Stretching your hard-earned money can be quite challenging, especially during this time of inflation. The pandemic has contributed greatly to the rising inflation rates so if you do not start making smart financial decisions as early as now, you’ll see yourself in a much won’t be able to save money for the future.

What is Inflation?

According to Investopedia, Inflation is a general increase in the prices of goods and services over a given period of time, leading to a decrease in the purchasing power of money. Imagine a unit of money can only buy fewer goods and services prices have skyrocketed.  

Inflation in Canada might be twice as high as it is, but whether your view of inflation is negative or positive it’s always a good practice to save for the rainy days. I have listed 7 ways on how to save money, even when prices are surging with inflation.

Manage your Grocery List

Shop for cheaper alternatives, Buy items on sale., Allot a grocery budget and stick to it

Always plan before doing your groceries. Without a list, you will be forced to grab whatever it is that you won’t even need and make further impulse purchases. Allot a grocery budget, stick to your list, and make adjustments only if necessary.

Do you grocery shop in a single store? Now is the perfect time to visit multiple stores to compare prices. Check if you can buy a different brand for a lower price. But maximizing your food budget doesn’t necessarily mean you’re not going to make smart food choices. Consumption of food with little to no nutritional value will only compromise your health in the long run, hence more medical expenses in the future.

Another way to save money at the supermarket is to consider buying store brands. Compared to name brands, store brands offer the same quality at a lower price. If you can shop for cheaper alternatives, you get to add more value to your money.

Cancel Unwanted Subscriptions

Streaming services, apps for kids, subscription boxes — these might be hurting your budget and you don’t even know it. The first thing to do is list down all your subscriptions and decide what to keep and what to let go of. You might be surprised that you have unused subscriptions that you forgot about that’s been eating away at your finances. If your kids have outgrown a few kiddie apps, it’s time to cancel your subscription to get rid of recurring payments. You might also want to let go of some of those product subscriptions that don’t really contribute to your wellness but instead add clutter to your home.

To make things easier for you, set up a subscription management app to help track all of your subscriptions in one place.

Slash your Transportation Costs

Switch to using public transportation if you’re really short on cash. Not only will it help you save on fuel, but you will also need not worry about car maintenance. Use your car only when necessary, in the meantime. 

Another way that you can reduce transportation costs is by carpooling, to split the cost of gas between you and your co-workers. Now is also the perfect time to reconsider finding another job that’s closer to your home. But if a remote work-from-home option is available, better go with that alternative. Staying at home while working will help you not to blow your budget with the surging gas prices.

Automate your Savings

I have tried this before and it really worked for me. Try to automate your savings to reduce the temptation of spending without planning ahead.

From your local bank, ask them to link another savings account and then you can opt to have a percentage of your paycheck deposited in that account a fixed amount was transferred to my other account. If you can’t automate your savings, try allotting a part of your salary per month and transferring it to your savings, following the rule SAVINGS before EXPENSES.

It’s also a wise decision to track your savings so you know where your money goes. It’s also one way to know if you’re prepared to make further investments or decide on how to pay your debts. To track your savings, use an online savings calculator at https://www.savingscalculator.org/. It’s a helpful tool to keep your finances in check.

Cut Back on Energy Bills

To start lowering your energy bill, you must manage your energy use. Here are some tips on how to improve your home’s energy consumption:

• Replace your old lighting system with energy-efficient lighting.

• Fix leaky pipes and ductwork.

• Check if seals are properly installed on windows, doors, and appliances.

• Buy efficient appliances.

• Inspect if both cooling and heating systems are properly maintained.

Pay Off Your Debt

To pay off your debt faster, try to pay more than the minimum. And consider paying off your most expensive loan first. It’s not easy to save while paying your debts at the same time, but you can do it when you have more than enough savings once you’ve cut down your expenses. Getting out of debt is a priority because debts hurt your budget as time goes by. Settle your debts once and for all and you’re one step toward financial freedom.

Look for Free and Cheap Yet Fun Activities in your Area

Save money while still having fun? It’s possible. Invite your friends to go for a long bike ride or a quick road trip. Check if there are any museums or zoos that offer free admission. Tour your city and go sightseeing.  

You may also find activities that help your community attractive. Volunteer at an animal shelter or participate in summer reading programs. Plant trees or tend to the public gardens. 

Published: 2022-10-20 00:58:43