How to battle inflation rates and spending changes
Free up some cash and start a savings account for unexpected emergencies.
11:22 12 May 2013
Inflation rates plague people and businesses on a daily basis. We may not always think about them, but they’re still present. If you haven’t noticed any difference in your own finances, regardless of the signs that the economy is recovering, don’t worry.
Economies take a while to recover, but in the meantime there are a few ways that you can try to get through higher inflation rates, such as setting up a savings account.
You may be wondering how you might be able to set up a savings account if you don’t even have two pence to rub together, it may be possible. It’s all about creating a cash surplus, and not everyone will be able to do that, but some of these tips might help you out.
- Monthly expenses—are real with you. You may have a budget all set up, but view your spending records for the past few months. The time you spend may be worth it. What you think you spend versus what you actually spend could be vastly different.
- Timing—bills aren’t always due at the most opportune time, but paying some bills late could result in hefty fees that take their toll the following month. That’s like pouring your money down the drain. If finances are extremely tight, try to pick and choose which bill to pay and try to avoid late payments for bills that charge high late fees.
- Entertainment—we all need a bit of entertainment, but you might have to cut back on those expenses in order to create some extra for a savings account. Also keep an eye out for internet and local deals, or special nights that might provide a discount.
- Dramatics—if you’re in a really tight spot, you may need to relocate to a less expensive area, or sell a vehicle and arrange to carpool with someone at work. It might not be fun, but you’ll feel better knowing you’ve started a savings account and have some protection in an emergency.