How to Combat Inflation in 2023

Inflation peaked at more than 9% in 2022, and we’re heading into 2023 with numbers almost as grim (7.7% over this time last year). This unprecedented increase in the cost of living is hitting our wallets at almost every transaction, but The prices of food and gas — two basic expenses we need to survive — are especially high.

So how do we fight inflation? The easy answer is to cut expenses, earn more money and make smarter short- and long-term investments. But in a tough economy with mass layoffs and surge housing costs, how can we actually do this?

32 Ways to Fight Inflation in 2023

Experts at the Federal Reserve are predicting a 3.1% drop in inflation in 2023, and Morningstar has an even brighter outlook: an average 2.6% inflation rate between 2022 and 2026, just 0.6% over the 2% target set by the Federal Reserve.

That would mean the rising prices in 2022 represent the peak of this spike, and we’re on our way down.

But just how fast inflated prices will fall is up for debate. In the meantime, American families are looking for ways to cut expenses and earn more money.

Here are 32 ways you can combat inflation until prices drop:

1. Make a Budget

The first step to cutting back expenses? Understand how much you’re spending now.

Create a monthly budget that accounts for all your necessary expenses and discretionary expenses. Then you can pinpoint specific spending areas — like grocery shopping, dining out, subscription services or utilities — that are potential candidates for cutting back.

Not sure where to start? Check out our step-by-step guide to building a budgetor download one of these top budgeting apps.

2. Pay Down Your Debt

The higher inflation gets, the harder it will be to pay off high-interest debts. As much as you can, put extra cash toward paying down debts, starting with the loan that has the highest interest rate.

If you’re struggling with multiple payment dates and interest rates, think about a balance transfer…

Source link

Recommended For You

About the Author: News Center