Home Economics: Budgeting in a Time of Inflation

As inflation hits home and prices continue to rise, budgets must be adjusted. Whether in good times or bad, keeping track of your money is always a smart move. Everyone needs a budget. Although the belt-tightening may be uncomfortable, it doesn’t have to be painful. Sometimes, the best advice on spending habits is just common sense.

Monitor your spending to see where your money goes. This strategy will help you stay conscious of your budget and see where you may be overspending, where you need to cut back, or where you need to make a change. Here are some ideas:

1. Those Fixed Expenses Can Be Loosened (You’re Not Stuck with Them) When was the last time you really perused the bills for your phone, credit card, cable provider, power company, etc.? This activity may not be fun, but it can be worthwhile. What are your providers charging? Who are the competitors who really want your business? What deals are on offer? If you do serious research and find a good alternative, you could save some money. Remember, when you contact your current provider to terminate the relationship, it doesn’t have to be the end; they might match the lower price you found to keep the relationship with you.
2. Watch Those Impulses (Do You Really Want to Buy That?) Impulse purchases can be one of the biggest obstacles to saving money. It’s easy to fall for a well-targeted online ad that seems to know what you want before you do. But instead of clicking on the ad, take a screenshot of it. The same goes for your offline life, with something in a brick-and-mortar store your heart tells you just can’t do without, while your brain shouts that you can; take a photo of it on your phone. Create a folder on your desktop or phone to store these images. After several days, open the folder and see if you still want to make the purchase. You may be surprised what no longer interests you after waiting.
3. Try Another Grocery Store (How Can They Sell Scallops That Cheaply?) Many people shop at the nearest large supermarket because it’s convenient, without considering an alternative. But there are other supermarket chains seeking to gain market share from the more upscale chains, such as the Germany-based discounters Aldi and Lidl. Every supermarket does not sell everything at the same price. Look around; the local market may be a bargain for fish, but the organic market a couple of blocks away may be best for produce, while the bakery down the street may have better bread for a nicer price. Even if you prefer one-stop shopping, try to find a stop that charges less than its competitors.
4. Check Out the Generic Store Brands (Always Read the Label) This strategy is easy to implement; most supermarkets want you to buy their brands. When shopping for staples such as flour, sugar, milk, juice, and other everyday products, a store likely has its own label, and the prices should be cheaper without loss of quality.
5. Follow the Seasons (Is It a Good Time for Strawberries?) We have become used to getting the produce we want anytime we want it, regardless of the season. Do some online research. What crops are coming into season in your local market? Focus on vegetables when they are plentiful and cheap.
6. Rediscover Your Freezer (Put Something Away for Later) When buying meat or fish at a good price, get some extra and put the goods in your deep freeze. It’s like suspended animation, letting you plan in advance and take advantage of bargains. You can also freeze vegetables. Since many are fresh during the summer, that is a good way to get fresh vegetables all year long. Keep a list of what you have got and don’t let things stay in the arctic conditions too long (say, more than a year—three to six months is more like it).
7. Try Some Home Brew (Now That’s Great Coffee!) There seems to be a coffee shop on every corner. So convenient, and so pricey. But you can make wonderful coffee at home for a lot less money. Here’s the java jive, in three steps:  First, brew the coffee you love. Then pour it into an insulated cup or vacuum flask. Third, take it with you and enjoy when and where you want to.
8. Be a Little Less Sweet (Drink Tap Water) It’s probably always a good idea to imbibe less of empty-calorie sugary drinks and keep a refillable container of nice refreshing water from the tap. Use a filter; that’s what the bottled-water firms do. Not only will it save on your grocery bill, but it is also better for your health (and you won’t be adding a plastic bottle to the pile).
9. Be a Smart Shopper (Prepare to Save) Always shop according to a list to reduce impulse buys. Use coupons while shopping at grocery stores. Shop discount stores (you’ll see some surprising prices). Don’t forget to check sales.
10. Cut the Virtual Cord (Don’t Let the Streamers Carry You Away) During the pandemic, we relied on entertainment delivered through tablets or smart TVs. Are you using all those subscription services now? What subscription services do you carry? How often are you using them? Are there any you simply forgot about? Look carefully at where you are spending money on streaming services. If you are not using any very often (or at all), this is a great time to drop. You can always come back later if you choose.
11. Review Your Insurance Coverage (Boring, But Very Important) In this case, we are talking about auto, homeowners, and health insurance. These add up and are often forgotten about. What are you paying? What are your alternatives? An insurance agent should understand your needs. A good agent carrying products from different companies can likely provide you with money-saving alternatives.
12. With Prescriptions, Look for Alternatives (Still What the Doctor Ordered) When prescribed a new medication, always ask your doctor about price, or double check when picking it up at the pharmacy. Chances are, if you recognize the name of the drug from a TV commercial, the pharmaceutical firm behind it has put a hefty price tag on it to recoup the costs of development and advertising. Always ask about generic drugs instead of branded ones. Unfortunately, once a new drug is approved, the FDA will not approve any generic version, regardless of the time remaining on the new drug’s patent. This regulatory exclusivity typically runs for at least six years. Still, your doctor’s office will sometimes either be able to provide samples or arrange for a less financially onerous way to get the new prescription.
13.  Leave Your Car Parked (Catch a Ride with Someone Else) We’re not talking about hitch-hiking. There are many transportation alternatives to your buggy. Ridesharing services are rising in popularity for a reason; it’s convenient and puts the mileage of someone else’s car. When possible, look into public transportation. You don’t have to be in an urban environment. There are daily bus routes even in rural places.
14.  Make Your Home Your Favorite Restaurant (Party at Your Place) It’s a lot cheaper to eat in than dine out. You can set the menu and the price, and you’ll never need to ask what the soup of the day is. Instead of meeting somewhere for meals, invite friends and show off your culinary skills. (Don’t have culinary skills? There are plenty of ways to learn, from cookbooks, recipes in the news, or TV chefs. It’s fun!) Or even better, encourage a potluck and take turns each week at your respective domiciles. The only thing better than showing off your cooking ability is enjoying someone else’s.

Conclusion

It is important to understand where your funds are being spent and make adjustments where appropriate. Individually each of these items may not seem to amount to much but combined it can make a significant savings in your operating budget without changing your lifestyle significantly.

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