Inflation is still high and is not expected to decline anytime soon, as USA Today reports. But instead of risking falling behind, what if you could turn this economic challenge into an opportunity to stay (or get) ahead financially?
From leveraging the best budgeting tools to smart investing or even generating extra income, here are ways to not only cope, but potentially thrive in today’s economy.
Discover: I’m a self-made millionaire: here’s my payroll routine in 4 steps
Read more: 4 Awesome Things All Rich People Do With Their Money
Establish and follow a budget
If you don’t have a clear budget to follow, now is a great time to establish one so you can save money even if costs remain high,” said Todd Stearn, founder and CEO of The Money Manual . “If the idea is overwhelming or you just don’t know where to start, budgeting apps like Rocket Money, Simplifi, and YNAB can help.”
Stearn said you can use these apps to track your progress, including how much you’re saving toward your goals. “It’s likely to be more than you expected, which is fantastic motivation to keep going,” he said.
Explore Next: American Family Net Worth: How to Tell If You’re Poor, Middle Class, Upper Middle Class, or Rich
Invest in CDs
Stearn recommends shopping around for the best rates. He said the best CDs lasting about a year offer rates above 5 percent. He explained that a rate above 5% is a great rate to lock in if interest rates fall over time.
“One year is also a short enough term that rates are unlikely to rise as long as you’re stuck to the point of losing money on these CDs,” he said. “This is especially true since the Federal Reserve has just indicated that a rate hike in the near future is unlikely.”
Transfer your credit card balance
“As interest rates remain high amid inflation, maintaining a credit card balance is more expensive than ever thanks to interest rates hovering around 25%,” said Andrea Woroch, expert on consumption and saving money. “As these fees accumulate, the debt increases and becomes more difficult to repay. »
Woroch suggested saving money by transferring your balance to a zero balance transfer card. She said to look for the longest interest-free period – some offer up to 21 months – which will give you more time to pay off your interest-free balances.
Get a side hustle
Woroch said increasing your income is the best way to survive inflation and afford a higher cost of living without going into debt.
“While getting a raise or a higher-paying job isn’t an option right now, you can find flexible side hustles that allow you to work as much or as little as you can each month, allowing you to increase your cash flow to pay higher bills,” she says. “Plus, you can do a lot from home.
“For example, you can earn up to $1,000 a month pet sitting on sites like Rover.com, where it’s easy to sign up and create your own schedule. Virtual tutoring costs between $20 and $50 an hour and is also easy to do at home,” Woroch said. “Otherwise, consider renting things you don’t need or use. You can rent out your car when it’s not in use through Turo, rent out baby gear you don’t need through BabyQuip, or rent just about anything you own to others in your community through RentMy .
Transfer your savings to a high-yield savings account
“It’s not all bad with higher interest rates,” Woroch said. “In fact, you can benefit from inflation by opening a high-yield online savings account so your savings earn more. For example, Bread Savings is a high-yield online savings account with an annual percentage yield (APY) of 5.15%. Interest is compounded daily and deposited monthly so you can passively enjoy additional cash flow. In comparison, traditional banks pay around 0.46% on average, so don’t miss out on this free money.
More from GOBankingRates
This article originally appeared on GOBankingRates.com: High Inflation Could Be Here to Stay: 5 Money Moves to Stay Ahead Financially
yahoo
