Updated: Jan 30
The war in Ukraine and the slowdown in China due to Covid 19 are two reasons for disrupting the global supply of goods. And has put inflationary pressure on prices worldwide. Here are five ways to squeeze as much as you can from every dollar you earn:
1. Negotiate lower interest rates on your existing debt.
It’s a great time to set up a meeting with your banker. Discuss ways to lower your interest rates on your loans and lines of credit. This should not be a problem if you have made all your payments on time.
Rate shop for the lowest interest rates on credit cards. Call the credit card companies you’re dealing with to see if they can switch you to a different card with lower interest rates or move to another carrier.
2. Plug the leakages.
Look at your bank and credit card statements for the last three months.
What can you reduce?
Negotiate lower bank fees. Or move to a bank with no fees.
Switch to a lower phone plan.
Consider having only one car instead of two.
Walk to work or your grocery store, if possible.
Try using public transportation. It will save you money on gas, parking, car maintenance, and insurance. This is a considerable amount, especially with escalating gas prices.
Consider buying second-hand clothes, equipment, and vehicles.
Consider renting a room or extra space for students or artists in your home.
Grow your food.
3. Reduce eating out.
With inflation rates rising, restaurants have to charge more. Reduce the number of times you and your family go out to eat. Keep it just for special occasions. Prepare home-cooked meals for lunches. It’s healthier and significantly cheaper.
4. Pay off high-interest debt.
To combat rising inflation, central banks are increasing interest rates. Your variable-rate debts, such as lines of credit and variable-rate mortgages, will be affected. Pay off high-interest debts if you can’t negotiate a lower rate.
5. Comparison shop.
With costs rising, many stores pass this on to their customers by jacking up prices. Don’t accept the status quo. Comparison shop and get the best price for your necessities.
Don’t sweat the small stuff.
As a result of rising interest rates, the economy may enter a recession, but if it does, you’ll be ready for it by taking steps to make your dollar go further. Meanwhile, don't abandon your savings plan. You'll be prepared for a rainy day if it does pour.
This article was written by Jennifer Thompson at email@example.com