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 surging 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 budget , or 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 credit card or debt consolidation loan . 3. Share Resources with Neighbors
Getting to know your neighbors can be helpful and pleasant. While it’s nice to have someone to chat with over the fence, neighbors can also be a great resource in a pinch — as long as you help them when they need it, too: Need a cup of flour or a couple eggs? Don’t waste the gas to go to the supermarket; your neighbor may have food to spare.
Want a night out? Trade babysitting services with a trusted neighbor.
Tackling an unusual home renovation project? Don’t buy an expensive tool if your neighbor is willing to let you borrow theirs.
4. Become a Vegan
Food prices are up nearly 11%, outpacing most other areas of rising inflation. Meat’s actually not the highest increase (about 8%), but dairy products have surpassed 15%. The solution? Embrace the vegan lifestyle.
Most of us probably can’t give up our meat and cheese completely , but by reducing the amount we consume (try out “Meatless Mondays”!), we can reduce our grocery bills.
New to vegan cooking? Try these 10 cheap vegan meals at home. 5. Save Money on Produce
High food prices go beyond meat and dairy. The average price of fruits and vegetables is currently up more than 9%.But if the food pyramid taught us anything, it’s that fruits and vegetables are important. So how can you buy produce when inflation threatens your buying power? Purchase frozen and canned produce to avoid food waste; fresh produce is great but goes bad quickly. Only buy fresh produce in season when costs are lower. Getty Images 6. Buy in Bulk Buying in bulk can save you money, as long as you’ll use the items before they go bad. Focus on items like meat that you can freeze, frozen foods and non-food items like diapers and paper towels.When you buy in bulk, you’ll make fewer runs to the grocery store — a great way to cut down on fuel costs.Pro TipPay attention to the cost per unit. While bulk items have a higher price tag, you’ll usually get more product for every cent spent. 7. Cook What You Have in Your Pantry Another way to beat inflation at grocery stores? Don’t go every week.Your routine might include a weekly trip to the supermarket to stock up on food, but you might have enough in your fridge and pantry to last longer.For 2023, try the Pantry Challenge once a […]
source Ease the Inflation Squeeze: How to Combat Inflation in 2023
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