High Inflation May Be Here To Stay: 5 Money Moves To Keep Financially Ahead
Inflation is still high and not likely to come down anytime soon, as reported by USA Today. But instead of risking falling behind, what if you could turn this economic challenge into an opportunity to keep (or get) financially ahead?
From tapping into the best budgeting tools to smart investment moves and even bringing in extra income, here are ways to not just cope, but potentially thrive in today’s economy.
Find Out: I’m a Self-Made Millionaire: Here’s My 4-Step Payday Routine
See More: 4 Genius Things All Wealthy People Do With Their Money
Establish and Follow a Budget
If you don’t have a clear budget you’re following, now’s a great time to establish one so you can save money even as costs remain high,” said Todd Stearn, founder and CEO of The Money Manual. “If the idea is overwhelming or you just aren’t sure where to start, budgeting apps like Rocket Money, Simplifi and YNAB can help.”
Stearn said you can use these apps to track your progress, including how much you’re saving toward goals. “It’s likely to be more than you expected, which is fantastic motivation to continue,” he said.
Explore Next: Net Worth for US Families: How To Tell if You’re Poor, Middle Class, Upper Middle Class or Rich
Invest In CDs
Stearn recommends shopping around for the best rates. He said the top CDs with terms around one year are offering rates of over 5%. He explained that over 5% is a great rate to lock in if interest rates do drop during the term.
“One year is also a short enough term that you’re unlikely to see rates rise while you’re locked in to the point where you’re losing money with these CDs,” he said. “This is especially true considering that the Federal Reserve just indicated that a rate hike anytime soon is unlikely.”
Transfer Your Credit Card Balance
“As interest rates remain high amid inflation, carrying a credit card balance is costlier than ever thanks to interest rates hovering around 25%,” said Andrea Woroch, a consumer and money-saving expert. “As these fees pile up, debt grows and becomes harder to pay off.”
Woroch suggested saving money by transferring your balance to a zero balance transfer card. She said to look for the longest no-interest period — some offer up to 21 months — which will give you more time to pay down your balances with no interest.
Get a Side Hustle
Woroch said that increasing your income is the best way to survive inflation and afford a higher cost of living without digging yourself into debt.
“Though getting a raise or better paying job may not be options at the moment, you can find flexible side hustles that allow you to work as much or as little as you can each month, allowing you to boost your cash flow to pay higher bills,” she said. “Plus, many you can do right from home.
“For example, you can earn up to $1,000 a month by pet sitting through sites like Rover.com, where it’s easy to sign up and create your own schedule. Virtual tutoring pays $20 to $50 per hour and is easy to do from home, too,” Woroch said. “Otherwise, consider renting things you don’t need or use. You can rent your car when it’s not in use via Turo, rent baby gear you don’t need via BabyQuip or rent out just about anything you own to others in your community via RentMy.”
Move Your Savings to a High-Yield Savings Account
“Not all is bad with higher interest rates,” Woroch said. “In fact, you can benefit from inflation by opening a high yield online savings account for your savings to earn more back. For example, Bread Savings is a high yield online savings account offering 5.15% annual percentage yield (APY). Interest is compounded daily and deposited each month so you enjoy extra cash flow passively. In comparison, traditional banks pay around 0.46% on average so don’t miss out on this free money.”
More From GOBankingRates
This article originally appeared on GOBankingRates.com: High Inflation May Be Here To Stay: 5 Money Moves To Keep Financially Ahead
