Brad Lineberger once said that inflation is the silent budget killer, and those words ring so true today. From groceries to fuel, rent and electricity, the purchasing power of money has dropped significantly. But what does this mean for you and every other American citizen? The truth is rising inflation is running rampant and has become a global phenomenon.
Title Loans
However, you do not have to just sit and watch as your bills keep accumulating. There are several things you can do and many things you can avoid in order to survive during this rising inflation period however long it lasts. You can instantly apply for a title loan online and still get to keep your car as you continue paying your title loan.
Title loans are very beneficial in times like this, because they provide an instant cash option to help you sort out dire monetary needs. You will not be required to provide a guarantor or have a good credit score. This is because your car acts as a good assurance for the loan.
Behind the Rising Inflation
Nobody wants to hear this, but inflation has reared its ugly head in 2022. According to Business Insider, the high prices of gas and food may go on for a long time. Compounding the damage COVID-19 left on the economy, and the Russian invasion of Ukraine, the global economy has faced serious blows. This begs the question: Is there a correlation between money politics and inflation? What happens to money during seasons of inflation?
According to the World Bank Economic Prospect Report, a political crisis can result in weaker economic growth, high inflation, and long-lasting damage ― especially to middle and low-income economies. Remember, with high inflation, your purchasing power is reduced. This means that for low-income earners and those without savings, inflation could result in households missing meals and foregoing other basic needs.
If the fallout between Russia and Ukraine persists, it will be very hard for governments to set monetary and fiscal policies. Surging prices of fuel and food have already forced central governments from all over the world to tighten monetary policies. Governments are also rethinking their spending plans as they look for ways to reduce their dependence on Russian fuel.
Tips to Cope
So, what can you do during these times when inflation continues to creep in by the day? The truth is, eventually things will settle down, but you may have to adjust to the current high prices.
Here are three tips you can use to cope with the rising inflation.
1. Create a Strategy to Reduce Your Expenses
Since money is buying less right now, it is only prudent to reduce your current expenses. Take time to look at your spending and your bills. See which ones you do not need and which ones you can reduce. Cut out recurring subscriptions, and see if you can reduce your car and home insurance policies.
If you are a homeowner, you can choose to focus on critical repairs only. As the cost of materials continues to escalate, you can decide to work on critical repairs that will significantly improve the quality of life. Postpone home improvement projects to a later date. You can also decide to buy used furniture instead of new. The Facebook marketplace has a wide variety of locally used goods, and they come at a reasonable discount.
2. Increase Your Income
As you continue tightening your belt and bracing for tough economic times, it is also very important to look for ways to increase your income. Political instability and rising inflation have almost returned the economy back to the pandemic level. Many businesses are still struggling to hire, and getting a pay rise may be difficult right now.
However, you can always make money by selling things you do not need in your house on Craigslist and the Facebook marketplace. You can also rent out your car, your pool, or your house as an Airbnb and make some extra cash. Side hassles with a flexible schedule also save the day during these tough economic times. Check online sites that offer jobs such as online writing, pet sitting, or tutoring, and find time outside your 9-5 job to do them. Remember, there is no quick fix to increase your income overnight. However, you can find ways to make something extra to cater to immediate expenses.
3. Continue Investing in Assets That Do Well During Inflation
In order to outpace inflation, you must continue investing the cash flow you have as long as you set aside an emergency fund. Investments in gold, real estate, and even stocks can protect your money from inflation. When you have things that other people will need in the future, your buying power will still remain intact despite what is going on in the world.
