If your wallet feels a little light lately, inflation is probably to blame. Inflation doesn’t only drive up the costs of products and goods, it also makes it harder to make regular financial decisions like investing, spending, saving, etc. So, all you need is to store a few tricks up your sleeves to tackle such dire economic conditions, and we’ve rounded up the best ones for you.
Getting a Full Picture of a Budget
The smarter decisions with your money need a clear picture of the exact money you have in the first place. According to professionals, in the practice of inflation check, the budgeting exercise comes first before the prioritization exercise. It’s easy to track your transactions and finances. Just download a budgeting app or check your online bank account statement every now and then.
Saving Without Agonizing
Inflation generally comes with the effect of rising expenses faster than your income. So in the condition of tighter money, it gets harder to save for the long-term. But it’s necessary to have enough in your savings account as a 3-to-6-month emergency fund. You don’t need to stuff more than that, as interest rates likely remain a lot lower during inflation. So, calculate cleverly.
Intentional Cutting Back
People are generally pretty good at budgeting around large expenses like mortgage or rent payments, monthly groceries, car EMIs, etc. It’s the smaller recurring expenses, such as streaming, file-hosting, meal kit services, newsletter subscriptions, gym membership, etc., which add up quickly. So during inflation, be firm, prioritize your necessities and get rid of everything else.
Investing in the Most Boring Way Possible
Though it sounds dull, this is the step that can get you through tight inflation. Inflation is not the time to make risky bets. So instead of a volatile stock market, invest in low-cost long-term goals and safer assets, with retirement in mind. It’s better to hold off on meme stocks for the time being. Think of your investments as the more linear and straightforward, the better.
Believing That Life Is More Than Just Money
This particular life motto can save you in many tough situations, let alone inflation. The recent global scenario has taught us to spend less money and more time in our daily life. So, hold onto that practice and try to hang out more with close ones who spend in better and more thoughtful ways. Certainly, camping for the weekend will save more than a stay in a fancy hotel!
Steve Addison is a 32-year-old dad to his three-year-old son named Felix. Steve recently built him a full-size arcade machine that has classic games like Mario and Sonic. He managed to do it for less than $185. The game is two-player and has a retro vibe, which makes it even cooler.
Discovering a Hidden Talent
Addison doesn’t have any DIY experience but decided to take on the project anyway. He used an old Atari computer along with arcade buttons and some wood that he purchased from eBay. Felix can now enjoy over 500 retro video games from the comfort of their own home.
This project was started after Addison, who works at McDonald’s as an assistant manager, was placed on furlough. Since his DIY capabilities were non-existent, his wife Kerry laughed off the idea when he first mentioned building the arcade.
Kerry is a 29-year-old NHS mental health nurse who initially had her doubts about the project. Still, Felix was very excited about picking out some of his favorite characters for the exterior paint job.
The Homemade Arcade Was Worth the Investment
After his research, Steve found that buying a similar arcade brand new would cost more than $1,200. Many of his friends have expressed their interest in having him create them their own arcades. Steve mentions that he is happy to work on these new projects since he has developed a new passion for his hidden talent.
Once Steve goes back to work, he plans on having an arcade put in the staff room so that his colleagues can play their favorite games during their breaks. He is thinking about taking his wife’s idea to join a carpentry course in college to advance and perfect his skills in woodworking.