Beat Inflation and Stretch Your Budget With These Tips

stretch your budget inflation save money daily expenses rising cost of basic goods weekly budget family spending tax refunds car insurance streaming subscriptions

By Lili Scott , Parent Herald Oct 01, 06:10 pm

The economic fallout of COVID-19 has led to the rise of prices of basic goods, and many families are feeling the pinch as they pay higher for food and other essentials. The Federal Reserve is not expecting this situation to blow over soon, which means everyone should start devising ways to stretch their budget to beat inflation.

Here are some money-saving tips to apply to ease the financial stress of a pandemic price increase:

1. Improve and adjust your weekly budget.

Whatever worked for your family before the pandemic is no longer sustainable and feasible in the current situation, so you have to rework and make adjustments to your weekly budget. Look for aspects in your family's spending that you can trim or completely cut off to free up some extra cash.

To streamline your system, use budgeting apps to track the money coming in and out and set spending goals to ensure that you can save something for a rainy day.

When you follow a budget regularly, you can minimize the excesses and prevent accumulating more debts, especially if you use credit cards a lot.

2. Cut back on some expenses.

Have you subscribed to services that you have not maximized? For instance, you might have one too many streaming subscriptions for entertainment during the lockdown, which may run up to more than $60 in a month. It might not seem that much, but that adds up to more than $700 a year, and you are likely not watching everything on these streaming platforms.

Consider canceling some of these subscriptions and sticking with just one or two services. According to Tom's Guide, Netflix remains the top choice for most households but be sure to include all members of your family in deciding what to keep and what to cut.

3. Use technology when shopping for the best deals.

There's one caveat to online shopping in that it's harder to keep track of which sites are likely to have the best prices. Most people go to Amazon because it has been well-established for decades, but you can buy some items sold at this site for a lower price elsewhere.

Use an online price checker that can find good deals, discounts, and coupon codes for you before you put anything on your online shopping cart. You can download these price checkers as a browser extension and then set up price alerts of some of your favorite products or essential items, so you will be the first to score these items at reasonable prices.

Also, use cashback apps when you're shopping online. If you're frequently shopping, these perks add up fast. Imagine the amount of savings you can enjoy with the help of technology.

4. Change your car insurance.

If you're driving less, it might be time to change your car insurance. Reduce coverage where appropriate because you could be overpaying in premiums. Before enrolling in a new or adjusted policy, shop around and get car insurance quotes from different companies to compare and study the best price with the most desirable coverage that works for your family.

5. Don't forget your tax refunds.

Thousands of income earners forget to claim their tax refunds from the IRS, and it's a very common scenario. The IRS said they are waiting to disperse $40 billion worth of unclaimed funds to beneficiaries.

Check with the agency if you have unclaimed funds, such as a pension, unpaid wages, or life insurance. Go over your tax returns for the last three years and check the government's site if you are eligible by checking any of these benefits.