Fighting Inflation: 3 Ways to Save Money and Stay Positive

Let's talk about inflation, what it's costing you, and ways to save money, even with the rising prices. Today, I'll talk about a topic that you're probably hearing about all the time in the news and online: inflation.

What is inflation?

The rate of inflation, the way that they calculate it, is how much everything is rising in price from this calendar month to the calendar month of the prior year.

So, for example, from May of 2021 through last month, you would have heard that inflation was averaging at 7%.

Now, in June, they're saying that it's actually 8.6%, but that doesn't mean that everything has gone up 8.6%. That's just an average that they're looking at.

Stacks of coins

The three topics I want to talk to you about today are groceries, gas for your car, and utilities because those are the three areas that I'm feeling the most and my clients are feeling the most. I want to talk about it.

1. Groceries

They're saying that the cost of milk, eggs, fish, chicken, and meat has gone up; those categories alone in groceries have gone up 14%. They're saying that the average cost of groceries has gone up by 20 %, and honestly, that's what I'm seeing.

A few years ago, I was spending between $2 \80 and $290 a week on groceries to feed my family of five. Once I started meal planning, which is such an important tool to use to keep your groceries as low as possible, within a few weeks, I got that $280 and $290 down to $180, and that saved my family over $5,000 that year, which paid off our first credit card. That's why I am so passionate to talk about meal planning.

Now, my 180 is no longer 180 because of the rate of inflation. I'm definitely feeling it. That 20%, certainly.

So, 180, I've had to bump my up to 225, and when I say my 180 is now 225, I mean it is not one extra item in groceries I purchased, yet because of inflation, my grocery prices have gone up by $45 every week, or $2,340 at the end of the year.

And that's without adding one extra item to my groceries simply because of inflation. Meal planning is such a great tool, but it is also vital for you to know where your money is going.

2. Gas prices

Gas prices are a little tricky. We're all feeling it, but when you hear, as you know, gas prices are soaring, and it's gone from this to this, I want you to keep something in mind. Again, inflation is from this calendar month through the calendar month of last year. So this June to last June.

Filling car up with gas

Now, remember where we were last year, especially when it came to gas prices. Because so many people were forced to work from home, not many people were driving. And because there weren't many people driving, the gas stations and the oil companies had to reduce the price of gas in order to end up pretty much making a profit at all, right?

Because when you have an excess of something, but you don't have the demand for it, you're going to have to lower the price, which is what they did.

Last year, gas prices were at an all-time low of an average of $3.97. January of this year, it was up to $4.60, and now the average is $ 4.95. When you hear $3.97 and $4.95, you're like, oh my gosh, it went up almost a dollar. But take it into perspective.

Last year was an exception. I have not seen prices that low last year on gas since I started driving; honestly, they were so low. And now, of course, we're going to feel it. We're going to feel it so much.

I'm talking about sticker shock. So, going from such a low to now such a high, everyone's feeling it so much. But when you really take it into perspective, it's gone up less than 40 cents from January to now.

They're saying it's going to go up even higher. Because gas prices are up so high, that's like a domino effect on so many levels and so many things in our budget.

Because the supermarket can't get everything in stock because they pay for gas for their trucks, our groceries are going to go up a little bit more because they have to pay the gas prices. It's a trickle effect. But again, meal planning can help you save money on groceries.

To fill up my SUV, I know that back in January, it would cost me $55 to fill up my tank. Now it's at a hundred, which, again, what is it with the $45, right? So, let's say that I was filling up my tank once a week.

And now, instead of paying $55, I'm paying a hundred—$ 45 difference. $45 difference a week adds up to, yet again, $2 340. So, without adding an extra trip to my commute, by filling up my tank once a week, I am having to pay an extra $2,340.

Without buying one extra ingredient in my grocery list, it was $2,340.

So, right there, I am at an extra $4,680. That's inflation. That's why it's so important to know exactly where your money's going and why it's so important to have a budget.

3. Utilities

When it comes to utilities and service providers, I have two videos on my channel. One where I, with four phone calls, saved my family over $1,000 by negotiating down my service providers without changing my service. That's key. And recently, I shared a second video on how three phone calls saved my family over $700. So again, there are ways to negotiate lower bills. And there are things that you can do to save money on utilities.

Smart meter

It's so important to take control of it, get empowered about it, call up your service providers, and ask them to work with you.

3. Budgeting

People who I feel are going to be affected by inflation the most are those without a budget. When people hear budgets, they think of restrictions; they think of stress, anxiety, fear about money, and feeling like they don't have enough.

When you don't have a budget, and you don't know where your money goes, what happens there is you don't know if you are living above your means, and when you're living above your means, what that means is that you are actually going into debt every month because you don't make enough to pay for all of your spendings.

It's so important now more than ever because inflation, unfortunately, is just going to continue. The rates are going to continue to increase. The prices right now are going to continue to go up. So, if you don't have an eye on your money now, when are you going to start? It's so important to start now.

Ways to save money

I hope you've gotten some insight on ways to save money. What tips do you have to save money? Please share them in the comments below.

Next, check out my 4 Easy Hacks to Save Money on Credit Card Interest.

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