Consumer prices have risen leading to food shortages in stores, a limited amount of certain goods we rely on, and higher than normal gas prices. All of these are red flags for inflation. What do we do now?
It is difficult to predict how long these difficult times will last, so the best thing to do is be real. Think about and plan ahead for what you do need. The main ingredient to slowing down inflation is when the Feds raise interest rates.
More people were able to save during the pandemic so now they are spending like there is no tomorrow. The spending habit is bigger than it used to be and that is why we are seeing shortages and unpredictability.
You may ask, how did this happen so quickly? During the pandemic more people were home and spending less. That meant many businesses had to close or lay off workers. Some people even took jobs online and started only shopping online. This caused a major influx in how business is done and where people spend their money. I know for me personally I had clients all over the world because of moving my work online. All of these changes, along with people now trying to spend more money locally is why we are seeing inflation. As demand increases, costs increase as well.
The best ways to navigate the uncertainties are:
1. Plan Ahead
2. Call around and get new estimates on your insurance and utitility bills – save money where you can
3. Save for an emergency – cash is always king
4. Talk to your neighbors/family and see who can help who
5. Reduce your driving or chunk driving locations together to save fuel
6. Ask for help when needed
7. Use what you need and give away what you don’t need/use
Remember that the feds keep an eye on what people are buying and how quickly things are changing. They also have the ability to slow down the market and therefore it is not necessary to over think or worry about the situation. Instead make smart moves and take action on what you can focus on.
If you are needing new estimates or a review of your insurance coverages? I highly suggest you call Heidi Rowan’s Insurance Company (503) 564-0080 who features Allstate and other insurance coverage options as well. You can go to her Instagram page to hear more or visit the Brilliant! Podcast for a conversation we had about inflation and insurance. Heidi’s company is able to help you find your best rates and they are really nice to work with!