April 11, 2023
How to Be an Inflation-Savvy Saver
Inflation is undoubtedly one of the buzzwords of 2023 so far. We’re all feeling the pinch of higher prices, be it at the gas station or at the grocery store, as consumer prices have risen faster than at any time in the past 40 years.* As much as we might all like to see big price slashes on our next shopping trip, most experts say that higher prices are not going away anytime soon.
Periods of high inflation serve as a reminder of the importance of saving, because tomorrow’s dollar will not be worth as much as it is today. And it’s important not to lose the good habits you’ve put into practice—like budgeting or saving for retirement—even as prices are going up.
Here are four steps you can take to be inflation-savvy with your money:
- Reevaluate your budget, and make changes, as necessary.
- Seek out high-interest savings accounts that will yield you a higher interest rate.
- Focus on your long-term goals (think: your retirement savings plan) and re-evaluate your investment strategy to make sure it aligns with your goals.
- Avoid making investment decisions that are based on short-term market events.