Lifestyle Changes That Can Lessen The Blow of Inflation

Inflation is always a source of consternation and anxiety for consumers. Your money doesn’t go as far during a period of rapid inflation, and wages seldom rise in line with a higher cost of living.

Unfortunately, recently released data from the Bureau of Labour Statistics show that consumer prices rose by 4.9% from April 2022 to April 2023. That’s far higher than the 2% inflation goal set by the Federal Reserve. This is likely due to a combination of factors like the pandemic, global conflicts, and disruptions to global supply chains.

Inflation will likely fall as the world returns to normal in the wake of the pandemic. However, in the meantime, you can make your hard-earned dollars go a little further by making lifestyle changes that lessen the blow of inflation.

Guest post by Katie Brenneman.

 

Protecting Your Mental Health

News headlines today are dominated by talk of economic downturn and inflation. While it is important to stay up to date, the constant barrage of red flags and reports of slowing growth can have a toll on your mental health and well-being. It’s easy to feel stressed, even if your own financial situation is relatively stable.

Before making any meaningful lifestyle changes, improve your own mental health by practicing gratitude. You may have to tighten the belt by eating out less often, but you should still find moments to be grateful for the things you can afford to do. Consider starting a gratitude journal, and jot down your gratefulness for things like: 

 

  • Clean water;
  • The clothes you love;
  • The safety of your home;
  • The support of your friends and family.

 

Making a quick entry into your journal can stave off feelings of impending doom and help you ride the wave of inflation with gratitude and resilience.

If you feel that gratitude journals aren’t quite cutting it, consider speaking to a mental health professional who can help you. Your primary care provider can usually recommend a therapist or psychiatrist based on your symptoms. Alternatively, you can find a therapist through directories like Psychology Today or the Anxiety and Depression Association of America. Getting help can support your long-term growth and give you the mental resilience you need to see through a period of inflation.

 

Buying a Home

Most people think of inflationary periods as a time to shut down spending and turn away from big-ticket items like home purchases. However, if you have extensive savings and are eyeing retirement, now might be the right time to ‘right-size’ your home. The long-term benefits of ‘right-sizing’ include: 

 

  • Reduced Expenses: Smaller homes are cheaper to heat or cool and are usually taxed at a lower rate. This puts more money in your pocket at the end of the month and may alleviate the financial stress you’re feeling.
  • Increased Flexibility: Opting for a smaller home opens up the housing market and gives you a chance to live where you want. This is particularly important if you want to move to a state with a lower cost of living. 
  • Less Upkeep: Big homes are difficult to upkeep and can become expensive. Even simple tasks, like mowing the lawn, can be expensive — particularly if you have to call in professionals to upkeep your house. 

‘Right-sizing’ your home can be a savvy financial move, too. Inflation and house prices share a correlational relationship that may surprise you. During periods of rapid inflation, financial institutions like the Federal Reserve imposes a high-interest rate on borrowing. This means that mortgages become more expensive and, in return, demand for housing falls. If you already have significant savings, you may be able to save money by cashing in and ‘right-sizing’ your home while house prices are lower than usual.

It’s vital that you speak to a reputable financial advisor before making any major moves. Make an appointment with your bank’s mortgage advisor and follow up with trusted financial advisors. Expert help can save you heaps of cash to buffer the blow of inflation and help you dodge a bad investment. 

 

Renovations

In the U.S. inflation has largely been driven by the increased cost of durable goods like cars and home appliances. This means that big-ticket items are more expensive today and will take a larger chunk out of your monthly pay packet. The rising cost of durable goods can be frustrating if you’re planning renovations but want to side-step items affected by high inflation.

Fortunately, it’s still possible to renovate your home and garden on a budget. Rather than going all-in on expensive items like couches and TVs, consider budget-friendly landscaping ideas that add value to your home and improve your quality of life. You could, for example, pursue cheap landscaping ideas like: 

 

  • Walkways: Paths add depth to your yard and make the space feel intentionally designed. A few stepping stones are relatively cheap, too, and can be installed with a shovel and little elbow grease. 
  • Perennials: Perennials are the frugal gardener’s best friend. You don’t have to pay for new bulbs, as perennials like daffodils and foxglove come back every year. They may cost more than annuals at first, but will quickly recoup the cost. 

 

Lighting: Strategic lighting can help you get more from your garden space. This is particularly important if you are trying to dine out less often. Outdoor string lights can set the tone for the evening and encourage you to spend more time barbecuing and eating al-fresco this year.

Carrying out home DIY renovations like laying your own footpaths is a great way to add value to your home and improve your quality of life. If you’re new to DIYing, consider starting with easy projects like updating your kitchen cabinets or weatherproofing your doors. This will help you beat spiraling market prices and give you the confidence to take on inflation-busting side hustles.

 

Side Hustle

You can’t control inflationary pressures or prevent an economic downturn. However, you can try to earn a little extra income to lessen the blow of rising prices.

Consider starting a side hustle if the idea of monetizing your hobbies sounds appealing to you. A good side hustle can top up your monthly income and help you get more out of your passions. Making money from your passions can drive you to learn more and network in your dream industry, too.

If you’re unsure of how to start a side hustle, consider easy-entry positions like driving for Uber or head over to sites like Fiverr and UpWork to browse popular positions. Be aware that it may take some time to start bringing in extra cash, and you may still have to adapt your spending habits to suit your budget.

 

Purchasing Habits

Inflation reduces your overall purchasing power and increases the cost of living. However, some items are resilient against the pressure of inflation and do not rise in cost despite widespread economic pressures.

Consider altering your purchasing habits to buy more goods that are not impacted by inflation. For example, when writing your grocery list, consider stocking up on inflation-resistant items like: 

 

  • Boneless pork chops;
  • Romaine lettuce;
  • Bananas;
  • USDA-choice beef.

 

Grocery items like these have not been impacted by inflation. Goods like ground beef and romaine lettuce have even fallen in price from 2022 to 2023.

 

Inflation is a fact of life. However, rapid inflation can outstrip wages and reduce your spending power. Rather than fretting about the future, consider making a few lifestyle changes that lessen the blow of rising prices. Work with a financial advisor to make a few shrewd moves in the housing market and pick up DIY skills that save you money and increase the value of your home.

 

 

markmunroe

markmunroe

Founder, CEO at ADDICTED Media Inc
Mark Munroe is the Creator and EIC of ADDICTED. He's ADDICTED to great travel, amazing food, better grooming & probably a whole lot more!
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