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How can we keep pace with the rising costs of goods and services? There are at least 8 ways to keep up with inflation. The cost of things you buy will continue to rise exponentially. People are feeling the pinch in their wallets and are more cautious of their decisions when making purchases, rightly so.
Side Note:
I am not an expert certified economist, but an average citizen who lives and works in the same world as you. Take what resonates and leave what does not. Thank you for reading on.
Why Are The Prices Of Goods So High?
The Rise Of Inflation
Inflation is rising because we are a culture that lives off debt. As the debt continues, the value of currency declines. The dollar is getting weaker because debt is simply not getting paid off, instead it keeps growing. As long as debt remains expect the price of everything to be on an incline.
The purchasing power of currency weakens making everything we buy more expensive. This also means the amount of energy we exert to earn money is devalued resulting in less purchasing power.
Buying groceries at $150.00 a week are long gone in many households for a family of four. I recently went out for dinner. We ordered an appetizer and two main meals. Vegetarian meals are now almost the same price as meals that serve meat.
Something as basic as a plate with a few vegetables and rice, for example, may only be $2.00-$3.00 less than a plate with meat. The total bill came to $90.00 for an appetizer, 2 mains, one pop and two tap waters. It was not a fancy restaurant but a franchise. The tip request on their machine starts at 18%. The food was mediocre and the appetizer disappointing.
With the rise in costs of foods, services and products, the quality is also going down. As long as the root of the problem of debt is not resolved, expect to pay more money for less quality and quantity.
In today’s day and age we must rely on our skills and talents in order to ride out high inflation.
Is There A Doctor In The House?
The Economy Needs A Financial Surgeon Right Away
When temporary band aids are the only solutions to an economy needing emergency surgery, more complications will show up. Long before we got in this position, the health of the financial markets was already sick. This economic problem has been an issue for more than a few decades.
As long as the economy is not taken to emergency the situation will not get easier.
This is why we all need to keep our finances in order because our lives are quickly changing. Since 2020 we have had several conflicts around the world. This will not stop if we keep owing other people money we do not have.
The suggestions below will help us keep up with steady inflation in the years to come. The reason why I say years to come is because the debt level continues to rise with no stop. Therefore higher inflation will continue to help mitigate it from falling off a cliff. Once it falls off then people will really lose their wits and we do not want to get there.
What Are 7 Ways To Keep Up With Inflation?
Best Ways To Protect And Manage Your Wealth
1. Food
Food is an asset and a fraction of an investment compared to investing in buying a house. As much as having shelter is important, we cannot live without food. Everyone needs it in order to survive. It is also something that we can trade and barter. Food is a commodity. It is much more expensive to buy certain items today than we did just a year ago. For those who are renting, build an organized clean space in your place for food.
Fill up your pantries. You do not have to store that much, but have enough dried food for a few months ahead. After 2020, some people understand the importance of storing food while many are still not catching on. We are not living in easy times. Eating out is not as important as having food at home first.
Food banks and soup kitchens are increasing in numbers and the quality of the food served is changing. In some cases restaurants will donate unused food to households that do not have enough to eat. There are several situations escalating this problem after 2020 making food production, delivery and costs more complicated.
In The Roaring 20’s Are Back I share how we are going back in time because it is showing its way around the corner. Almost 100 years ago our economy crashed and set off a lot of problems. This time we are aware that the economy is unstable so we can prepare in case our world shuts down again.
A time may come when there may be too many mouths to feed and not enough food for everyone to able to eat. Instead of making this happen, prepare now and stock up practically.
How Do We Keep Up With Inflation?
Preparation Is A Part Of The Equation
If you are a renter and can set some space aside to store extra food and water, do that. It is wiser to de-clutter and organize your place so that extra space is made for this inevitable investment.
Buy long shelf life items such as rice, flour, beans, water, instant yeast, soups, sauces, pasta etc. Avoid going for snacks, like cookies, until you have the main staples first. Consider snacks only after you have all the essentials. Assemble your pantries in an organized fashion so that the items that are to be expired sooner are easily accessible and older dates are in the back. The same applies for home owners. Create some space in your home to store food and it does not have to be much.
Nuts And Seeds
The highest quality snacks that provide long-term benefits are dried fruits, nuts and seeds. Although they are higher in cost compared to boxed shelved snacks, these items are better for you.
They provide nutrients that help keep your mind more balanced than what low quality snacks will do. If you find items like dates, prunes, dried apricots, almonds, cashews, raisins etc. on sale, buy them as they are a good investment. Purchase almonds, cashews and peanuts that are plain and not salted or sweet.
2. Start Cooking
Cooking your own food instead of buying it outside can save you a ton of money per person. If we were to calculate how much we pay for eating food in a day, it all adds up. On average if it is $10.00 a day, multiply it by 365 days in a year, that is $3650.00 a year per person.
A family of four is spending just under $15,000.00 a year on food alone, not including eating out. That is a lot of money spent on eating. When people go out they easily can spend $20.00 for one meal alone. That is double the amount of my example above, not including breakfast or dinner. The cost of eating out is really high. It takes my estimate of $3650.00 out the window and could easily be $8000.00/year or more on food per person. That includes going out to eat.
If you want to keep up with inflation, purchase an Authentic Vegetarian Homemade Cookbook. My first book is a practical investment for today and the future because I share low cost, long-term, high value, healthy vegetarian recipes. Thank you for your support.
Going Out Vs. Cooking At Home
It is easy to spend $100.00 on an average basic dinner date. Average means a franchise sit down restaurant in the city. With that same $100.00 you can buy my book-$15.99, a 10kg bag of atta (flour)-$20.00, 1 block of butter-$4.00, 1 bag of onions- $6.00, 2 bags of lentils, one red and one green-$10.00, one bag of milk-$6.00, oatmeal-$4.00, salt, pepper, cinnamon, sugar (optional), spices-$10.00, produce-$20.00. The total is just under $100.00.
This much food will last more than one week and can serve more than 21 meals. The 10kg of atta alone will yield approximately 300 rotis. If you ate 5 rotis a day you could eat that for 60 consecutive days. That is 2 months worth of bread per person.
One bag of lentils will also give you approximately 30 servings or more.
One bag of lentils will also give you approximately 30 servings or more. The savings when cooking your own meals is undeniable.
How much is spent on something that lasts for only a couple of hours to have to replenish again? If you want to save money, cooking is a good skill as well as a valuable long-term investment.
Inflation is evident at restaurants. The percent to tip has also increased and will keep going up. Eventually people will tip 30% or more just to enjoy eating out. Eating out could soon become an infrequent experience for many families.
Imagine not being satisfied with the food and service after not going out to eat for a few months. Not a nice feeling.
3. Rent For 5–7 Years In Your Lifetime
A good time in life to rent is in between your 20s-40s as well as when you are seniors. By the time you are in your 40s there is the potential to make a solid down payment for a property. This depends on a lot of factors though.
Renting for 5–7 years will help build your wealth and keep up with inflation. It is better not to rent for too long though because you are losing that money anyway. Therefore have a goal in mind on how long you wish to stay there. Hopefully it is not more than 10 years.
By doing so you can set aside extra money to eventually purchase your own property one day.
Do not be discouraged to go small on your first purchase though. Many people make the mistake of buying more than what they can pay for. It is better to start small than to buy bigger. With a goal in mind, the desire to achieve this is possible.
Less Stress When You Rent
Renters have many benefits over owners. Your main objective is to pay the rent, tenant insurance, monthly bills and that is it. There is nothing else to worry about. For a home owner, the costs and responsibilities are greater. So it is best for renters to live in a clean space and treat it like your home while building your Nasdaq for a future place to own.
Also, if you want to get out of renting and become an owner, use that rental place as a space to sleep and eat and spend the rest of your time building your wealth with a vacation here and there. This means earn money and find smart ways to build your investments.
Pay off your credit card and student loan debts so that it does not carry over after marriage. For most people it does. Maximize the rental duration by working full-time, using the space to sleep and eat and continue to build your wealth.
4. A Manageable Mortgage
A Home To Call Your Own-8 Ways To Keep Up With Inflation
Once you have built some wealth, enough to buy a property, get into the real estate market. This is your home. You need a property for yourself at the end of the day and will have to park that money somewhere.
Having a home is an investment and not a liability. As far as the definition of a what a liability and an asset is, a home that you pay a mortgage on is considered a liability. That is correct because you still owe money on that property. However, you are paying it off, investing in it, you are putting it towards a potential asset which is not a liability.
A property is a great purchase to consider once you have established a foundation. With a significant down payment on property you are keeping up with high inflation prices.
Interest rates are rising, which means homes prices may drop, but by how much? Even if they drop by 30%, the interest rates at that point will be a lot higher. You will pay more money paying off the interest for the loan, even the if price of the property goes down. It also does not factor how many people are still in need of a home today, which could keep the prices up for a while. The demand for a home remains high in many places.
In our world you cannot survive and build a foundation without getting in debt. Once you get into it though, try to pay it off as fast you can. Also, buy the smallest loan possible.
Interest Rates And Mortgages In the 80’s
Back in the mid 80’s when interest rates were up at 18%, house prices did not cost a million plus dollars. They were in between $250–400k for a nice large detached home. Today that same home is a minimum of $1.2 million or more in my city. Therefore you are spending a lot more energy to pay off a mortgage today than a loan back in the 1980s, for example.
Set a goal for yourself and shop around for a home once you are ready. Look for the smallest, least expensive place in the best area. Start off in the market small and build your wealth over time.
Those who are handy around the house are a huge asset for a home. Buying a house that needs work done on it is something a handy person can do. This means you can buy something less expensive and build it up with your skills. You help save a lot of money and raise the value of the home. A handy person is a great way to keep up with inflation along with a manageable low mortgage.
5. Invest In Your Investment
When you have your own home put the money you save towards paying it off. This way you directly invest in your investment. The majority of people need to rent before buying. By making mortgage payments, you are building your wealth by paying off your investment. The money you earn is going straight to your mortgage instead of someone else’s investment.
Whether you live in an apartment, condo, townhouse, cabin in the woods, a tiny home etc., we all need our own place. It is security for your peace of mind and your future. In order to buy a property, focus on a small, potential upgrade, condo, apartment or bigger, if needed. It will likely be cheaper than other properties around you. By paying off your mortgage loan you are increasing your asset value.
The housing market should have crashed in 2008. Since it did not happen our economy is much worse today, 15 years later.
Hesitant To Buy
Quantitative easing that started in 2009 put a band-aid on stopping a housing crash from happening. I was reluctant to buy a property assuming a market crash was around the corner, but nothing happened.
Prices continued to rise but it was not out of control yet, even though it was getting there. By 2016, after waiting several years for the markets to crash, which they did not, I purchased something small. Good thing because as of yet, the price still has not come down.
Start Small And Work Your Way Up
When will this crash happen? Maybe they will make it happen in 2029, the 100th year anniversary of the 1929 stock market crash. People aware of what is happening know that the housing market should have corrected over a decade ago and it did not.
Unfortunately, the debt may go as high as possible until they cannot take it any higher. Therefore have a small investment, like a small piece of property and work towards paying it off.
If the price of the property is over your budget, do not risk buying. For those who bought more than they should, I discuss the effects of it in The Roaring 20s Are Back, on what happens next.
If the city you live in is too expensive to buy a property, relocate to a smaller town where the homes are bigger and the cost is a little less. When you buy that mortgage just do not purchase a big one. Plan on having a mortgage you know can be paid off less than 10 years.
6. Car
Your sixth asset is your car. This is not some high priced luxury car, but a mid-priced range reliable car. An average looking car is a great asset in times of economic challenges. Older vehicles are gems because the cost of car parts are going up. Also more technology in the car means less control for you.
Pay Off Your Car
Even though cars depreciate in value the moment they leave the car lot, the price of cars remain high. Many people still have to drive around so a car is needed. However, a fancy one is not worth it, unless you can pay it off in full.
Another indication of a devaluing dollar is that car parts keep getting more expensive as manufacturers charge more money for spare parts.
If you have a car and it is paid in full, good! Take care of it. If it is older and you need repairs it will be easier to find the parts. They will not be as costly as higher name brand vehicles to replace and pay for.
Buy a car with less gadgets, one that is basic, reliable and dependable. Also it should be easy to find any replacement parts in case something goes wrong.
I do not have a sunroof or automatic adjustable seats and a tv screen in my car. It is an average middle class car, but it is practical and nothing to show off. The cars of the future will have full control over you. If they malfunction and you get hurt, the car companies will not take accountability. Not only will people pay over $40k for a new car, but one that controls you.
Own a reliable car and drive it until you cannot drive it anymore. Before that happens, invest in a bike so that you have some form of transportation, just in case. This is a great way to keep up with inflation and make good use of your money. New cars have too much power and control over our lives and that is room for disaster.
7. Grow A Garden
Our dependence on grocery stores and markets makes us vulnerable in times of instability. Relying on yourself is a great asset in today’s time. For those who know there is no possibility of doing this, that is okay. Hopefully there is always food available for you at the super markets.
For the ones who have some space to grow food, it is wise for us to grow a garden for so many reasons. You will save money, maintain your health, give room for those who cannot grow food to buy something, nourish the soil, the earth and more.
Weather patterns are affecting crops and food production. Those who have a home and land are going to be very important people in the future. Consider growing a garden in 2024 if you did not in 2023.
This includes investing in collecting seeds. Collect seeds from the produce purchased from the grocery store. You do not need to buy special organic heirloom seeds. If the vegetable tastes good and more can come from it, remove the seeds from your produce and keep them for your future garden.
8. Manage Your Health And Beauty
As we age this part of life gets harder and takes longer to manage, but we can still do a lot of it ourselves. The money you save on your own health and beauty compared to getting it done outside can be in the thousands of dollars. This includes gym memberships, spas, salons, massages, manicures/pedicures etc. A simple haircut alone costs $100.00. Something like cutting our own hair, if we can, is an easy way keep up with inflation. Do your own manicures, pedicures, facials, pluck your own eyebrows etc.
If you are a man, invest in a barber set and get someone to cut your hair every three weeks. Save $50.00 on average with each hair cut. This applies to men with less than a full head of hair who often go for a buzz cut at the barber shop anyway. Those who need a professional barber should not take my advice. I for example have a lot of hair but cut my own and save a lot of money.
A partner or friend could do it for you. All of these services do accumulate and factor in our financial health.
Create your own indoor gym. You will save a lot of money. Buy an indoor stationary bike or rowing machine, a treadmill perhaps and workout at home. If you can go for long walks outside or a nice long bike ride, even better.
In Summary-8 Ways To Keep Up With Inflation
When it comes to beauty, self-care and health we can save a lot of money doing it on our own. There is no doubt about it, age is showing on my face and body. However, doing my own health and beauty regime without buying all these services from outside is saving me thousands of dollars per year.
Buying a home and having a mortgage may sound counter productive in a time of high inflation. Buying a mortgage is something that is to be done practically and with caution. A mortgage over $500k that cannot be paid off in less than 10 years is too high.
However if this amount can be paid off within 5 years, that is much better. This is impossible for an average person, but it depends on what you spend, how you spend what you earn and how much you make. Someone can make $30k/year and be a millionaire, while another person can earn $100k/year and be bankrupt. It all depends on how we manage what we earn.
The lower your mortgage and the duration it takes to pay it off, the better. The more independent and financially secure you are, the greater value you add for the collective.
Debt is leaving unsavoury consequences behind for everyone. Our wealth is a part of our health. The better we have it managed the lesser the stress we build for ourselves and others.
Hopefully these 8 ways to keep up with inflation help you build a solid and secure foundation in the days, weeks, months and years ahead.
Originally published on October 25, 2023 on mcinthehouse.com
**Edited Version December 6, 2023**
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