We Can Fight Inflation

We can make wise financial choices and avoid pitfalls in spite of inflation.

Inflation is something that impacts everyone deeply. We have no control over inflation. Inflation is not going anywhere. However, we do have control over our choices and reactions to inflation.

Sticking to a realistic budget is vital during times of inflation. It is unfortunate that you almost need to plan for the unexpected. You especially need to allot more money in your budget for food, gas and utilities. You may have to make adjustments to your budget and cut out extra discretionary expenses, like recreational and leisure activities. If you find you are coming up short in funds , you may need to cut subscriptions and spa visits temporarily.

Inflation requires us all to plan ahead. We need to focus on the extra expenses, like taxes and Insurance bills. I plan on spending significantly more for extra bills and year end bills than I did last year.

Do not fall into a pit by using credit cards to cover costs related to inflation. Acquiring more debt when prices are higher sets you back even farther . Credit cards are never a solution and will create a deeper problem. The main problem is you are paying significantly more using interest which does nothing to resolve the issue of inflation. So if you do not have cash to purchase a desired item, it is best to not purchase it.

It is also dangerous to withdraw your investment income you have set aside for retirement during inflation. It is unwise to take hard earned money from 401 K or Roth IRA to cover every day costs prior to your age of retirement. Withdrawals from retirement accounts come with a costly penalty and it is hard when repayment is required. Again, early withdrawals from retirement accounts do nothing to resolve inflation and will leave you without needed income during the time when you really need it.

Acquiring more debt and taking money early from retirement accounts and are two costly mistakes that people make during inflation. Be wise and stick to a planned budget , which is the biggest key to success in fighting inflation. Reach out to me for a session at www.peacefullifefinancial. for help with a budget. Karen Skelton Money Coach