Monday, January 24

4 Expert Tips for Taking Care of Your Money During America’s Inflation

Before a inflation unseen in recent years, experts share tips to help you take care of your money this end of 2021 and above all that you be very careful with your economy in 2022.

And it is that in addition to health, economy It is another of the main issues that worries Americans, mainly after the United States government announced that inflation reached 6.8% in November, which represents the highest in recent years.

No doubt the Consumer’s price index It is seriously impacted on the population, so it is important to plan well the expenses that are planned to be made both in the short, medium and long term.

Factors are exacerbated

In addition to this situation, product prices are also being affected by shortages in the supply chain, which have increased prices.

Faced with this situation, financial planners shared advice with the site Fortunate to help consumers take action so their finances are not seriously affected.

Next we are going to share the advice of financial experts, who also warn that inflationary effects are not easily avoidable, but it is important to be moderate with household and family expenses.

Do not buy car

For Jay Zigmont, Certified Financial Planner (CFP) is not a good time to buy a new car, so the specialist indicates that if your car still works well and is in optimal condition, it is best to keep your unit and discard the idea of ​​acquiring a new vehicle.

“If your car works and you put it to work, then stick with it,” he says.

The recommendation is based mainly because the cost of new cars registered an increase of 11.1%.

Take care of investments so that they grow

Another advice from financial planners is to grow your investments, this is better, than having a savings account, says Matt Elliott, CFP, founder of Pulse Financial Planning.

And is that the low rates that have been handled in the United States, have made the situation of savers difficult, said the financial planner.

“Your cash in the bank earns almost no interest, yet the prices of everything you buy are rising. That can degrade your purchasing power over time if you don’t invest, ”Elliott said.

That is why the expert urges consumers who can invest, to do so in a diversified way, taking into account that there are investments that increase with inflation such as Series I Savings Bonds and Inflation Protected Treasury Securities (TIPS) .

Buy more vegetables

Without a doubt, the prices of edible products have suffered increases in recent months, mainly those derived from animals, indicated Financial planner Andy Baxley.

That is why the recommendation of this expert is to buy more vegetables, instead of products derived from animals.

“Experimenting with plant-based dishes is one way to reduce pain at the checkout counter. I encourage people to be creative with their budgets right now, ”advised the financial planner.

And it is that the increase in the price of meat has been 20.9% in the last 12 months, said the expert.

Spend less, if you can

Dana Menard, CFP and founder of Twin Cities Wealth Strategies, recommends that you start planning expenses, and if possible reduce them as much as possible, so that they do not affect the family finances too much.

Menard indicated that it is a good time to reconsider and reduce expenses, and always give priority to those that are undoubtedly necessary, such as money for housing rent or mortgage credit, electricity, water, etc., that is, basic services .

When needs start to cost more, discretionary spending should be reassessed so as not to neglect the things that are necessary”He advised.

Ask not to make impulse purchases and take stock of the subscriptions you have at home, and if you can better cancel them.

Matt Elliott, CFP de Pulse Financial Planning, indicates that although it has been managed that the increase in inflation is temporary, it is better to be cautious and take care of finances and economy.

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