Many of us are living through an inflation crisis. We’re facing the soaring prices of rent, fuel, energy, food, and so much more while our wages remain stagnant and aren’t covering everything they used to. This can be stressful and, at times, can feel overwhelming. But you must do what you can to get by while times are currently quite tough. The good news is that for many of us, there are steps that we can take to stay afloat without sinking into debt. Here’s some information that could help you with this.
The first step you may be able to take is requesting overtime or extra hours from your workplace. Of course, this isn’t an option for everybody. For example, if you have childcare responsibilities or other commitments, you may not have the time on your hands to accept overtime. Alternatively, your workplace might not have the additional demand to provide overtime. But if it is something you can manage and are available, it may be worth picking up extra shifts, hours, or projects to help boost your pay packet at the end of each month to help with the inflation impacting your cost of living.
Start a Side Hustle
Another option to combat inflation is a side hustle. An increasing number of people are considering how to make more money as some additional work or side hustle. This could be a part-time role outside of your primary job, or it could be starting your own business. It could be freelancing or anything that affords you a little extra cash. Just make sure that you carry this out responsibly.
If you are earning ongoing additional income through self-employed work, you will need to consider this when filing your taxes at the end of the fiscal year. Make sure you put sufficient money aside to cover tax payments at the end of the year.
Reconsider Your Spending
Make sure to reconsider your budget and general spending, cutting costs wherever possible. Compare service providers for phone contracts, insurance policies, internet costs, and more. You may be able to find better deals elsewhere. You may also want to consider your brand or unbranded foods rather than your usual branded food shop.
Manage Debt Responsibly
To live with inflation, some of us will inevitably fall into debt sometime in the coming months. This is difficult to manage, but you must ensure you handle any deficit at the lowest cost and most convenient way possible. Remember, the Federal Reserve is raising interest rates to combat inflation, meaning banks will increase rates on credit cards and other debt vehicles, so be cautious.
You should ensure that any lenders you use offer the lowest interest rate on the market. In addition, consider consolidation loans and interest-free credit card balance transfers to reduce your spending on interest and maximize the amount you’re paying off the debt.
Sure, this situation isn’t ideal, and hopefully, wages rise, or the cost of living reduces to even things back out. But hopefully, some of the information above will help you to keep things ticking over in the meantime.