Inflation threatens your wallet, here's what to do about it
WISCONSIN (CBS 58) -- From the gas pump to the grocery store, prices are up.
Experts say inflation likely isn’t going away any time soon, so 2022 could be a tough one on your wallet.
There are plenty of opinions on what the country should do about inflation, but what should you do about it?
Yoni Mazor, chief growth officer for Getida, says there is no magic cure, but plenty of options.
“It’s not one tool that’s going to fix the whole situation, you might have to apply a bunch of tools to get a better reality for yourself,” he said.
Mazor, who helps e-commerce businesses maximize profits, says the small businesses he works with are very similar to your family— both should always be searching for ways to cut costs.
“Have the same standard of living, you are not compromising anything, just being smarter with your money,” Mazor said.
Mazor says if money is tight, spend your time instead searching for deals that make your money stretch further.
“Look to traditional coupons, rebates, there’s cash back applications if you look online,” he said.
Wages have also gone up recently, just not as fast as the cost of living. Still, inflation does present an opportunity to look for a better paying job, or ask for a raise.
“If you can really calculate and realize your value within an organization, it will give an open, honest discussion with your superiors on rewarding you accordingly,” Mazor said.
Douglas James agrees that making more money during inflation is key. He’s trained and coached more than 15-hundred entrepreneurs on how to maximize their earning potential. James says if money gets tight, consider a side hustle, but pick one that doesn’t seem like work.
“Whatever type of passion or little thing you think is like really silly, but you love doing it, I can almost guarantee you if you do some Google searches, you’ll find some type of app or website where you can actually earn some cash for that side talent,” James said.
Now is also the time to assess your finances and get them in order. Jim Temmer, president of the Better Business Bureau of Wisconsin, says credit cards are a good place to start.
“Are some balances on high interest cards? Can you shift them to lower ones? What can you do to stop paying those high fees?”
And if you have an emergency fund or a nest egg saved, consider putting that money to work, instead of leaving it in a savings account.
Savings accounts do not pay an interest rate that keeps up with inflation.
“If you sit on cash in a time of inflation, you are being hammered,” Mazor said.
Consult a trusted financial professional to find out what investments might work best for your situation.