The cost of everything is going up around you, so how do you manage your money during this time? If business has remained the same (or slowed down), you might wonder how you’ll make your dollar stretch with inflation rates increasing what feels like monthly. Fortunately, there are simple ways to handle your money during inflation.

Revisit your Budget

Start by revisiting your budget. Look at where you spend money and more importantly, where you can cut back. During inflationary periods, you may need to spend less than normal. This is a great time to look at your bank statements to see where you might spend too much and cut back. This is also a great time to negotiate certain bills or shop around for different services. For example, you don’t have to pay for cable. You can cut the cord and pay a fraction of the cost for streaming services. You can also shop around for cheaper internet services, cheaper insurance, or even shop at different grocery stores. As you work on your budget, make sure it includes line items for all necessary expenses plus room for savings, especially if you don’t have an emergency fund.

Change your Lifestyle

• Buying generic brand or store brand products versus name brand
• Finding ways to entertain yourself at home versus going out
• Making meals at home more often rather than acting out
• Bringing brown bag lunch to work instead of eating out

 Cut Out Unnecessary Expenses

 Some expenses are just downright unnecessary, and you could cut them out. While everyone will have different expenses they don’t need. Here are the most common areas.

• Excessive shopping (impulse buys)
• Coffee shops
• Nail, hair, or other grooming appointments
• Eating out
• Entertainment

Does this mean you can’t ever splurge or get coffee? No. But you should budget those things into your spending sparingly. For example, put more time in between your grooming appointments, take turns cooking at home versus eating out, and make coffee at home instead of going to Starbucks daily. They might not seem like big changes, but even if you’re saving $10 a day, that’s $300 a month and $3,600 a year!

Find Ways to Grow your Money

Don’t forget, you can still grow your money during inflationary periods. Invest in stocks, bonds, or even just put your money in a high-yield CD. Let your money grow so even if you aren’t making large contributions to your savings, you’re still saving.

How you handle your money determines how you handle inflation. You could let it hurt your finances or you can take charge and manage your money despite what’s going on in the economy. While it does require a few changes, they don’t have to be drastic, and you can make the most of your money during trying times. The more money you’re able to save, either in a savings account/investment account or just by not spending as much, the easier it will be to get through.