Have you noticed a difference when shopping at the grocery store or in general? If not, you are spending more money than usual due to inflation. A small amount of inflation is good because it can cause us to save and possibly invest; however, inflation can also cause frustration if our wages do not grow.
To beat inflation, you must do something, and the best thing you can do right now is to discover your worth. If you are currently employed, you can start uncovering your worth by identifying what skills you have. Once you realize your worth, you can apply for a new position within your company that offers more money. Another thing I would suggest is to upgrade your skills by gaining a certification or a degree to increase your chances of making more money. As prices rise, let’s talk about some ways to beat inflation.
Calculate Your Personal Inflation Rate
To calculate your inflation rate, you will need to look at your monthly spending from a year ago and subtract this from your current monthly cost. Then take this number and divide it by last year’s monthly cost. For example, current monthly $4,200 – (minus) last year’s monthly $4,000 = $200. Then, $200 ÷ last year’s monthly $4,000 = .05 or 5% personal inflation rate. By calculating your personal inflation rate, you will know how to adjust your budget.
Spending less is easier said than done as inflation rises. Adjusting your budget will help you stay on track. Cutting back on food will help you save. For instance, consider meal planning instead of eating out. You can make a few “stretch meals” that will last two days and reduce your food cost. Another way to spend less and save more money is to consider sharing housing expenses with someone you know very well. It’s a risk and a bold move, but splitting your rent or mortgage in half can improve your financial situation. Just think how much money you can save if you have a roommate. Beating inflation would be an easy task to do because now you can use that money to pay your bills on time, pay down debt a lot quicker, or save to invest in other things.
Negotiate Your Salary
If your wages are not keeping up with the inflation rate, it is time to renegotiate your salary. Before you go into negotiations, you must research and understand what companies are paying for your level of skills and employee benefits. Speak with your employer to see what career avenues are possible to determine if you need to upgrade your skills by going back to school or gaining a certification. If your company is unwilling to negotiate, it may be time to search for a company that will. To stay current with inflation, you can visit the U.S. Department of Labor website.
William Eason is a Regional Facilitator for Workforce Solutions Houston-Galveston Region who directs community-based job search seminars and workshops to help citizens find a job, keep a job, or get a better job. He facilitates discussion among members of a group in a professional and interesting manner to achieve the objectives of the different seminars and presentations. He has helped many people become successful at creating resumés and acing interviews. In 2020 he received the “Best Customer Service Award” for helping many young adults gain internships with the city of Houston.