Ways to Hold on to Your Cash as Inflation Rises

Ellen Contreras

Man getting dollars from walletPhoto by Karolina Grabowska from Pexels.com

The inflation rate in the US has been very stable and extremely low for years. We have had a great ride, but rates are going up and we are feeling the pinch every time we get gas, visit the grocery store, purchase clothes and things for the home. Big ticket items such as cars and appliances, when we can get them, are leaving us with sticker shock too.

According to the US Bureau of Labor Statistics, the US Consumer Price Index rose 7% over the last 12 months. That is the highest increase in 30 years as of January 2022. While those in government and the Federal Reserve are trying to put measures in place to curb this rise, Americans need to be smart about money management and do what they can to make their money go farther.

Here are 5 ways to protect your wallet from inflation:

1. Shopping. Get back to buying store or generic brands. While many of these items are exactly the same as the pricier name brands, not all are worth it. However, try it. You may be surprised at the level of quality of generics. There are lots of penny-pinching newsletters and YouTube videos that talk about dupes for almost anything you can think of such as food, beauty, health, cleaning, and other products. One extremely popular newsletter is The Penny Hoarder

Dried beans and ricePhoto by cottonbro from Pexels

When it comes to shopping, buying cheaper cuts of meat is a big money saver. Slow cooking cheap cuts, or using a crockpot, makes them tender and delicious. Buying dried beans and rice is an excellent addition to your pantry and will save a ton of money. Try sites like www.wisebread.com and https://truemoneysaver.com for awesome, easy to make recipes that’ll stretch your dollar and fill up your family.

Budget. When was the last time you audited your bills and negotiated the rates you pay? Doing this annually is a great idea. Now that we are dealing with a rise in inflation, this is the perfect time if you have never tried it before. Do this with your phone, insurance, credit cards, etc. Simply call other companies for their best rates and deals, then call your current provider, ask for the retention department, and tell them you are terminating your account and moving over to another carrier because you will get a better deal. More often than not, they will either match the deal or give you a better one to keep your business.

Cash. Cash is not king nowadays. Having access to cash is always important in case of emergencies but having too much cash on hand isn’t good either. Inflation erodes the value of your cash. Now is the time to put it to good use. Take some of your cash and consider investing it in stocks, ETFs, gold, or silver. Remember to choose investments that you feel comfortable with. Some people are risk adverse and others are more daring. Know what your risk tolerance is and make decisions accordingly.

Passive income. Everyone is talking about having a side gig and generating extra income. It is a great idea but remember it does take work and time to set up. Sites like Mercari, Poshmark and Facebook Marketplace are excellent options where you can sell items that you no longer use. If you have a skill and the time, you can generate money by creating products and selling them on Etsy. Do you have design skills? Why not create organizational tools, greeting cards or spreadsheets and sell them as PDFs. Creating something once and having people be able to buy them over and over, that is the ideal version of passive income.

Maintain what you own. We are so used to buying something, keeping it for a short time and buying something new to replace it. While that is nice if you have the cash, we are talking about ways to protect your assets from inflation. If you are used to buying a new car every two or three years, why not hold on to what you own for a bit longer? The same thing applies to clothes, shoes, purses, appliances, etc. When you buy quality, treat things gently and maintain them, you end up saving a lot of money in the long run.

Everything has its cycles. We have had a nice long ride with low inflation. However, what goes up must come down. Let’s not panic. Let’s be proactive and we should weather this storm quite nicely.

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Ellen Contreras is also known as the Treasure Coast Connector because she shares information and writes articles that connects business owners to consumers in the community - Florida's Treasure Coast and beyond. Ellen is an iHeart Radio talk show host at Planet Vero. Her show, Treasure Coast Connector, airs on Saturdays at 3pm on WCZR 101.7FM (Stuart to Melbourne, FL). She also writes helpful articles and shares opinions on careers, business development, the Florida lifestyle and more. Follow Ellen on: Livestream - iHeart radio talk show: https://livestream.com/planetvero/events/ Spreaker: https://www.spreaker.com/show/treasure-coast-connector-show Facebook: https://www.facebook.com/TreasureCoastConnector Instagram: https://www.instagram.com/treasurecoastconnector/ LinkedIn: https://www.linkedin.com/in/ellencontreras/

Vero Beach, FL

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