No doubt about it, we have all been feeling the effects of inflation.
As a whole, the US experienced overall inflation of 7.5% in ONE YEAR. (US Bureau of Labor Statistics).
So what does that mean for all of us?
Shiz is getting more expensive.
But not all categories experienced the same amount of inflation. Here are some of the notable (and most common) ones:
- Food at home: 7.4% increase (with meat/poultry/eggs/fish experiencing 12.2% increase)
- Food away from home (dining out): 6.4% increase
- Energy service (electricity + natural gas): 13.6% increase
- Used cars + trucks (get this): 40.5% increase 🤯
- Gasoline: 40% increase
Pretty crazy, right? These increases are the percentage change from January 2021- January 2022. If you’ve been looking at your budget and frustrated that you can’t make your numbers work anymore, when they used to– inflation is likely why.
It’s INSANE that your used car might be worth more than you paid. Not a normal thing to see.
Here’s what to do on a day-to-day basis to get your cash flow back on track during a high inflation time.
Give yourself grace
It can be super frustrating to see yourself failing at your numbers when you used to be able to make it work before. This is normal. Don’t beat yourself up. There was legitimately nothing you can do about this.
Find your new norm
Just like when you first got your finances in order, you had to learn how much things cost for your household.
My first budget was so inaccurate. I thought I spent $100 on eating out, I actually spent $200.
After a couple months of tracking and paying attention, I learned what was a healthy/normal level of spending for me.
You will likely need to do this for your life. Revisit your budget, track your spending, and learn what your new normal numbers are. Be realistic with yourself and adjust your number accordingly.
These 2 things will help you start to financially prepare your day-to-day life for inflation.
What are you inflation budget tips? Comment below or come say hi to me on IG (@whitney_hansen_co) and let me know!