Inflation is nasty. It’s one of the main reasons why stashing your cash under your mattress is a bad idea. With inflation, the nominal value of your money never changes. It’s the real value of your money that takes a hit. $100 a year ago is worth its inflation differential less today. At its most basic level, inflation measures the price increase of a standard basket of goods and services in the economy over time, typically a year.
That basket is known as the CPI (consumer price index). In August 2024, inflation increased 0.2%, but it increased 2.5% from August 2023 – August 2024. That means $100 back then is worth $97.50 twelve months on. This data is presented by the Bureau of Labour Statistics or the BLS. While the 2.5% uptick in inflation is the smallest rise since February 2021, it compounds the pressures currently faced by consumers.*
Inflation takes on many different forms. Some of these include demand-pull inflation, when the demand for goods outstrips the supply, causing prices to rise. Galloping inflation occurs when prices rise sharply, well above 10% yearly. Cost-push inflation is another common culprit. It occurs when the cost of production inputs increases, pushing up the prices of finished goods and services.
Scarcity often raises the prices of raw materials, and ultimately, the costs are pushed on to consumers in the form of higher prices. We are all victims of inflation. Nobody can escape the ravages of this economic phenomenon since everything we buy and every service we use is subject to inflationary pressures. For many of us, the effects of inflation are felt in the everyday goods and services we buy and use.
Grocery stores, restaurants, take-outs, filling up our vehicles at the pump, etc. Ongoing price rises make it difficult to budget effectively and pay for essential goods and services, let alone save up for a rainy day. For many of us, there appear to be limited – if any – ways of combating these runaway prices. Fortunately, help is at hand. The effects of inflation can be curbed in conventional and nonconventional ways. We begin with the nonconventional ways and work our way down:
Restaurant Discount Apps
Technology is a beautiful thing when used for the social good. Restaurant discount apps can mean the difference between paying the sticker price or less, for everyday groceries, restaurant purchases, takeout, gas station purchases, etc. Cutting-edge innovation allows for substantial savings to be generated in the form of long-term rewards on routine purchases. Customers can download and install free apps to enjoy real-time cost-saving benefits. For example, one such restaurant discount app features over 50,000 restaurants, grocery stores, and gas stations in its network.
This means local customers can choose from various businesses, retailers, and wholesalers. Each one offers competitive rewards based on customer preferences. Innovative technology designs rewards for customers based on their existing purchasing behavior. With cashback opportunities, rewards are earned on every grocery run, meal out, or fill-up. Plus, additional rewards are available through existing credit card rewards programs. This benefits the entire business/customer network by facilitating customer loyalty, corporate social responsibility, predictable cash flow, and reliable ROI. Plus, satisfied customers are repeat customers.
Get a Higher Paying Job
It is easier said than done, but it’s certainly possible. At the very least, employed persons can request a raise or take on second jobs to boost income and make everyday purchases more affordable. Unfortunately, many of us are already working at full capacity with other commitments in place. Suppose the challenges become too great, and they routinely do in inflationary cycles. In that case, there is always the possibility of working overtime, finding a part-time gig, or diversifying to bring in additional income flows. It requires creative thinking and tenacity, but it’s certainly doable.
Purchasing Substitute Products
Consumers tend to be creatures of habit unless the situation becomes untenable and changes need to be made. During inflationary cycles, many consumers switch to more cost-effective products. There are failsafe ways to do this without sacrificing quality. For example, generic/store brands are often of comparable quality to name-brand items. And they tend to cost a lot less. That’s because patents allow many branded companies to sell their products at a premium. There are many such examples, particularly with medication. A quick Google search instantly verifies that a generic is of comparable quality to the branded product, sans the fancy packaging or unique flavor, etc.
Maximize Cashback Credit Cards
A great way to fight back against inflation without flipping your shopping habits upside down is by making cashback credit cards work for you. Plenty of credit cards dish out cashback for everyday purchases like dining out, groceries and filling up at the pump. The trick? Line up your spending with cards that give the biggest bang for your buck in those categories. Some even come with rotating bonuses or special promos that can stack up the savings. Just a heads-up, though — clear that balance every month, or the interest charges will wipe out all those savings in a heartbeat.
