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Be aware of shrinkflation -

Shrinkflation is a tactic where companies will slowly shrink the contents of the packages and goods you buy, while charging you the same price. Therefore, pay attention to the unit price of what you are buying.

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Ask for a raise -

With the current high inflation rate, it's time to develop some bargaining skills. However, a typical salary increase is normally likely to be below the rate of inflation. So build up the courage to ask your boss for a higher raise.

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Buy the car you’re leasing -

Inflation data in 2022 has shown that new-vehicle prices rose 13.6% since March 2021, while prices for used cars were up 34.7%. If you have a vehicle lease expiring soon, then you have a way to avoid those higher prices. That’s because your vehicle’s lease-end price was set when your lease began, before the current inflation. So if you buy it, you'll get an almost-new car for an inflation-free price.

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Time your expected purchases -

People sometimes save up for unexpected expenses, such as house or car repairs or even medical bills. But it's also important to keep cash on hand for expected purchases that go on sale, even if that means buying ahead of time. For example, it's better to buy back-to-school supplies on sale, instead of waiting for the fall when goods have higher prices.

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Seek a higher return on happiness -

When prices start soaring, take your time to think about what you’re spending money on and why. Then stop spending money on the unnecessary things that don’t bring you joy. You will then no longer be impacted by inflation in this area.

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Control your lifestyle creep -

Inflation can be an opportunity to try and cut down on lifestyle creep, a phenomenon that occurs when consumption increases on non-essential items. Cutting down on this can be done by keeping your budget flat. For example, if your expenses were US$2,000 a month in 2021, try to get by with the same amount in 2022.

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Better insulate your home -

Given the current higher costs of fuel, it's a good idea to invest in better insulation for your home. This upgrade will help lower your energy costs.

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Account for shadow inflation -

Remember when restaurants gave you free bread and butter? With the cost of goods rising rapidly, along with the current labor shortage, many services are no longer included without an extra fee. This is something called shadow inflation, which is important to know about so you can adjust your expectations and budget accordingly.

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Update your CV -

With the current job market, there’s an opportunity for many employees to find new positions that will pay them more, which is a huge benefit in an inflationary environment.

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Dive into drugstore skin care -

If you shop at beauty stores, consider giving the beauty sections at other stores, like supermarkets or pharmacies, a shot. Although the packaging might not look as luxurious, they have great products that are cheaper and just as good as the expensive brands.

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Watch for falling prices -

This might sound a bit counterintuitive, but one way of dealing with inflation is accelerating certain purchases. This is because consumers will need to cut spending on discretionary items, so a lack of demand may cause the prices of various nonessential goods to decrease. This gives you a unique buying opportunity.

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Invest in alternative energy -

With the spike in energy and food prices being driven by Russia’s war in Ukraine, nations are increasingly seeking to limit their dependence on foreign fossil fuels. For this reason, it's a good idea to consider alternative-energy stocks as an inflation hedge.

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Shop frozen foods -

Don't be afraid of frozen food! For instance, frozen seafood is less expensive than fresh, and there’s no rush to cook it. Plus, frozen berries and spinach will last longer than fresh, while being just as nutritious.

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Buy inflation-indexed stocks -

People who like to invest should purchase stocks from established companies, such as supermarkets, whose revenues are indexed to the inflation rate.

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Discover local farmers -

By shopping direct-to-consumer, you'll get better food prices due to the lack of shipping costs and a middle man. Meet your local farmers, and you'll get the freshest food possible for a great price.

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Consider strategically downsizing -

If you own any assets that are worth more as a result of inflation, then now's a good time to sell them. Items like vehicles, furniture, equipment, and recreational goods are solid options, as they have all seen major price increases due to inflation.

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Use it or lose it -

Make a list of your subscriptions, such as streaming services and gym memberships. Chances are you probably have them on autopay. Go through the list, and if you haven't used it in a month, cancel it.

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Keep investing in the future -

It's normal to focus on immediate needs when money gets tight. But don't forget about your long-term goals, such as retirement. That’s because long-term investments help your money increase in value, and can even outweigh the effects of inflation.

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Cut salon cost -

Find out whether your salon offers discounted prices for hair cuts, color, and other services when training new stylists. It will be a lot cheaper.

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Don’t waste gas -

Make your tank last longer by planning your trips and errands efficiently. Try to go to the supermarket weekly, and if you need to make multiple errands, map out your stops in the most efficient way.

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Shop second hand -

Check second-hand shops, yard sales, and online marketplaces for deals on clothing, home decor, and so on. Look for items that are in new or good condition, and set a budget in advance.

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Grow your own herbs -

Why pay for dried herbs when you can have fresh ones all year long? Grow your own instead. For example, parsley, sage, chives, thyme, rosemary, and oregano are easy to grow year round by a sunlit window.

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Reduce energy use -

By making simple changes at home, you can cut down on the costs of your utility bills. For example, a microwave uses as much as 80% less energy than an oven. Also, washing dishes by hand costs about US$40 more each year than running a fully-loaded dishwasher.

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Schedule a no-spend day -

For a whole day, don't spend any money. Once you get used to not spending money for a day, try doing it twice a month or more. It makes you more conscious, and it gives you more control over where your money is going.

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Look for cheaper alternatives -

As prices rise, your previous purchases may no longer be possible within your existing budget. Try less expensive store-brand foods and cleaning products. You'll notice that there isn’t a huge difference in the quality or taste.

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Pay off your debt -

Eliminating your debt will leave you with more money to pay for the things you need and want today. Remember, paying more than the minimum of your balances will help you pay off your debt faster.

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Research past inflation trends -

Researching past high inflation trends can help you identify some current and future inflation patterns. These include the performance of real estate and the stability of the energy sector.

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Slow down -

Tire friction and air resistance mean that speeding increases fuel consumption. Gas mileage often declines dramatically at speeds of more than 50 mph (80 kmh). As a result, you'll pay more per gallon of gas.

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Make a list of what you already have in the kitchen before shopping -

Make sure you know what you already have before hitting the supermarket. Doing a quick pantry, fridge, and freezer inventory will help prevent you from buying what you already have, and inspire you to use it. 

Sources: (The Washington Post) (The Wall Street Journal) (EatingWell)

See also: Watch out for these silly things we spend too much money on

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