While some experts say inflation has peaked, it’s left behind angry consumers, lighter wallets, and more questions than answers. Not all is lost: Effective tactics for surviving inflation exist, and they’re not difficult to implement into everyday spending.
Here’s how you can start saving for inflation and sharpen your inflation budgeting, starting with the lowest-hanging fruit: refinancing.
Refinance Your Credit
Refinancing some of your credit, like your auto loan, could free up short-term cash. However, it will extend the term in which you have to pay off your mortgage, and it’s best to make sure you can afford the upfront costs of your refinance.
You should only refinance if your creditworthiness allows it. In other words, if you’re a creditworthy borrower with income verification who will make the bank’s underwriting process easy, you may be able to refinance and qualify for a lower interest rate.
If you’re currently paying off an auto loan, refinancing could benefit you, as well.
Examine Your Subscriptions
Whether it’s for a premium shopping service or software, it’s easy to lose track of monthly recurring subscriptions. Those subscriptions, no matter how cheap, add up over time. Streaming services, like Spotify and Netflix, tend to be the biggest culprits, with the average American spending anywhere from $100 to $200 a month on subscriptions.
Examine your monthly recurring subscriptions and only keep what you truly need. Take an honest look at how often you actually use these services and make an informed decision from there.
Make the Switch to Off-Brand
Buying off-brand, generic groceries can be extremely effective when it comes to saving for inflation. Don’t neglect coupons on mail flyers or the backs of your grocery store receipts, either. Coupons are a tried-and-true way of generating savings as high as $1,500 a year.
Start a Side Hustle or Sell What You Don’t Need
With our current economic environment, having several income sources is optimal for inflation budgeting. Not only will a side hustle provide more disposable income, but it will also help you grow a network of connections, a valuable asset in any economic environment.
If you often find yourself working from home or having more free time on the weekends, consider starting a side hustle. Alternatively, sell old furniture or clothes you don’t wear—eBay is a great place to start.
Use a Balance Transfer Credit Card
Another way to free up short-term cash is through debt consolidation via a balance transfer credit card. Balance transfer credit cards allow you to move debt from one account to another, helping you manage repayments on several cards and avoid interest payments entirely. This kind of debt consolidation can also help you pay down your credit card balances faster.
If you’re considering refinancing your credit to help you budget for inflation, Gravity Lending can help. We are a premium fintech company providing custom, low interest rate refinancing for auto loans, student loans, and credit cards. Contact us today to learn how we can help you budget and save for inflation.