Inflation has been blamed on several aspects of politics. The federal government has claimed that inflation has slowed by citing gas prices that have decreased a bit. Regardless of political leaning, you will need to make wiser financial decisions during times of high inflation. Wages are not increasing at the prices rates, which is a recipe for disaster for the middle class. So many individuals are being squeezed by rental prices that never seem to be capped to ensure affordable housing. Below are five tips to help you survive inflation.
Consider A Reverse Mortgage
A reverse mortgage can be an incredible option for those who own or have a massive amount of home equity. You must be 62 years of age or older to qualify for a reverse mortgage at all. You can receive monthly payments while living in the home, and a lump sum payment is also an option depending on your needs.
Home comes with several memories if residing there for an extended period. Some families might not want to downsize but would instead leverage their investment in their homes. A monthly cash injection can allow retired individuals to live their life after work to the best of their ability.
Downsizing is an option that some that retire will choose. Moving to an area with a lower cost of living after retirement is quite popular. The drawback is that cities that retirees target have been hit the hardest by inflation. Miami and Phoenix are two great examples, as Arizona and Florida are two states popular for retirees.
Earn Supplemental Income Online
Heading to another job is not convenient due to gas prices and scheduling conflicts. Earning online can be gig-based which allows you to create your own schedule. Setting money aside weekly to help survive inflation is very wise. The last thing that you want is to go into debt with how high interest rates have climbed in the last year.
Freelancing can be the perfect opportunity to earn consistently from home. Leveraging skills, you already possess can be important in maximizing your income. Certain skills will also be honed while you are being paid to improve the quality of these skills. Even something as simple as data entry can be a gig that earns you money daily. You should be aware if you are putting in too much time as burnout is real. You don’t want to negatively impact your performance at your full-time job for your freelance gig.
Renting Out A Room/In-Law Suite
Renting out a room can be quite convenient when you rent to a family member that will respect the space. Additional monthly income can be so important, and you likely will allow your family member to save money. The tough truth is that rental prices are increasing at massive rates without control in sight. Keep in mind that even family members will need a lease as refusal to leave after being asked can lead to a formal eviction being done.
Take An Honest Look at Your Current Spending Habits
Spending habits need to be disciplined during times of inflation. Groceries are a great example as getting store brand options can be so important. Listing out all your expenses monthly in a spreadsheet can be the first step. Identifying which expenditures can decrease can make such a huge difference. Even monthly bills like that of cable can be canceled in favor of one or multiple streaming services. Finding what areas, you can save can result in saving an extra few thousand dollars annually.
Move To an Area with A Lower Cost of Living
Moving to an area with a lower cost of living might be your best option during inflation. Remote jobs have allowed many people to live where they wish rather than where they work. Digital nomads can live anywhere in the world if they have reliable internet. Do not underestimate how much further your money can go when you move abroad. Living like royalty is possible in places in Asia and even places in Europe. Portugal and Spain are very popular among ex-pats as well as remote workers.
Dealing with inflation should be done proactively before you find yourself in a financial hole. Do not underestimate how much prices can increase and how much it costs to live the same lifestyle year after year.
