Can you manage with increasing living costs?
According to the most recent inflation statistics, rising living costs are spreading throughout the economy. This is putting a strain on the budgets of many Americans.
According to the government’s most recent Consumer Price Index (CPI) report, prices increased by 6.8% in November when compared to the same month the previous year. It marks the greatest inflation rate in over four decades.
This is a significant increase over the 1.4 % average inflation rate seen last year when the COVID-19 pandemic kept the majority of the population at home.
The increase in costs is primarily due to increased demand and supply-chain constraints caused by COVID-19. It has resulted in higher food and energy prices in recent months. However, according to this month’s figures, core inflation, which excludes those unstable categories, is also on the rise, with a 4.9% increase.
COVID-19 has people feeling budgetary pinches
People on the street have been feeling the pinch for some time. The results of a nationally representative survey conducted by Consumer Reports in October of more than 2,000 adults in the United States revealed that 92% of respondents had noticed higher gas prices while shopping. More than six out of ten reports that the increases were “substantial.” More than 80% of people who buy food believe that prices have increased, with 53% claiming “significant” increases in price.
For shoppers, higher prices necessitate more planning. In some cases, it requires a complete redesign of their financial situation. This may mean finding ways of bringing in more money and looking at new lines of credit. In this scenario, it is imperative to compare credit.
According to Douglas Boneparth, a certified financial planner and the president of Bone Fide Wealth in New York City, “keeping a cash reserve can be beneficial if larger bills or unexpected expenses come in.” When navigating any financial scenario, keeping track of your cash flow is quite beneficial.
Main living cost expenditures
Here’s what to look for in some of the main expenditure categories. There will also be some suggestions for cutting your expenses.
Food
Take advantage of any food-saving discounts to stock your freezer and pantry. This will help you keep your food spending under control. In addition, sticking with bargain retailers such as Costco might save you a large amount of money.
Gas
Consider filling up your tank in areas with cheaper gas taxes if you are planning a road trip. It is possible to save $5 to $10 a tank of gas if you check gas prices ahead of time. Finding lower-cost options may be burdensome, but it doesn’t have to be with GetUpside. This app will help you find the lowest gas prices with the availability of cash-back offers when using a debit or credit card. Also, by driving smoothly and adhering to posted speed limits, you can get even more mileage out of your tank.
Internet, phone, and TV
Some low-income households may be eligible for discounts on internet access and equipment through the Emergency Broadband Benefit program. If not, you can compare internet providers near me to find the best deals to help you reduce your bills and still get the service you need.
And, despite the fact that streaming options are becoming more expensive, you can still save money by getting rid of cable options. You could also try negotiating with your service provider.
Cars
Prices for new vehicles have increased by 11.1% in the last year, primarily as a result of pandemic-related plant shutdowns and a scarcity of computer chip supplies. The price of a used car has increased by 31.4 % in the last year. Generally speaking, there is the opportunity to save as much as 10% or more on some vehicles if you negotiate. Keep in mind that you may be able to collect more money for your trade-in model than you anticipate.
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