For the past couple of years, it seems like the cost of nearly everything has risen! Whether you are headed to the grocery store, the gas station or a car dealership, you will see that the costs have gone up. Since you are likely reading this because you want to learn how to manage your money well, I will share with you some of the strategies that are helping my clients weather this storm.
But before we jump in, I do want to share a fresh perspective on rising prices. The famous hedge fund manager and investor, Ray Dalio, was quoted recently saying, “When I hear the problem of inflation – which is rapidly rising prices – I’m struck that it’s typically spoken of by people complaining that they have to pay more, without realizing how lucky they are because they are still getting what they want by bidding it away from those who can’t get it, which is a much worse problem. For example, think about what food price inflation means for those with adequate income to still buy food vs. those who don’t get it.”
Although rising prices can sting, it is worth noting how fortunate we are to be able to handle these changes! So even if we are lucky enough to be able to afford items that have gone up with inflation, your budget likely needs to be revamped to reflect the rising prices.
Here are the top three strategies my clients are using to keep their budget in check:
1. Focus on what you can control.
If you have a personal relationship with your UPS Delivery person because of your Amazon habit 😂, you will likely want to find ways to curb your shopping. For most of us, we can easily lower our costs by reducing our online shopping.
2. Revise your budget to reflect new prices.
Many families have had to change their monthly allocation for groceries and transportation (including gas). These prices have gone up considerably in the past year, and your monthly budget should reflect the new prices. Even my clients who are completely “dialed in” with their finances are now having to change their budgets to deal with our current reality.
3. Review your Budget for recurring expenses that can be reduced or cut.
In our subscription age, it is very likely that you still have recurring expenses that you may have forgotten about, or that aren’t worth your money right now. Take time to review all of the charges that are hitting your bank or card. Are there places that you can cut?
In addition to cutting expenses, you could also consider looking for ways to bring in additional revenue for your family. Whether this is selling items in your garage on eBay or picking up some part-time work, you can find small ways to add more cash flow to your budget.
This summer I am opening up two more coaching time spots, and I would love to help your family get off the paycheck-to-paycheck cycle. If you are looking at rising costs, and need a bit more clarity, support or accountability–simply set up a free call here, and I will be happy to help. There is absolutely no obligation with this call.
