May 15, 2023
Inflation is affecting your savings. Here are some tips to ease its impact.
Inflation increases the prices of goods and services over time, and it affects everyone who buys or sells anything. Inflation can also take different forms, some of which are more obvious than others. With these financial wellness tips, you can maximize your savings and hopefully save extra cash that should ease out the impact of inflation on your finances.
1. What is Skimpflation?
In August, 64% of US consumers said they were worried about "shrinkflation," or products size/weight becoming smaller while prices remained the same or increased. According to recent reports, another form of hidden inflation is on the rise, the "skimpflation," where companies reformulate their products or change the quality of their services to cut costs. Research shows that bad customer experience is a growing trend, while consumers have noticed a decline in the quality of products they buy, from toilet paper to vegetable oil.
2. Maximize the Return on Your Savings
Financial experts say that now is the time to shop around to find the best rates to build your savings account. The first step is to check with your bank about available options. Next, check out digital-only banks. They tend to offer significantly higher rates and lower fees than brick-and-mortar institutions. Most importantly, charge cards must be paid in full every month or carry hefty fees. Opening a savings account on a digital-only bank is quite easy, and the entire process is done online. Your money (up to $250,000) is safe as long as the bank is insured by the Federal Deposit Insurance Corporation (FDIC).
3. How to Make Extra Money Renting your Car
If you are not currently using your car as much but don’t want to sell it, you can make extra money by renting it to other drivers online. Turo is available in all 50 states. You can have the renter pick up the car from a designed location or you can bring it to them. "You'll get paid between 60% to 90% of the trip cost (the rest goes to Turo), depending on the protection plan you choose." According to Turo, the average host "earns $10,516 per year. That’s more than $876 per month, which means you’d make your $500 monthly quota in about two-and-a-half weeks." If you worry about possible damages, the companies offer several insurance policies. Drivers cannot pay in cash. Therefore, the company will always have a credit card on file if anything happens to your car.
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