Every dollar counts.
We have been facing a period of inflation for quite some time now. Interest rates have escalated, the price of groceries and fuel have increased significantly as well as the price of other necessities such as housing whether rented or owned. Despite the general increases in prices, we should strive to save something. In fact, saving something should be a part of your goal no matter what economic season we are in. Of course, during the inflationary period, the amount you saved may be less because you must spend more on your needs due to the increase in prices.
In this article, I will offer some tips on how you can save during inflation. Some of these tips will require some sacrifices. Remember though, that this inflationary season is not permanent but while you are in it, still save something.
- Do not focus on brand – shop generic.
I know some people believe in their brand and so they spend a lot of money on branded clothing and food. However, during inflationary, do not focus on brand, you can achieve the same desired results from generic stuff. In fact, you will achieve more because you will save more because normally generic items are priced lower than branded items. One thing I also learned is that some of these branded items are not really branded, they are some of the same generic items that you refused to buy. Some suppliers buy the generic items and rebrand them as branded items.
- Take advantage of the sales but make sure you are getting a sale.
Whenever there is a sale, take advantage of it by buying the items during the sale period. However, be very vigilant though because the sales can be misleading. Make sure that you are getting a deal. You see sometimes merchants say that there is sale but if you were to check the prices a few days before the “sale”, you will realize that the sale price was already the original price.
- Shop around
Shop around and you will find some of the same items at different stores for a lower price. Control yourself so that you do not have to buy everything from one store. Tell yourself, this must be cheaper somewhere else.
- Don’t buy too much.
Sometimes we buy too much of something and we end up not using it. Therefore, we are wasting the items. For instance, some places have small lunches and large lunches. Buy a small lunch if you know you are not going to eat a large lunch. Only buy a large lunch if you will eat it for lunch and dinner or share it with someone. Also, you may go to the grocery store, and you may purchase large quantities of items, but you don’t need all of them and some of these items may expire and as a result you lose money.
- Forgo of that overseas vacation
Some of you want to have a vacation, but you also want to save for that investment. Having an overseas vacation is something you need to reconsider. Take your vacation, get some rest but stay home and save your money. Vacations can be very costly. That money that you were planning on going on vacation, save it for something else.
- Force yourself to put aside something each week or month.
Some of the items you used to purchase may have doubled during the inflationary period. If that is the case, still save something. If you were saving $50 a month, then try and save $25 a month. Personally, if I were you, I would still force myself to save that $50 and review other expenditure that I can cut back on.
- Cook and stop eating out.
Some of you eat out every day and don’t even realize how much you are spending. If you are single, it may be cheaper for you to eat out but if you have a family, it is best to practice cooking at home and taking those meals to work for lunch.
- Shop for some items while you are away.
I do believe in supporting the local market, however, if you do travel abroad, then buy some items while you are abroad and ship them.
- Monthly payment plan
Work out a monthly payment plan with your banker or insurance company so that you can still put aside some savings. In fact, you should also shop around with other banks and insurance companies and see if you can get better rates. No matter what rate you get, work out a monthly plan so it does not hinder you from saving.
- Open a business.
Despite the inflation, there is still a demand for goods and services. Establish that business and the profits you make from that business, use some of that for savings.
- Downsize your apartment.
One of the most expensive things is the rental of accommodation. If you are in a 2 bedroom, you may have to live uncomfortably for a while by living in a 1-bedroom apartment. It is a sacrifice, but you need some savings. If you have a house, consider renting a room in your house and use that rental income for savings.
- Cultivate your gift.
Everybody has a gift, and your gift is not necessarily your job. Cultivate that gift and make money from it. You can use that for savings. Do not bury your gifts.
- Travel less
With the advancement of technology, you do not have to travel too everywhere. Practice using technology such as zoom etc. This will help you and your company to save money.
From time to time, you need to reassess your financial condition. Once you have done that and developed a savings plan, then you need to control yourself to ensure that you stick to your plan. If you don’t have the discipline to save, talk to someone who can guide you and help you. As I always tell individuals, open a bank account with a bank that you do not use and ask your employer to put a portion of that money into that account. Don’t keep the card.