How to Stay Afloat While Riding Through an Inflation-Impacted Reality

From planning home improvement projects to a trip to the grocery store and every stop in between, the pervasive pain of inflation has reared its ugly head. If there is any solace, maybe it’s that we are all in this together. Inflation impacts all age groups, racial and ethnic groups, and income levels. As consumers, if we can’t control or avoid it, how do we survive it?

Take the Road Less Traveled

Now is a great opportunity to be grounded in strong financial principles. Trimming the budget as needed and ensuring emergency savings are fully funded should always be a priority. Recent findings from a COUNTRY Financial® survey¹ show that some Americans are adjusting their spending by dining out less (48%), budgeting for groceries (29%) and waiting to upgrade technology (30%). Additionally, a substantial percentage of Americans (29%) claimed they will purchase less clothing, 20% have canceled or put off travel plans altogether, and 13% plan to drive less. Swapping a vacation for a night out might not seem exciting, but it can positively impact your budget.

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Raise Your Income

If there has ever been a reason to ask for a raise, it might be now. The current job market combined with increased living expenses can be an opportunity for more money in the workplace. However, increasing your income can be accomplished in other ways, such as a side job of dog walking, housesitting or meal delivery, or try turning a hobby into income. Whether you’re skilled in creative writing or refinishing furniture, look for ways to use your skills and what you love to do to make money.

Make Sure You’re Protected

We’ve all noticed the dramatic increase in housing and vehicle costs due to higher homebuilding materials and auto parts prices. Unfortunately, all of these increases can affect how far your insurance coverage will go in the event of a claim. That’s why it’s a good idea to review your coverages for auto and homeowner’s insurance to make sure you’re still adequately protected if something unexpected happens in the future. To find ways to save money, ask your insurance representative about adjusting your deductible or checking to see if you are eligible for any discounts. This may help offset the possible increased premium needed to properly protect you, your family, your assets and others.

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Prepare for Higher Retirement Costs

If you’re looking forward to retiring someday, know that inflation now means you’ll likely face higher costs down the road. That means you’ll need more money saved for retirement and should consider increasing your retirement contributions. Talk to your financial representative about options like upping your 401(k) contributions or starting a Roth or traditional IRA when you get your next pay raise to help you adequately plan for your ultimate retirement destination – whether that’s at home or on a beach.

Inflation is here, but a little planning can help make the destination to your financial goals easier to find. Evaluate your spending and look for opportunities to use your money wisely but know you don’t have to do it alone. Reach out to your local COUNTRY Financial representative and ask for help evaluating your financial goals and create a plan to reach them. Having a trusted partner as your co-pilot can make the journey a little easier.

About the Author: Scott Jensen is a Certified Financial Planner™ and a Manager of Financial Planning Support for COUNTRY Trust Bank (CTB). 

CTB is part of COUNTRY Financial, which is the marketing name for the COUNTRY Financial family of affiliated companies. Those companies include COUNTRY Life Insurance Company®, COUNTRY Mutual Insurance Company® and their respective subsidiaries, located in Bloomington. This material is being provided for informational purposes only. It should not be used or construed as investment advice or a recommendation of any security, sector or investment strategy.

¹The survey was created by COUNTRY Financial and compiled by Ipsos, an independent research firm. Surveys were conducted using Ipsos’ KnowledgePanel®, a national, probability-based panel designed to represent the general population and includes responses from approximately 1,330 U.S. adults for national surveys. The margin of sampling error for a survey based on this many interviews is approximately +/- 3.2 percentage points at the 95% confidence level.