Managing Your Finances and Debt During Fluctuating Inflation
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Managing Your Finances and Debt During Fluctuating Inflation

We’ve experienced a lot of financial uncertainty in the last few years with inflation and high interest rates. While we aren’t at the highs of June 2022—9.1% compared to 3.3% as of June 2024, financial experts have predicted that inflation could stay high until 2026


During unpredictable times, it’s important to manage your finances and debt. Here are a few ways to keep a budget during fluctuating inflation:

Subtract Your Primary Finances

When creating a budget, the first thing you can do is add up the bills you have no control over, including your mortgage, rent, and auto loan. Subtract them from your monthly income so you know what you have left over to designate for household expenses, debts, savings, and entertainment.  


Eliminate Costs

Now that you know how much you have left over, add up all your other expenses and evaluate where you can make cuts. This includes groceries, utilities, recreation, and transportation. Some ways to make cuts include using a grocery app (Flipp or Grocery Buddy) to find savings, reducing warm water or using LED lights for utilities, carpooling, curbing shopping habits, and eating in (instead of out).


Get Rid of Your Debt

Not sure how to begin paying off your debt? Try the debt snowball or debt avalanche methods:


  • Debt snowball: First, pay off your lowest credit card, then funnel the money you were paying into that one into your next lowest debt—and repeat.


  • Debt avalanche: First, pay off your debt with the highest interest rate, then funnel your money into the next debt with the highest interest rate—and repeat.


Save Some Money

If you’re like 59% of the U.S. that says they’re uncomfortable with their level of savings, now is the time to change. You can try the 80/20 rule, which says 80% of your monthly income goes to household expenses and 20% goes to savings. Or, you can try the pay yourself first method, which just means you set the same amount aside every paycheck.


Get Budgeting Help

According to a survey, 84% of people in the U.S. who have a budget say they overspend. If that’s you, it might be time to get help with your budget. Through credit counseling, you’ll get help creating a budget that works for you. If paying off your debt is a struggle, your counselor can enroll you in a debt management program and work with your credit card companies to consolidate your debt into one reduced monthly payment, lower your interest rate, and help you pay off your debt in three to five years.


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