"Gas prices way too high!!"
- Alex Stein
So we want to provide you with a few strategies to survive inflation
1. Reassess your spending habits
Cash flow is important! Inflation can make it difficult to stay above water or
within your budget. Reassess your cash flow, where is it going, do you even
know where your cash flow is going? Take the time to look at where your
money is going AFTER your essential expenses are paid off. Is there
anything you can cut back on? Is there anything you can put your money
towards that will increase income?
2. Be strategic with savings
40% of the public has $1,000 or less in savings. Rising prices aren't the only
negative effect. You may be feeling like there is no way you are able to
save. Saving doesn't have to be difficult. Now that you reassessed your
spending habits and have calculated your cash flow. Make sure that saving is
apart of your budget and there is no miscellaneous spending put it straight
into savings.
Be sure to book a consultation with sovereign empire to get your budget in
order too.
Remember, although saving is necessary, your money isn't helping you any if
it's just sitting there because it is not beating inflation at the point. We need
to make sure our money is working. Some examples of financial tools that
you can utilize to make your money work for you is cash value life insurance,
high yield savings account, and high interest saving accounts.
3. Build an emergency reserve
Your emergency fund will be your designated savings account where you
store cash just in case an emergency hits. Emergency reserves won't protect
you from inflation but will help you with any surprise additional costs.
4. Maintain a diversified portfolio of investments
Make sure you aren't stuck on one way to invest. A diversified portfolio is
imperative to beat inflation. Inflation causes the value of money to decrease
so your positioning your money to increase.
5. Live within your means
Be cognizant of lifestyle inflation! you may have been living above your
means and now with inflation you may be struggling to maintain that image.
right now it is most important to live within your means because you are
causing yourself unnecessary stress when you could just downsize for a
better quality of life. Reconsider those large expenses.