In March 2022, inflation reached a rate of 8.5%*, forcing consumers to get creative with their spending. Millennials are known for spending more than other generations, especially on expenses that are currently affected by inflation like rent, housing, gas, cars, and groceries. How does a generation that has never experienced inflation adjust to this new reality?
1. Assess your spending habits. Adjusting for inflation means you may have to adjust your budget. Take a look at what can stay and what can go; can you work out from home and ditch the gym membership? Can you find a better cell phone plan? Consider shopping at a discount grocer, buying off-brand items, using coupons, and purchasing items using a credit card that offers rebates for every dollar you spend. Your goal is to neutralize your spending against inflation.
2. Up the income. In addition to budgeting, think about increasing your income to maintain your spending power. Find a new position with a higher salary, ask for a raise, or consider a second job that will help you sustain your current lifestyle.
3. What does your savings look like? As inflation rises, the value of money declines, which means the value of your cash gets less and less. Consider putting your money into a high yield savings account so you don't lose it. Keep your cash diverse!
At Telhio Credit Union, we offer personal services that put our members first, from checking accounts and savings options to educational resources and wealth management. Learn more about Telhio by visiting telhio.org.