Inflation can be a nightmare for Americans who have already stretched their dollars to meet basic needs. What happens to those dollars when they lose value?
They will have to make hard trade-offs. Instead, AmericansYou may have to decide between paying rent or buying enough food.
Inflation is most severe for families with low savings and little back up. According to Phuong Luong (a certified financial planner based in Massachusetts and the founder of Just Wealth, a financial education company, their limited financial resources can be due to historical inequality. Inflation can make basic necessities unaffordable for families with limited incomes.
It is possible that you will need to make ends meet to provide for your extended family. You might need to travel to the grocery or doctor’s offices in order to make ends meet.
Luong stated that “your proximity to people who have resources and people with wealth will be different depending on your location and who you are.” “Expenses and budgeting are only part of the larger context.”
These are some ways to combat high inflation in times when money is tight.
Cover all expenses that allow you to live safely, including housing costs and utility bills. Make sure to pay for expenses that will allow you to work, such transportation fees, your cell-phone bill, and child care.
Next-level priorities include those that can cause major consequences if not paid. Think about taxes, child support and insurance.
You should aim to make the minimum payment for credit cards so that you can afford it..
Make use of local resources
You can find help if you are having difficulty paying your bills. Luong suggests Findhelp.org as a resource that lists local programs to assist Americans in reducing their costs across a variety of categories, such as food and medical care.
Call 211 or visit 211.org to look for assistance related to housing, health, food and emergency expenses.
Asking questions is a great idea.
It is possible to save money by calling your bank, lender, bank, or cell phone provider and asking for help.
Emlen miles-Mattingly said that these companies have become “a little more sympathetic” because of the pandemic which has affected so many people. Emlen is co-founder and CEO of Onyx Advisor Network. This Sacramento-based network provides financial advice to minority clients.
They might offer to suspend or lower your payments, forgive late bills, or even forgive you. They might even lower your interest rates.
Connect with your local community
“Community is going to help us overcome our financial difficulties,” Dasha Kennedy, an Atlanta-based financial activist who founded The Broke Black Girl, which provides financial education for African-American women.
Leaning on — or supporting — your family members, friends and neighbors can help ease costs. Kennedy suggests that you move in with your relatives to lower your housing costs. You could also pool your resources and share a vehicle or split the payment for a large expense.
Look into libraries, recreation, and community centers to make connections with locals who are supportive of your cause. Or connect with neighborhood groups on social media platforms like Facebook and Nextdoor.
Local community members may post information on free resources or share their experiences with saving money.
Monetize your skills
Diversifying your income stream may help you cover higher costs. Kennedy recommends that you try to increase your earnings through your employer if you are already employed. Consider working overtime and negotiating raises or role changes.
Or explore side work — with caution. You could lose your time with a lot of online gigs..
Kennedy stated that “it’s high-time for frauds and scams.” Listen to your gut and read reviews. For tips on avoiding scams, check out the Federal Trade Commission or Better Business Bureau websites.
You can sell your handmade goods on Etsy if you are creative. Ebay and other sites allow you to sell unwanted household goods or clothing.like ThredUp.
Source: CBS News