With inflation at record levels, the pockets of millions of Americans in the country have slowly begun to empty, to the point that much of the income now goes to cover basic needs and less and less for savings.
During the month of September, year-on-year inflation surprised to stand at 8.2%, -0.1% higher than the projections of specialists-, after registering 8.3% in August, 8.5% in July, 9.1% in June and 8.6% in May.
The high levels of the consumer price index, which do not fall below the 8% range, plus the measures undertaken by the Federal Reserve in its attempt to curb inflation and bring it to its 2% target have had an impact on the mood of the consumer.
That “fear of fear itself” could be dangerous. The recent Nobel laureate in Economics, Douglas Diamond, says that it could be the trigger for a financial crisis in the United States.
Given the panorama of uncertainty, it is possible to make certain changes that can make a difference in your portfolio and economy, with significant savings.
Unnecessary subscriptions
Marcus by Goldman Sachs CFO Liz Ewing told Fox Business that consumers spend an average of $219 each month on subscriptions, including streaming services, health and wellness products.
Auditing automated payments on a regular basis could bring back useful money in these times. It is important identify which services provide you with value and which may be temporarily paused or cancelled.
Eating out
On the other hand, the specialist says that an average household spends just over $250 a month on meals and takeout expenses. Given the 8.5% increase in the last year for this category, it is better to prepare food at home.
Telephone and internet providers
A considerable part of the budget may well be used to pay for mobile phone and internet services. However, it is possible to negotiate prices with suppliers based on their competitors’ prices, says Ewing. She suggests finding out how much family and friends pay to get a range of prices to try.
Take advantage of credit card rewards
Taking a look at credit cards to see if you have rewards or cash back offers available can be beneficial from time to time. Rewards can save you money if you pay off your card balance each month. Interest on revolving balances will offset any rewards earned.
Save
Once you have started to generate more cash leftovers with any of the following measures above, it is recommended to start saving it. One way is to start with $50 and add $10 to it each month in the future.