August 30, 2022

Prices today have increased on everything from groceries to gas. Because we don’t know how long this period of high inflation will last, it’s important to take steps to make sure high inflation doesn’t wreck your budget.

1. Review your financial situation. Has your income changed? How much have your expenses gone up? Adjust your budget for any financial changes. A budget isn’t set in stone—it is important to make adjustments as life changes. If you don’t have a budget, get started with the online budgeting worksheet provided by our partners at GreenPath Financial Wellness.
    
2. Continue to build your emergency fund. When expenses go up, you may be tempted to stop saving, however, resist the temptation. Continuing to save money toward an emergency fund will help protect you from having to rely on credit when an unexpected expense like a medical bill or home repair occurs. Even small amounts add up over time and will help protect your budget. So, keep saving!
    
3. Re-Prioritize your monthly expenses. As the cost of basic necessities goes up, it’s important to analyze all expenses. Now is a good time to reduce or eliminate unused or unnecessary expenses such as subscriptions or streaming services. Reduce or eliminate discretionary spending such as dining out or entertainment. GreenPath’s Aligning Priorities workbook can help with these decisions.
    
4. Monitor your debt. As interest rates rise, it’s important to develop a strategy to pay off high-interest debt which will help you save money and free up cash flow in your budget. GreenPath can help you develop a plan to eliminate debt.
    
5. Sharpen your shopping skills. During high inflation, it’s all about the sales. Compare prices and use coupons. Browse digital flyers for stores near you with Flipp. Download your favorite grocery store’s app to check for coupons or use a coupon website such as coupons.com. Dollar stores and discount stores offer a variety of inventory at reasonable prices. Stock up on nonperishable items and swap out brand name items for the generic or store brand. You can also utilize cash back and rewards apps for shopping such as Ibotta and Fetch Rewards. Analyze the best time to make a large purchase to get the best price using camelcamelcamel.com.
    
6. Keep your credit history in good shape. A good credit score allows you to get the best interest rates on credit cards and other loans. Always paying your bills on time will help keep your credit score high. You can check your credit report for free at annualcreditreport.com. In addition, NE PA Credit Union members have access to My Credit Manager. Members can log in to their NE PA account to view their credit score and report for FREE!

Financial Education & Counseling Services are provided through our partner GreenPath Financial Wellness, a nonprofit organization. A financial counselor will help you create a budget, review your credit report, and discuss debt repayment options. Get started at greenpath.com/nepa or call 877-337-3399. The call is free and confidential.