Don't Let High Inflation Get You Down

Podcast Transcription 

Money Talk is a podcast brought to you by PFCU where we will share tips and tricks and talk to the experts on all things finance related. Join us as we cover everything from credit and loans to cyber security and careers. No matter where you are in life, PFCU is here for you.

Hey everyone, we're here with another episode of PFCU’s Money Talk podcast. As always, I’m your host, Maddy.

Everything is so expensive! When’s the last time you heard this? When’s the last time you thought this? Probably recently because the cost of things has gone up and it can feel like your budget is stretched to the point of almost snapping.

Now, you probably already know that the price of goods and services does not remain constant over time. When prices go up, it's called inflation. When it takes more money to buy products and services, your purchasing power goes down.

Mild and steady inflation is actually a good thing, it encourages consumers to buy now which means demand rises, companies produce more and hire more workers and the economy is boosted. However, we know that one tough thing with inflation that we are all definitely experiencing right now, is that stuff costs more. The bad side is that if your wages don’t increase to match the rise of prices, budgets can be so tight that you might not be able to afford necessities like childcare, housing, groceries. People are buying less, so less money is going around and inflation spikes more. Now the economy slows down and unemployment goes up.

Alright, enough with the lesson on inflation. But if you’re feeling the effects of it, I want to share some tips on how you can handle it.

The first tip is to look closely at your budget. Try to find non-essential expenses that you can cut. This could come at the cost of cutting things out that you enjoy but being able to afford your essentials is crucial.

Some ideas on where you can start looking include subscriptions, buying used rather than new and staying in rather than going out,

Another big problem can be that your expenses grow but your wages don’t. Companies often do not increase wages to match inflation, as it's not required. So finding extra income can be helpful. Maybe it’s time to finally start a side gig doing something you’re passionate about. It also doesn’t hurt to talk to your employer about getting that raise.

And the third tip, unlike the tip that I shared before, there are going to be things that you can’t cut out of your budget like your bills. So a few examples of what you could do to save on costs would be to negotiate a lower premium on your insurance, change providers for your insurance or other provideres like cable, your phone service. Try lessening your usage by unplugging or turning things off, keeping your house a little colder in the winter and warmer in the summer can lead to some good cost savings.

And I know that it can be easy to fall into habits and the lifestyle that you’re comfortable or used to living but trying to make changes in your budget can bring some wiggle room back to your wallet. Revaluate regularly to make sure you can continue to handle your expenses until the economy evens out again.

Thanks for listening!

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