Currently, inflation is at an all-time high and is only expected to get higher. The economy particularly affects things like gas, groceries, and the housing market. While there is no real way to “beat” rising costs due to inflation, Branded Surveys has some excellent tips to help you save money and cut costs where possible.
Investing smartly is one of the best ways to beat inflation, which really just means you need to watch where exactly you’re putting your investments. Some ways to do this are diversifying your portfolio, avoiding risks, and putting extra cash in stocks.
Diversify Your Investment Portfolio
Diversifying your investment portfolio is one of the best ways to get solid and consistent returns on your investments. Diversifying your money means it won’t all stay in just one place, meaning you have less overall risk and a wider array of companies to spread your savings across.
Avoid Risky Stocks
Risky stocks are really appealing because they sometimes have a high reward for taking the financial risk. However, during times of inflation, risky stocks are not good to invest in because you also have a higher potential to lose everything you’ve invested. Instead, try investing in some bonds or mutual funds.
Invest Extra Cash in Stocks
If you have extra cash lying around, it’s great to invest that into the stock market during times of inflation. While it’s always nice to have extra money, what is even nicer is putting that money into a place where it can actually grow. Putting some spare cash into trustworthy stocks now can be an opportunity to earn interest and have slow, consistent financial returns.
Clueless about the stock market? Check out our post on investing for total beginners.
Weigh Any Real Estate Value
Tangible assets, such as real estate or other commodities, are essential investments to consider during times of inflation. Done correctly, investing your money into property during down times can be worthwhile. That’s because real estate assets tend to keep their value even during times of inflation.
Look for Tax Breaks
Research the kinds of tax breaks you can benefit from in your employment, education, and family structure, as well as your investment strategies. Adopt tax-efficient investment strategies, like moving assets between taxed and tax-advantaged accounts to earn the most money back during tax return season. At the very least, it can help you owe less to the IRS.
Grocery Reward Programs
Grocery reward programs allow you to earn points by staying loyal to one store and spending money there. By spending more money at your chosen store, you can earn points and save with cash-back or gift cards toward future purchases. This is one great way to beat inflation at the grocery store due to the rising food costs.
Gas Reward Programs
Gas reward programs are similar to grocery rewards, saving you money if you stay loyal to one specific chain or store. Depending on what card you use, the car you drive, and how often you fill up, you can save money on gas purchases, car washes, or convenience store purchases. This is great for saving on the rising costs of gas.
Find Ways to Reduce Your Expenses
Another way to help fight inflation is to reduce your overall monthly expenses, leaving you with more cash to set aside. For example, start conserving water and energy, drive less, and do more meal planning. Stop spending money on things you don’t need. And shop around for the best price on things you need.
Research I Savings Bonds
I Bonds are great for those who are a few years away from a big purchase they want to save for. I Bonds earn interest (around 10 percent annually) for up to 30 years and can be cashed out after one year. If you choose to cash out in the first five years of your bond, you lose some interest, but they are great for those who are 5-10 years out from buying a home.
Track Your Spending
Tracking your spending is a great way to reduce your expenses and determine where your money is going. By doing this, you will start spending less money on things you don’t need and consider what is really essential for survival.
Find Ways to Increase Your Income
Another great way to beat inflation is to, rather than reduce spending, find ways to increase the overall income you bring in each month. There are many ways to do this, including asking for an inflation-based raise or finding a new job, but perhaps the most popular at the moment is starting a side gig or “side hustle.”
Start a Side Gig
A side gig is a secondary income stream that allows you to add to your monthly income. There are countless side gigs you could start, including becoming an entrepreneur and owning your own business. Right now, some of the most popular side hustles include food and grocery delivery, online tutoring, selling digital products, and doing paid online surveys.
Food and grocery delivery is a perfect side gig for those who own a car. All you need is an app like DoorDash or Instacart, a full tank of gas, and you can pick up and deliver orders for others for cash.
If you are a current student or have an excellent education, teaching children online through tutoring is a great way to earn extra cash. You can pick something you have a lot of knowledge in (English, math, history) and make a real difference in the world.
Selling Digital Products
Selling digital products is a huge trend right now, and you can use simple programs like Photoshop or Canva to create them. Some of the most popular digital products are prints, planners, calendars, and food diaries.
Paid Online Surveys
Branded Surveys is the perfect website to start your small side gig immediately. This site offers paid online surveys to its user base, connecting them with researchers who want to pay them for their opinions. You can earn between $.50 and $2 or more for every survey taken!
Open a Savings Account
Aside from the stock market, savings accounts are one of the best places to put your money because they will earn interest (in small amounts) over time and will not depreciate in value alongside inflation rates.
Research Past Inflation Trends
Researching inflation trends can help you identify some of the current and future economic trends. These patterns include things like the stability of the energy sector or the performance of the real estate market. Knowing these patterns will help you feel confident about where to put your money during these stressful times.
Postpone Big-Ticket Purchases
Some price hikes during times of inflation are temporary, so in many cases, it can be worthwhile to hold out on big purchases such as used trucks and cars, appliances, and more. For example, during the winter months, the demand and cost of raw materials for remodeling are expected to cool down, so it can be good for your wallet to wait certain things out.