Nobody is enthusiastic about inflation, but people typically feel like there is nothing they can do about it except grit their teeth and deal with it. Unfortunately, for some purchases, that may very well be true. However, some expenditures are worse than others right now.
According to some of the financial experts Fortune talked with, some of the worst financial moves right now can actually be avoided. Taking this advice, hopefully, you can navigate around the biggest financial pitfalls until inflation rates balance out.
Now is Not the Time to Get a New Car
Big purchases, in general, would be best to avoid at the moment if possible, but automobiles, in particular, have seen a significant price increase lately. Both new and used cars have risen in price by double-digit percentages in 2021. If you can make your current car last a while longer, it would be wise to do so.
Prioritize Investments Over Savings
Thanks to inflation, your cash savings will lose value even if you are not doing anything with them. That is why the experts Fortune spoke with recommend investing your assets into a diversified portfolio. Keeping your money working for you is how to make sure it retains its worth. Keeping a modest amount of cash on hand is fine, but the rest should be building towards something.
Change What You Eat
If you have ever thought of going vegetarian, inflation now gives you some financial incentive to do so. Meat prices have gone up significantly almost across the board. Beef, in particular, is now over 20% more expensive in the last year.
Review Month-to-month Expenses
Fred Hubler, Chief Wealth Strategist for Creative Capital Wealth Management Group homeowners compare their mortgage to current rates. Current rates, he suggests, might be lower and it could be a good thing to lock in low rates now.
Hublers also recommends reviewing car insurance premiums. Driving patterns are always in a state of flux. For instance, if you are working from home and not driving to an office every day, you may not need the same auto insurance for this year. Call your agent.
In that same vein, taking a look at your portfolio is never a bad idea. If your investments have done well and you are thinking of how to “lock in the gains” Hubler recommends you get a second opinion from an advisor who will give you impartial but practical advice. His firm offers a second opinion service (SOS) but you can get this service from most advisors.
Examine Your Spending Habits
Simple as it sounds, many people overlook bad financial habits they have fallen into. Are you subscribed to a streaming service you never really use? How about a gym membership you prefer not to utilize during the pandemic? Take the time to really look at what you are paying for that is not worth it.
Everyone is hoping the current inflation rates taper off, but if that takes a while, you need a strategy to preserve your assets. Now is the time to make a plan.
For further advice how you can avoid costly mistakes during inflation, read the Fortune article here.
Want to know if you’re on the right path financially? Fred Hubler’s Second Opinion Service (SOS) is a no-obligation review with Creative Capital Wealth Management Group‘s Chief Wealth Strategist.
It’s simply not possible to get a reliable second opinion from the same person who gave you the first one. Click here to schedule an SOS meeting with Fred and his team.