FYI Finance Presented by JPMorgan Chase

You’ve probably noticed that your grocery bill is higher than it has been lately. Or maybe shopping for spring clothes is more expensive than you’d like. Price hikes are everywhere right now, and the culprit is inflation.

Inflation is an escalation in the prices of consumer goods caused by factors such as production shortages, supply chain challenges or international conflicts. At present, these three elements have combined to create historic inflation. When it occurs, inflation is difficult to combat. Prices are rising for reasons that are generally well beyond our control, and increases seem to be everywhere.

But there are some things you can do to protect your portfolio in times of inflation. They range from basic budgeting to renegotiating the rates for your services. We can’t escape inflation entirely, but we can lessen its impact on our finances through strategic thinking.

Some expenses, such as groceries and gas, are non-negotiable. But when it comes to other purchases, especially big ones like a new TV or a new car, consider postponing the purchase until inflation starts to subside. In general, it is true that prices increase slowly over time. Yet dramatic inflation, as we have seen recently, is rarely permanent. You could save hundreds of dollars if you can wait to make that big budget purchase on an optional item. Moreover, the longer you wait, the more you can set aside for such a purchase. This may allow you to buy a nicer model or take out a smaller loan with a larger down payment.

Ask for a discount

This tip works best for services you’ve been using for a long time or areas of your financial life where you might be paying interest. For example, you will not be able to negotiate the price of your groceries. But you can contact service providers such as your insurance company, cable provider, or cell phone carrier and ask if any programs or rate reductions are available for loyal customers. Another good place to look is the annual percentage yield on your credit card. Call your repairman and ask for a lower rate to save on interest charges so you can apply that money elsewhere. The worst that can happen is to hear “no”. So there is no harm in trying.

Update your budget

The best place to start saving money is with a good old-fashioned budget. Even if you already have one, you probably did before inflation started to rise. To get an idea of ​​your spending in the current climate, take a fresh look at your budget and record the changes in your spending. Then adjust your allowances accordingly and cut unnecessary expenses to make up the difference.

To take a walk

Gasoline is one of the most purchased things with the most volatile prices. Gas prices are very high right now, and filling up a big car or van can be a costly undertaking. To help, consider walking or biking to nearby destinations and combining trips when running errands. You can also turn to public transport or carpooling in your area to reduce individual gas consumption when traveling. As a bonus, this tip isn’t just good for your wallet; it is also useful for the planet.

Inflation is an unfortunate reality in our interconnected economy. There is little we can do as individuals to prevent it. Nonetheless, you can mitigate its impacts with a few simple strategies that allow you to keep as much money as possible in your pocket until prices start falling again.

FYI Finance is presented by JPMorgan Chase. JPMorgan Chase is pledging $30 billion over the next five years to tackle some of the key drivers of the racial wealth divide.