Accommodating for Rising Inflation

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10.29.21

Accommodating for Rising Inflation


By definition, inflation is a general increase in prices and a decrease in the purchasing value of money.

Chances are, you’ve noticed the rise in prices this year at the grocery store, gas pump and at restaurants, to name a few. Top economic advisors warn that inflation will continue to rise well into 2022.

What does that mean for you? Unless you plan to receive a salary raise, it will now cost you more money to make everyday purchases. Therefore, you will need to adjust your budget to accommodate for the rise in cost of goods. Some examples of monthly budget adjustments are switching to generic food brands, reducing your discretionary spending, and postponing vacations. If you live on a fixed income, it is even more important to review and pay attention to your spending and where your money is going each month.

Take some time to think about your priorities. Avoid racking up credit card debt that will cost you even more to pay off later and always leave room in your budget to allocate toward savings.

We have several free electronic services to help you keep track of your finances. Set-up balance alerts, use mobile banking to review purchases and online banking to enroll in eStatements and manage monthly reconciliation. You can also schedule a complimentary consultation with a Provident financial advisor to help you set attainable goals.

You may not have control over the economic conditions, but you do have control over your spending and saving habits.

Schedule a Free Financial Consultation

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