Inflation occurs when there is a significant (often sudden) increase in the prices of products and services in an economy. As the general price level of goods increases, the quantity a currency can buy decreases. This increases your cost of living, which can negatively impact your finances.
Saving money is crucial to maintaining a healthy bank account and ensuring that you can still live a comfortable life even during high inflation. By having sufficient savings, you’ll be at ease knowing that you can still afford goods and services, regardless if their prices change.
Here’s how you can save money during inflation.
In This Article
1. Look for Ways to Keep Costs Low
You’re probably paying for a lot of things every month to live a comfortable life. However, not all of these are essential — some might be excessive and cause you too much money.
To save money during inflation, look for ways to keep costs low. This means looking over your budget and checking where you’re spending your money. For example, if you’re subscribed to several streaming services, assess if you’re using all and discontinue paying services that you don’t use often. If possible, consider cutting off all streaming services and look for cheaper ways to entertain yourself.
You can also keep your costs low when you:
- Shop smart: Subscribe to loyalty programs and newsletters of your favorite brands to receive weekly ads. These ads contain promos and discounts for the week, allowing you to determine when is the best time to shop while saving money.
- Eat at home: Eating meals at home allows you to save a lot of money. The internet is a goldmine of information on the easiest, tastiest recipes, so you can easily make one from scratch — even if you’re not a pro at the kitchen!
- Reduce electricity use: There are many ways to reduce electricity use, namely hanging out wet clothes instead of turning on a dryer, adjusting the thermostat, and turning off appliances when not in use. If your budget permits, consider investing in energy-efficient appliances and light bulbs.
2. Buy Online
E-commerce is growing at a significant rate, making it easier for you to buy a wide variety of goods and services online. Aside from being convenient, do you know that shopping online is one of the best hacks for saving money during inflation?
Buying online helps you save money because you have the opportunity to purchase goods directly from the manufacturer. This will save you plenty of money from paying any additional costs often placed by retailers and brands before they put a product in their brick-and-mortar stores.
Additionally, online stores offer free services when you buy from them. For instance, many online stores will offer free shipping to first-time buyers or buyers who reach a certain amount when they shop. These services give more value to your hard-earned money!
3. Get a Side Gig
Due to the rising prices of goods and services, having one full-time job might not be enough to cover all of your expenses. This is definitely true if you belong to a large family.
If you have extra time on your hands, consider getting a side gig to save more money. Nowadays, people will pay other people to complete different (usually easy) tasks, such as looking after their homes when they’re away and taking their pets for a walk.
You can also look for freelancing gigs online. Depending on your skill set, you can work as a writer, editor, or virtual assistant for an employer overseas.
4. Master DIY Projects
There will come a time when your house will need repairs. You might need a fresh coat of paint on your interior and exterior walls, replace a leaking pipe in the kitchen, or add more storage in your living area.
Instead of calling professionals to repair minor issues around your home, take matters into your own hands. You can find articles and tutorial videos online to help you repair minor issues at home. You’ll be surprised how fast, easy, and affordable it is to renovate your home using DIY hacks.
Aside from helping you save money, mastering DIY projects will also give you a sense of accomplishment. Plus, if you want to earn more money on the side, you can always offer your services to your friends or neighbors.
5. Shop for Used Items
Do you want to redecorate your home? Or add more clothes to your closet? Shopping for second-hand items is an excellent way to bring brand new life into your home or closet without breaking the bank. You can look for used items on different websites or visit trading stores, garage sales, or flea markets in your area.
To find the best second-hand items, take all the time you need to inspect their condition. If you see a wall art you think would work really well in your living room, check if it has any signs of damage on the sides, front, and back.
6. Declutter and Sell Unwanted Items
If you’re fond of shopping, chances are, you have several items in your home that you no longer use. These can include clothes, furniture, electronics, or even home decors.
Another way to save money during inflation is to declutter and sell unwanted items. Taking this route is actually a win-win for you: you get to enjoy a cleaner, well-organized home while being able to earn money, which you can spend on your necessities.
When decluttering, start with one area and then proceed to the next instead of attempting to do several areas at once. For example, you can start decluttering your bedroom and assess which items you’re going to sell, and then move on to your living area. This will prevent you from getting overwhelmed with the process.
7. Quit Bad Habits
Buying unnecessary items during inflation might prevent you from buying essentials. For instance, if you spend a lot of money on buying cigarettes, your budget for your groceries and mortgage might be compromised.
This is probably challenging for many, but quitting bad habits is a must if you want to save money during inflation. On average, a ten-day smoking habit can cost you £1,825 or $2,249 every year. You can enjoy your money better if this amount is spent on your necessities.
Besides smoking, cutting down on booze can also help you save money. On average, a person spends £1,000 or $1,233 annually on alcohol. Cutting out at least two glasses of wine or pints of beer every week can save you at least £400 or $493.
Improve Your Spending Habits
Saving money during inflation is a long process. Don’t expect to succeed in your efforts if you only change your spending habits for a week or month and then return to your old ways.
Incorporate all of the tips mentioned here into your daily routine to save money. Sure, doing this is challenging as it requires adjustment, but the results will surely be worth it. In fact, saving money can become your key to living the best life even when inflation hits your country.