Getting a handle on high inflation

Managing your money when inflation is high is essential for keeping your spending power strong and your finances stable. Here are five tips to help you in these challenging times:

1. Reassess your budget: Inflation raises the cost of living on items such as your rent/mortgages, gas, groceries and other items. It’s important to keep track of your spending and find areas where you can cut back. Focus on essentials like housing, utilities, and groceries, while reducing non-essential spending. 
2. Increase your savings: Growing your savings helps protect you from financial stress. Think about putting money into high-interest savings accounts or investments that give better returns during high inflation. Building an emergency fund with at least three to six months of living expenses can help you manage unexpected costs.
3. Pay down high-interest debt: Inflation makes borrowing more expensive, so aim to pay off high-interest debt like credit card balances first. By prioritizing debt repayment, you'll lower interest costs and improve your financial health.
4. Diversify income sources: Relying on just one income can be risky during high inflation. Look for ways to earn more, like taking on freelance work, starting a side business, or finding other sources of income. Having multiple income streams can give you more financial security.
5. Stay informed: Keep up with economic trends and inflation forecasts to make smart choices. Understanding the bigger economic picture can help you in both the short and long-term.

>> Have questions about your personal finances? Our RICs can help. To book an appointment, call 306-787-3170 or email at: ric@plannera.ca.