How to deal with inflation as a family

deal with inflation as a family
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Inflation is the harsh reality of our economic life, it is the persistent rise in the prices of goods and services in an economy. Inflation erodes the purchasing power of money, which means that each unit of currency buys fewer goods and services over time. The result is that you need more money to maintain the same standard of living. Right now, like many of us, you are probably wondering how to deal with inflation as a family.

Inflation is a burden but with the right strategy, it can be managed. Here are some tips on how to deal with inflation as a family:

1. Review your budget regularly

To keep up with the rising costs of living, you need to review your budget regularly. This includes:

  • Assessing your family funds
  • Finding ways to reduce your expenses
  • Determining what items or services you can do without

The goal is to set up a budget that can be followed easily and help you save money in the long term. Cutting back on unnecessary expenses can free up extra cash that can be used to offset the effects of inflation.

2. Clear your debts

Inflation and high-interest rates are some of the deadliest combinations for debtors. This is because the value of money owed increases at a faster rate than the debtor can repay it. Debts like credit card bills, student loans, and mortgages can quickly become unmanageable.

To protect yourself and your family from the harmful effects of inflation, it is important to clear your debts as soon as possible. You can do this by:

  • Making extra payments on your debts
  • Consolidating your debts into a single loan with a lower interest rate
  • Refinancing your loans

If you have multiple debts, focus on repaying the one with the highest interest rate first as this will save you money in the long term.

3. Save money wherever you can

There are plenty of ways to save money and cut your expenses during times of inflation. Some potential avenues include:

Grocery shopping

Grocery costs are noticeable up, but there are some simple things you can do to beat the inflation in your weekly grocery shop including:

  • Buying more cost-effective items by switching to the economy or own-brand items
  • Questioning whether you really need things and buying more mindfully
  • Having a maximum basket value that you won’t go over
  • Meal planning to buy only that which you need
  • Cooking more vegetarian meals – meat and fish are expensive options. Instead, look for vegetarian substitutes or tofu-based products, and cook more with pulses instead

Transport

The best way to avoid money is honestly to stay home. The minute you leave the house you’ll be feeling the effects of transportation whether that be through increasing petrol prices, taxi fares etc. And of course, once you’re out and about there are just too many temptations out there! If you can walk or cycle – great.

Holidays

Holidays suddenly seem very expensive. Flights (if you dare brave the chaos in the airports), sky-high accommodation and hotel or cottage rental costs will probably make you think twice about your holiday this year.

Some things to think about here:

  • Do you have friends you can visit and stay with somewhere or have a staycation?
  • Could you stay in a cheap B&B rather than hiring a holiday cottage?
  • Can you switch to a destination that is still relatively cheap compared to others? There are still some good value holidays out there so it’s good to be open-minded.

Using discounts and finding deals

Whether you’re after homewares, gifts, toys, clothing, home and garden items, or health and beauty products there is always money to be saved and a great way of doing this is by using deal hunter sites like UK deals. They find bargains on everyday items, finding and publishing around 200 days every day so well worth a check for any UK deals before buying anything.

4. Invest in inflation-proof assets

Certain assets retain their value or increase in value during periods of inflation. These include:

Gold and silver

Precious metals like gold and silver are a haven for investors during periods of inflation. This is because they are not affected by the volatility of other asset classes like stocks and bonds. Gold and silver have always been used as a store of value and a hedge against inflation.

Real estate

Investing in real estate is another way to protect your family from inflation. This is because the value of property generally increases during periods of inflation. This is because there is a limited supply of land and property, while the demand for these assets continues to rise.

Inflation-linked bonds

Inflation-linked bonds are a type of bond that is linked to the rate of inflation. These bonds offer investors protection from inflation by providing them with a stream of income that increases in line with the rate of inflation.

5. Set goals with your family

Having a family is a blessing in itself. But when it comes to managing finances and saving money, it is important to set goals with your family. Sit down with your spouse and children and discuss your financial goals. This will not only help you stay on track, but it will also motivate your family to save money and live within their means. It’s also a great way to teach your children about the importance of money management.

6. Start a family business

One of the best ways to deal with inflation is to make more money and one way to do this is to start a family business. This can be a great way to generate additional income and build your family’s wealth over time. Not only will you be able to offset the effects of inflation, but you will also be able to provide your family with financial security in the future.

A family business can be anything from a small online business to a large manufacturing company. It all depends on your interests and skills. If you’re not sure where to start, there are plenty of resources available online that can help you get started with your family business.

deal with inflation as a family
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7. Stay informed

The best way to deal with inflation is to stay informed about the latest economic developments. This includes reading the news, listening to the radio, and watching television. By staying up-to-date with the latest news, you will be able to make informed decisions about your finances and protect your family from the effects of inflation. But remember, try to keep things in perspective and keep calm.

Conclusion

In conclusion, inflation can have a significant impact on your family’s finances. But by following these tips, you can protect your family from the effects of inflation and secure your financial future. Involving your family in your financial planning will also help instill good money management habits in your children that will serve them well into adulthood.

How have you been trying to beat inflation as a family? Let us know what strategies you’re using in a comment below.

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