Inflation Fighting Tips for Your Budget from the Pros at NASA Federal

Of all the problems that can befall an economy, inflation can be one of the toughest. It affects all aspects of the economy, including consumers and their purchasing power. As the price of goods and services rises during an inflationary period, the value of money begins to decrease over time, making it difficult and challenging to balance the current household’s budget and to save for the future. Even if we lived in a perfect world where all price increases were matched by an increase in nominal wages, families would likely still fall behind in their savings goals because their real wages would have fallen even further behind inflation.    

“To deal with unevenly rising prices and reduced purchasing power,” explains Farah Sadeghian, NASA Federal Member Solutions Manager, “employing inflation-fighting strategies often becomes necessary. The good news is that there’s actually a great deal consumers can do on this front.”

Check Your Current Household Budget and Compare It to Last Year

Start by preparing a spreadsheet of all your current monthly expenses, fixed and variable, and compare it to last year’s expenses for the same bills and purchases by looking at statements and bills paid last year. “Find out what the net increase in cost is of every bill and purchase,” says Sadeghian. “Decide where to cut, what projects to halt, and, if possible, increase income through things like side gigs or boarder rent to offset the increase in cost and possibly close the gap.”

Get a free budget analysis from a Certified Credit Counselor. NASA Federal has partnered with Balance Budget Financial Fitness Program. You can make a no-cost appointment with a financial counselor at your convenience by calling 1-888-456-2227. 

Reduce Rates on Debts

Debt consolidation allows you to combine multiple debts into a single payment with a lower interest rate or even a weighted average interest rate on current loans. In most cases, the resulting single monthly payment may create additional monthly cashflow. “Common methods to consolidate debt include balance transfers, combining multiple loans/credit cards into a personal loan with single monthly payment, and home equity loans or home equity lines of credit,” states Sadeghian. “But be sure to carefully consider the details of any consolidation loan, as these loans are not always right for every situation.” To learn more about your debt consolidation options with NASA Federal, visit nasafcu.com/debtpayoff today.

Complete An Energy Audit

Energy audits assess how energy-efficient your home is, so you know where to make changes. Starting points for conducting your own home energy audit include checking windows for potential drafts; inspecting your furnace, AC, and water heater thoroughly for issues; checking the insulation in your attic for gaps; making sure your fireplace damper is not damaged; and identifying phantom appliances and electronics so that you can unplug them.

“Energy audits can really pay off,” notes Sadeghian. “Believe it or not, you can save up to 30% on your energy bills by addressing the issues found during an energy audit so it should be one of the first items on your to-do list.”

Save on Car, Homeowners, Other Insurance Policies

One of the easiest ways to lower your costs substantially on insurance is by requesting higher deductibles. “For example,” states Sadeghian, “increasing your deductible from $200 to $500 could reduce your collision and comprehensive coverage cost by 15% to 30%. Going to a $1,000 deductible could save you as much as 40% or more.”

Eliminate Unused Subscriptions

With every dollar worth less, no one can afford to waste them. “Now is the time to get rid of those unused subscriptions,” advises Sadeghian. “Think magazines, streaming services, memberships…anything that may be lingering out there adding no value but draining your resources.”

Shop Strategically at the Grocery Store

Check your home food inventory before going to the grocery store, including your pantry and food storage. Take inventory of your freezer and refrigerator. Look over grocery store ads to see what is on sale and plan your meals accordingly.

Eliminate Food Waste

The only thing worse than spending more at the grocery store is watching those dollars disappear into the trash or down the garbage disposal. “When prices rise, it becomes more important than ever to eliminate food waste,” states Sadeghian. “So embrace those leftovers, freeze the excess, or share the bounty with those in need.”

Stock Up on Shelf-Stable Staples

Even with prices on the rise, there are bargains to be had. When deals pop up, it is time to stock up. Filling the pantry with pasta boxes, jarred sauce, and canned vegetables will be good for future finances, so clear some space and start shopping.

Experiment with Meatless Meals

With the price of meat rising faster than other foods, now could be a great time to embrace your inner vegan. “Of course, giving up meat entirely isn’t necessary,” states Sadeghian. “Start off with meatless Mondays. Even one meatless day each week can help reduce the size of your monthly grocery bill.”

Put Off Major Purchases

If you are contemplating a major purchase, ask if it is something you can live without. If so, putting it off until the worst of the inflation spike is over will likely result in considerable savings.

Seek Out Inflation-Friendly Investments

If extra cash is available to save and invest, looking for products that benefit from inflation is smart. “From government savings bonds that track the rate of inflation to stocks of companies with rising earnings, these smart money investments could be suitable for the short term and the long term,” states Sadeghian. “Be sure to consult a Financial Advisor at NASA Federal for the best options by scheduling a financial consultation.” To schedule yours, submit your request online.

Maximize Your Fuel Efficiency

Paying more for gas is definitely one of the most painful aspects of inflation, so finding ways to maximize fuel economy can have a huge financial impact. “Think about the way you drive as well as how many miles you typically travel,” says Sadeghian. “Are there other, less expensive transportation options available? If so, consider making the switch.”

We’re Here to Help

Of course, inflation is nothing new. It has been coming and going for decades. Nevertheless, whenever prices rise and making ends meet becomes challenging, it is easy to forget that inflation is temporary and fall into despair. That’s why it’s important to remain clear-headed about spending power and the many ways it can be maintained. “Solving the Federal Reserve dilemma or controlling the larger economy might not be an option,” jokes Sadeghian, “but the ability to make targeted changes to how you shop, drive, cook, and live your daily life will always exist. So don’t despair. Just commit to acting strategically.”

Indeed, it is possible to make the most of your shrinking dollars. If you need further assistance, please call us today at 1-888-NASA-FCU, extension 540. A Member Solutions Associate will be happy to assist you.