Ways to Save Money During Difficult Times

With inflation running at a 40-year high, consumers have less purchasing power than they had before. Rising prices for necessities such as rent, food, and gasoline have already put a dent in many personal budgets.

Finding ways to stretch your income is critical during periods of high inflation to avoid getting into debt or having to dip into savings to make ends meet. Here are a few tips to help you minimize spending so that inflation doesn’t upend your financial goals:

Decide Where You Can Cut Back

The first step to control your spending is to create a budget to accurately track where your money is going each month. SyncUp, a free personal financial management tool built into online banking, can show you how much of your income goes to essential expenses, such as rent, child care, and car payments, and how much you are spending on discretionary items, such as dining out, travel, and entertainment.

Although the options to cut back on your fixed expenses may be limited in the short term, there are plenty of ways to adjust your discretionary spending. SyncUp can help you set spending goals, track your income and bills, and more - making it easy to create a budget and get a better grasp on your overall financial picture.

Next, you need to decide where to reduce your expenses. Here are some budgeting tips that can help you to cut your spending:

• Cancel subscriptions to streaming services and cable TV channels you no longer frequently watch.

• At the grocery store, skip higher priced brands in favor of private-label brands, which are often produced by the same manufacturer. Plan your meals for the week ahead and use the store app for free curbside pickup—one trip to the store saves on gas and avoids overspending on costlier convenience foods.

• Use a programmable thermostat to target the right amount of air conditioning and heat when you are in the house and save energy when you are away. Unplug appliances when they are not in use to save electricity costs. Replace your lightbulbs with energy efficient LEDs.

• Curb impulse buying by setting a waiting period, say 24 hours or more, between the time you decide to buy something and when you actually pay for it. Often the perspective of a little time can keep you from buying things you really don’t need.

• Talk to your insurance agent about lowering your car insurance premiums by raising your deductibles or taking advantage of discounts for low mileage, safe driving, and good credit scores. Or it may be time to switch to an auto insurance company like TruStage that may offer a less expensive policy.

Refinance High Interest Loans and Consolidate Debts

Another way to stretch your money during a period of high inflation is to reduce the monthly payments you’re paying on debt by refinancing or consolidation.

• Refinancing your vehicle for a longer term can bring down your monthly costs and make balancing your budget more manageable. If your immediate goal is to reduce your monthly expenses, an auto loan refinance could be a good choice. Consider refinancing now but increasing your monthly payment once your financial situation has improved.

• Consider consolidating your credit card debt with a balance transfer to your Fort Worth Proud VISA credit card. The lower interest rate can save you money while consolidating multiple payments into one easy payment.

• Refinancing your home loan now could leave more money in your pocket each month. Most of our mortgage loans do not require private mortgage insurance (PMI) which could save you hundreds of dollars. And by refinancing and locking in a better rate or a shorter term on your loan, you could save thousands of dollars in interest throughout the life of your mortgage.