Inflation is here and it looks like it’s not going away anytime soon. Here are 4 ways to combat rising inflation as we kick off a new year:
1) Re-Examine Brand Loyalty
Consider re-examining your brand loyalty. Part of the reason consumer goods are higher in price is due to global supply chain issues. However, some businesses are more nimble and innovative than others. Some will come up with alternatives, instead of simply passing on the full price increase to their customers. So if you have been buying something for what feels like forever, without considering other brands, now is the time. This could be a great opportunity to switch to a local business, or one that aligns with your values.
2) Do A Home Energy Audit
If you own a home, schedule a home energy audit. A home energy audit is an assessment of your home that takes a look at current energy consumption and then identifies changes you can make so your home is more efficient. This should reduce your utility bills and is better for the environment!
What you pay for a professional energy audit can depend on the company and the size of your property. That being said, do your research – some utility companies, nonprofits or governmental organizations specific to your local area may offer free energy audits.
It’s hard to know exactly how much you will save on future energy costs but you should be able to get an estimate from your energy auditor. With that estimate you can do a calculation to determine when you will breakeven from the cost of the work, and then start to save by staying in your current home. It could also be seen as a plus when you sell.
3) Make Investing a Habit
If you are not regularly investing, now is the time! The S&P 500 rose 26.89% in 2021, marking the benchmark’s third straight positive year. This growth is much higher than inflation, and it does not require investment skill to invest in index funds that follow the market. Even if you put $20 a month towards investing, making it a regular habit with an auto transfer can be life changing. Once you start to see your money grow, you can build confidence and increase how much you invest. Investing in the market is an excellent way to combat rising inflation from an offensive position.
4) Buy Less Stuff
Lastly, buy less stuff. This may seem very obvious, but really take a moment next time you add something to your cart on amazon. Do you really need it? I have found I can do with a lot less stuff if I take time to sit on it, and not hit buy right away. Also buy nothing groups are a great way to get some of what you need for FREE.
I’d love to hear from you, which of these are you going to try this year?