subscriptions you don’t genuinely need.
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4. Compare prices at discount stores
Discount stores like Aldi, Costco, and Walmart can be excellent places to find items for less than pricier places like Whole Foods and Fresh Market.
Take time to compare prices for the groceries you typically buy the most. Also, try less-expensive generic brand products to see if they’re just as good.
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5. Use a cash-back credit card
If you use credit cards for everyday purchases, ensure you get the most rewards. For instance, if you spend a lot on gas, buy it with a card that pays a high reward for that category.
Or, if you spend a lot of money on Amazon, the Prime Visa pays 5% back on purchases there and at Whole Foods when you’re a Prime member. The idea is to maximize card benefits based on what and where you buy the most.
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6. Cook at home more
An excellent way to save money and eat healthier food is to cook at home more often. By planning meals, you can make expensive ingredients, like meat, go further, and use inexpensive ingredients, like rice, beans, and potatoes.
If you have the space, consider growing herbs on your window sill, a tomato vine on your porch, or various fruits and vegetables in your yard. Growing, cooking, and preserving your food can be a fun hobby that drastically cuts your grocery bill.
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7. Shop insurance policies
Unfortunately, being loyal to your insurer doesn’t always mean you get the best deal. Review and shop your insurance policies yearly to ensure you have the right coverage at the lowest price.
Many property insurers offer discounts, such as for “bundling” coverage, like auto and homeowners or renters, with the same company. They might cut your rate based on your occupation, whether you’ve completed driver’s education, got married, or are a good student. So, ask your insurer if you’re getting every money-saving discount you’re entitled to.
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8. Increase your insurance deductibles
When you increase your car, home, or renters insurance deductible, you pay more out-of-pocket for claims but have lower premiums. Just be sure you always keep enough in an emergency fund to fully cover a deductible if you need to make a claim.
Another option to cut the cost of car insurance is to reduce your coverage. That said, you should never be underinsured. So, only use this tip if your situation has changed, such as having an older vehicle you paid off and no longer need to insure.
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9. Drive a less expensive car
In addition to auto insurance, everything related to vehicles is costly, like fuel, maintenance, and sticker prices. If you have an expensive car, trading it for a more affordable model reduces your monthly payments and may also cut your auto insurance.
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10. Shop in second-hand stores
Spending money at local or online thrift and consignment stores is an excellent way to pay less for clothing, accessories, furnishing, and sporting goods. Plus, you’ll be doing your part to help the environment. I’m a huge fan of buying new or gently used clothing at sites like ThredUp and TheRealReal.
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11. Sell unused items
Everyone has gently worn clothes, housewares, or sporting goods they aren’t using. Try selling them online at Poshmark, eBay, Facebook Marketplace, or a local consignment shop, such as Play It Again Sports. You’ll declutter, raise cash, and pad your savings account.
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12. Use the library
If you love to read, listen to audiobooks, or watch movies, getting a library card is an easy way to save money. Most libraries have an online portal to borrow ebooks and audiobooks for your Kindle, computer, or mobile device, so you may not even have to visit a local branch.
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13. Consider a balance transfer offer
If you’re getting charged expensive interest on a credit card balance, consider transferring the debt to a 0% balance transfer credit card. That allows you to save money during a promotional period that may last up to 18 months.
However, if you don’t pay off a balance transfer before the promotion ends, you can get stuck paying a high interest rate.
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14. Start a side business
There’s no limit to ways you can increase your income. Depending on your interests, skills, and experience, you could become a rideshare driver, teach online, or provide a local service for extra cash.
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15. Keep investing
While investing may not sound like a way to save money, the money for your long-term goals must outpace inflation. Despite the market’s ups and downs, it has historically returned about 10% annually.
So, start investing now, if you haven’t already, using a buy-and-hold-strategy. Your future self will thank you!
This article originally appeared on QuickAndDirtyTips.com and was syndicated by MediaFeed.org.
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