By GreenPath Financial Wellness 

Inflation continues to put pressure on household budgets. From groceries to gas, record-breaking inflation means the purchasing power of your money is decreasing each month.

Our partners at GreenPath Financial Wellness offer you the following steps to keep "budget aware" and help navigate this period of high inflation, however long it lasts.

1. Take inventory of your full financial picture. Has your household income changed? Have you adjusted your budget for rising groceries, transportation or other expenses? Check your existing budget to see where you stand and where your money is going. If you don’t have a budget, it can help to create a simple spending plan or roadmap of monthly expenses.

2. Continue to build an emergency fund to tap into when unexpected circumstances arise such as a medical expense or costly home repair. An emergency fund helps reduce the chance of taking on debt to cover an unplanned expense. It might be tempting to pause monthly savings as rising prices take a bigger bite out of your monthly budget, but resist the urge. Put savings on autopilot with each paycheck. Even a small amount can add up over time.

3. Prioritize monthly spending in a time of rising prices. Rethink certain monthly expenses such as subscription or streaming services. According to researchers, the average household has over four streaming services and spends an average of $55 on them per month.1 This may not seem like much, yet $55 a month adds up to more than $600 per year. If you’re trying to cut expenses in the face of higher prices, ditching underused subscriptions can be a good place to start. As essentials get more expensive, figure out your new baseline. Limit credit card use and curb discretionary spending (dining out, entertainment).

4. Monitor debt, especially as interest rates rise. Paying off high-interest credit card debt can save you money in interest, improve your credit score and free up room in your budget. Choose a debt payoff strategy that works for your situation.

5. Shop smart. Research the best sales, coupons and specials, especially on products that are low in inventory. Check dollar stores for deals on household items and stock up on those items where possible. Bulk retailers or wholesale clubs might be a good way to stock up on items in large quantities for a lower per-use cost. Strategically plan your higher-cost purchases. Swap out brand-name items for generic as much as possible.

6. Keep tabs on your credit history. In times of rising prices, it pays to keep tabs on credit history, which is used to calculate your credit scores. The three-digit number of your credit score helps determine whether lenders approve you for new credit and what interest rates they offer. You can visit AnnualCreditReport.com to check your reports from Experian, Equifax and TransUnion – the three industry-standard credit bureaus.

7. Get free financial guidance from trusted experts at APGFCU® and GreenPath. APGFCU offers no-cost webinars, classes and one-on-one sessions to address your unique financial concerns and goals. Both APGFCU and GreenPath offer access to financial assessments with certified counselors who lend an empathetic ear. Counselors look at your entire financial picture to help you ease financial stress and uncertainty, through access to clear information and a personalized action plan.

Connect with an APGFCU counselor today to get a handle on your specific financial situation.

This article is shared by our partners at GreenPath Financial Wellness, a trusted national non-profit. 

1https://www.jdpower.com/business/resources/despite-return-normal-people-spending-more-time-and-money-streaming-services-now