Planning Around Inflation & Shortages
It could be a bumpy ride in the months ahead when it comes to your purchasing power. Anticipated shortages of items ranging from household cleaning products to Christmas trees make it an uncertain time when it comes to money matters. Paying more for food, gas, autos and a variety of other goods and services affects all of us, but with a little planning and intention, it is possible to prepare and manage household budgets to smooth out a potentially difficult ride.
1. Start with Priorities
One of the best ways to cope with inflation is to take the time to prioritize monthly spending. A spending plan helps to ensure that what you spend matches what you make each month as prices rise. For instance, if you set aside a specific dollar amount for monthly gas purchases, you can juggle other expenses as they come up by sticking to spending limits.
Knowing spending priorities can also help reduce the potential of adding to credit card balances.
2. Set and Stick to a Shopping List
Once you know what you must spend and have a budget, take some time before each trip to the store to list out your purchases.
Using a shopping list and sticking to it can be the most powerful way to manage finances in the face of rising prices.
Take inventory of what you already have specific to items low in inventory or high in prices and make a list of what you need. If possible, plan out the meals you will prepare based off what necessary ingredients you already have. Then, use your list to find the best deals across different stores.
3. Stay Flexible
Making your list sets you up to stick to it – but stay flexible. You might have to go to a few stores for the best sales, coupons, and specials, especially on products that are low in inventory. You may find out that by splitting your shopping list up between several options gets you the best deals. Check dollar stores for deals on household items and within reason, stock up on those items if possible. Bulk retailers or wholesale clubs, like Costco or Sam’s Club might be a good way to stock up on quantity for a lower per-use cost.
When shopping online, compare the shipping and delivery costs versus the fuel costs of buying those same items in person.
Be flexible when it comes to timing your purchases:
Do you really need that item right now?
Is it possible that the item will go on sale soon?
Will current inflation and price fluctuations act in my favor?
Wait for something to go on sale to buy it. For something that you could wait on, you can save money by waiting for it to be discounted.
A time of inflation, as well as shortages for everyday items, can cause stress and worry.
