You hear about inflation on the news and feel it in your wallet. Every item on the store shelf seems to have a higher price tag than it did a few years ago, and it costs significantly more to borrow money.
The current economic reality for consumers has many causes. For instance, demand for goods is rising while manufacturers and retailers are dealing with supply shortages. Plus, as the cost of doing business increases, companies pass along those elevated expenses to their customers through price hikes.
Currently, inflation, as measured by the Consumer Price Index, is at 3.4%. The government’s goal is to keep inflation at 2% or less.
Until that happens, you’ll likely continue to feel a financial pinch. Fortunately, you can adjust your spending in several ways to ease the pain.
We spoke with two shopping experts to see how they’re personally combatting inflation — without sacrificing their quality of life (too much). Keep reading to learn about what they’re no longer buying due to inflation.
Our experts have scaled back their spending in key areas to make their money stretch further. Here are the top four things they’ve stopped buying due to inflation:
Laura Pucker, founder of the beauty brand Pucker Up Beauty and connoisseur of sustainable products, has cut way back on dining out.
“Before, I enjoyed going to restaurants with my friends a lot, but now it’s something for special times only. The cost of food and service is just too high to do it as often as before,” Pucker said.
Pucker also critically reviewed her list of subscriptions and canceled those she really didn’t need.
“At first, it felt disappointing, but then I understood that I didn’t need all of them to have fun. Those every-month payments for streaming and magazines can become a lot of money together,” Pucker said.
Trae Bodge, smart shopping expert at TrueTrae, said, “I’ve cut back on purchasing brand-name foods and over-the-counter medications. I’m buying generic [goods] whenever they are available unless there is a sale on the brand-name version.”
Pucker does the same thing and doesn’t notice a difference in quality at the grocery store.
“[The generic goods] usually taste almost the same, and the savings add up a lot.”
Pucker has stopped buying new outfits.
“For clothes, I go to thrift stores and use online resale websites. You find amazing things there, and it is much better for the environment also. I’ve actually started to enjoy the treasure hunt for sweet deals,” Pucker said.
Bodge has been on the used clothing bandwagon for a long time.
“I’ve always bought secondhand clothing and jewelry, but I am doing so almost exclusively now. It’s fairly easy to find items in thrift stores that are in excellent condition and a fraction of the price as new. Also, the older the item, the more unique it is, and I like having things that no one else has,” Bodge said.
No one can know how long high inflation will be part of our financial reality (although economists have their predictions based on the results of the upcoming presidential election). However, it’s important to have a game plan for the extra money you’ll have in your budget when inflation eventually drops.
Pucker said, “When inflation slows down or becomes stable, people might feel more relaxed about their finances. This can make them want to spend money like they used to before prices went up a lot. They could start buying things that were too expensive during high inflation times, and they might also save less because they do not worry as much about the future cost of goods.
“But some habits formed during the high inflation period might stay. For example, people may keep looking for discounts and value deals even when prices are more steady because those habits became part of how they manage money better.”
When asked about her post-inflation spending plans, Pucker said, “For me, it is a bit of both good and bad. If prices become stable again, I would be very happy to start doing some things we stopped, like having those frequent dinners out with the family. They are a very good way for us to spend time together without worrying about cooking and cleaning problems.
“[However], some of these new habits [will] stay with us for sure. Purchasing store brands and reducing subscription services have been very good for my finances without making me feel deprived. I discovered that being clever with money does not have to mean sacrificing enjoyment in life.
“[Plus], now, saving more and making smart investments are very important priorities for us. Personally, I am concentrating on increasing my savings to be more ready for whatever happens next. Also, I have learned some new skills that help me spend less money.”
Bodge is all too happy to stay the spending course once high inflation is behind us. When asked if she would resume buying the things she stopped purchasing, she said, “Probably not. I’ve developed these healthy money habits and feel no need to go back to the way things were.”
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