Tips for dealing with rising inflation
Inflation is measured month over month and year to year. In the last 12 months, the measure of inflation has been 7.5%. That number is the largest percentage in 40 years.
Rising inflation does not only mean rising prices for consumers. It also means that the value of a dollar is lessened and does not go as far. For the average family, it takes $3500 more this year to buy the same goods and services as last year. That cuts off other things that people can make choices on such as going on vacation versus a new car or a car repair. People will have to take those choices more seriously than when inflation is down.
For people nearing retirement or those who are living on Social Security already, there’s been a large cost of living adjustment for social security, the largest in years at 5.9% which means those who have Social Security as their main source of income are going backwards right now. Barry Bigelow’s tips for those worried about going backwards is to review your goals, review your spending, make sure your budget is able to continue and also make sure that any cuts you make aren’t to any permanent costs like rent and utilities.