Inflation Squeezing Your Salary?

vise clamp inflation wrench
Photo credit: IgorYegorov/Adobe Stock

It is no secret that the cost of goods has increased dramatically over the past couple of years. Inflation has put a squeeze on my income and if you’re still breathing, I assume it has for you too.

I paid $75 to fill up my little car with gas this week. I was very used to that costing $40 or less. My family of five used to spend about $700 each month on groceries to eat comfortably. This month we will spend $1,400 on groceries and our eating habits have not changed. Inflation has significantly impacted what and how much I can buy.

I graduated in 2008. Since then, I’ve experienced many things beyond our control that impacted our financial situation. We can’t predict the future, but we can set ourselves up to handle most things that come our way. Here are three things I’ve learned over the years that have made this current squeeze very manageable.

1-Do a budget every month.

I’ve been budgeting for the past eight years. I’m not perfect and I can definitely tell a difference when I budget versus when I don’t. The first thing I do is write out all of my income. Then we list our expenses. Ideally your expenses are less than your income. If not, you will need to cut some expenses out. I remember early in my career how stressful it was spending more than I earned. If you have extra money, be intentional with it. Put it toward debt, savings, or fun depending on what you need.

Click here to read the other two tips.

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