Retirees living on a pension and others who rely on a set amount of income every month will likely feel inflation—fast. “Those living on fixed incomes may see their purchasing power decrease during periods of high inflation,” Janet Alvarez, executive editor of Wise Bread, told The Epoch Times. A budget that worked well in the past might be stretched as prices rise across the categories of expenses, including gas, rent, and groceries. “Taking on new debt, such as a mortgage, may be more onerous,” Alvarez said.
If you and your family depend on a fixed income, there are several strategies to consider that may help lighten the impact of inflation. Following are ways to maintain your current lifestyle and carry on, even as prices continue to rise.
Evaluate What You Have and Need
Take an evening or weekend to decipher your current financial situation. Look at what you have in cash, savings, investments, and retirement accounts. Review what your expenses have been in previous months and evaluate where the price increases are hitting your budget. Also, reflect on your household needs now and in the past few years. “Your expenses may not be consistent year over year,” Marcy Keckler, senior vice president of marketing and financial advice strategy at Ameriprise Financial told The Epoch Times. You might find you can cut out certain memberships, subscriptions, or services you no longer need.
Revamp Your Grocery Shopping
Rather than going to the same stores to buy regular items week after week, spend an afternoon or weekend in other shops to compare prices. “You may find that meat is cheaper in one place, and produce is cheaper in another,” Lisa Thompson, savings expert for Coupons.com, told The Epoch Times. You could also discover warehouses like Sam’s or Costco offer better prices for bulk goods. If your household consists of just one or two people, you might try shopping at these warehouses and then sharing the big bulk products with another person or family.
Before heading out for the store, make a list so you know just what to buy. You might also look at store flyers to see what’s on sale that week and plan your meals to use those ingredients. Also, spend some time looking at apps and websites that offer coupons or deals. You’ll be able to receive further discounts or get cash back on your purchases.