Financial Fundamentals Blog

5 Tips To Battle Inflation

young man reviewing his receipts and budget on his laptop


From the eggs in the grocery store to the gas at the pump, inflation makes everything a bit more expensive. And for many people, the hike in prices can make it difficult to pay for basic expenses.


Adjusting your budget and investment opportunities can help minimize the impact of inflation and help you make it through higher costs. Let’s take a look at how to save money during inflation and go over some financial products that can help you through challenging times.


How To Save Money During Inflation

Understanding how to save money during inflation is an important skill. But it’s about more than just cutting costs where you can. It can also be beneficial to pay down debts and invest in helpful financial products. Let’s take a closer look.


Come up With a Food Plan

All food categories are impacted by inflation, but the categories affected the most include beef, poultry, fresh vegetables and fruits, snacks and non-frozen/non-carbonated juices and drinks — all of which can make up the bulk of what a family purchases at the grocery store.


Going shopping with a strategy in mind can help you save money on groceries. First, create a meal plan to help you avoid takeout or impulse grocery purchases. To further save money, use ingredients you already have on hand and stick to your grocery list as closely as possible.


Before your grocery shopping trip, comparison shop to find the best value. For example, you may be able to purchase canned goods, pasta and paper products in bulk from stores such as Sam’s Club and Costco.


When you’re in the grocery store, opt for cost-effective options such as dried or canned beans, pasta, rice and frozen fruits or vegetables. Switch to store-brand products instead of name-brand to save additional money.


Save on Transportation

There are a few strategies to consider here depending on your circumstances. These include:

  • Limiting your driving by carpooling, running errands in batches or working from home if your workplace allows it.
  • If your area has good public transportation, you could use this option to get to and from work or grocery shopping.
  • Comparison shop for your auto insurance to see if you could save by switching to a different company or if you could qualify for a lower rate based on your credit score or driving history. It may also be worth looking into discounted rates for setting up autopay features or paying your entire premium at the start of your new plan year.
  • Take advantage of fuel savings programs at gas stations. Many gas stations offer discounts for signing up for text messages. A gas rewards program could also help by earning you points that can be used to reduce the cost of gasoline later.

Adjust Your Budget

It’s a good practice to periodically review your budget, especially because your spending habits and goals will change over time. And when inflation rises and makes you pinch pennies a little more, taking another look at your budget is critical.


Money management apps and mobile banking apps are helpful when you’re re-evaluating your budget. You’ll want to compare how your spending is measuring up against your goals and determine if you’re sticking to your budget within specific categories. If you’re consistently going over budget in these categories, you may want to allocate more funds to them. For example, if you’re consistently spending more than you’ve allocated for food, you may want to consider increasing your budget for it.


When you’re adjusting your budget, it’s important to look for areas to cut back on, such as unused subscriptions or gym memberships, discretionary spending in retail stores or getting takeout for lunch regularly.


Avoid Using Credit Cards

When prices increase, it can be tempting to rely on a credit card for basic expenses. But this can actually stretch your budget by creating additional financial pressure. Taking on debt (which comes with interest) means that you’ll now have to work on paying it off in addition to your other responsibilities.


Take Advantage of Financial Products

Most savings accounts can’t outpace inflation, but putting your money into an account where it will earn higher interest can help minimize the impact of inflation. For example, a high-yield savings account earns more interest than a typical savings account.


Money market accounts are another high-yield option that offers a higher yield for larger balances. These accounts offer more accessibility than a Certificate and higher rates than traditional savings accounts.


Right now, you can tap into your house's equity by taking advantage of one of 7 17 Credit Union’s loan options, including a home equity line of credit (HELOC) or home equity loan.


Explore How To Better Live Within Your Means

Living within your means is a key part of navigating inflation, but what does this actually mean — and how can you do it? Develop a deeper understanding of budgeting and tracking your spending with our guide, “Expense Tracking: Living Within Your Means”.