How To Keep On Top Of Higher Inflation
The last two decades has been a period of relative stability in terms of inflation rates. However, recent changes in the economy mean we are now living in a different environment. It’s uncertain how long higher inflation rates will last, however, the consequences are that many essential daily items are now more expensive than ever. Rather than sit back and watch your wealth whittle away as the cost of living increases, we recommend a proactive approach to adjusting your lifestyle. We have prepared the following tips to help you keep on top of inflation and continue to thrive financially.
Ask For A Raise
Most workers are in a premium position to ask for a wage increase at the moment. The labour market is suffering shortages across nearly every sector and job availability is high. This means every worker is now more valuable than ever, so it’s a great time to push for a salary increase. If your employer is unwilling or unable to cater to your request for a better salary, it’s a good time to be shopping around and looking for someone who is able to.
Shop Around For Utilities
During periods of higher-than-usual inflation it becomes easy to become complacent and attribute a rise in utility costs to the economic changes surrounding us. It’s important to keep an eye on price increases: whether it’s groceries, mortgage rates, electricity bills, insurance premiums or otherwise. If a price is totally unreasonable then it follows that shopping around for a better deal is a good idea. Get a handful of quotes and compound your inquiries with this information to prompt service providers to offer a better rate.
Cut Vehicle Costs
Fuel prices are through the roof right now, so if your vehicle is burning a hole in your wallet, it may be time to switch to a smaller, more-efficient vehicle. In addition to this, try to complete multiple errands in the one trip and engage in recreational activities closer to home when you can. Public transport is one travel alternative that will save you money and it’s always worth comparing fuel prices using a site like Petrol Spy to ensure you’re getting the best deal.
Adjust Your Diet
While the price of some groceries has stayed steady, others have increased by up to 20%. It therefore makes sense that you should try to eat more of the former category whenever possible. Be selective with the groceries you buy rather than stubbornly insisting that you eat the same meals no matter the price.
During periods of high inflation, the real value of debt is eaten away. The value of your assets will likely increase faster than inflation in the long-term, however, you may be more exposed to rate rises in the short-term. It can be beneficial to pay off debts faster during periods of high inflation to increase your financial security, however, if you have ample income then riding out the rises is also possible. At the end of the day, rising inflation is not the end of the world and with a few simple lifestyle adjustments you should be able to stem the tide of increasing prices and maintain your financial stability.
Contact Pillar Financial
Call our friendly team on 1300 730 309 or reach out via our contact page to ask what we can do for you as you begin your journey towards financial freedom.