How Do You Make Enough Money During Inflation?
Historically speaking, salaries have gone up around 3% annually across the U.S. In 2022 this number was slightly higher at 4.6%, but that still is no match for the 8.5%+ inflation rate in the U.S. that same year. Making enough money during inflation isn’t easy, but there are still things you can do to help yourself make money. Check out these tips to help you deal with inflation easily.
Use These Tips To Make Money During Inflation
Cut Discretionary Spending
With inflation creeping up, your daily expenses are going to cost more while your income may remain the same. The first thing you should do is cut your discretionary spending. This means taking note of everything you spend and cutting back on certain items. Cutting spending will increase your cash reserves and help you to remain neutral when it comes to income and expenses.
Consider A Second Job
While it may not sound ideal, getting a second job or starting a side hustle during times of economic uncertainty is one of the best solutions to make money during inflation. This could be as simple as picking up a few extra hours every week at your primary job or starting a side hustle in something you’re good at.
You could start helping out a friend or acquaintance with something like yard work or babysitting. You could even sell old or extra items that you don’t use. With the extra income, you can adjust your investments with the strategies below to further protect you against inflation; but if your income remains the same, you should not increase your investments overall.
Invest In TIPS
If you want to re-route your investments to make more money during inflation, consider investing in Treasury Inflation Protected Securities or TIPS. These are securities that protect against purchase-power erosion and adjust to inflation periodically. TIPS are fully backed by the federal government, giving you confidence that you’ll receive your principal back in full and then some.
Keep Short-Term CDs
Certificates of deposit usually have a maturity term of less than one year, meaning your money is invested within your bank for a short time at a fixed interest rate. Keep any CDs you have previously set up until their finalization date to make guaranteed money during inflation. Generally speaking, this is a safe place to keep your cash for the time being.
Keep Your Properties
Single-family homes tend to do best when you have to deal with inflation. If you locked down a lower interest rate before rates went on the rise, your home is likely appreciating while your payments remain manageable. If the interest rate on your mortgage is on the high side, consider refinancing once conditions improve to lower your monthly mortgage bill.
Buy Short-Term Bonds
Short-term bonds are given over one to four years. Once you redeem the bond, you’ll get back your principal investment plus any interest earned. With inflation on the rise and stocks in a bear market, short-term bonds currently average a 4% interest rate. You can buy bonds from the Treasury, corporations, municipalities, or agencies. Each has a different risk level you can choose from.
Another way to make money during inflation? Invest in commodities. Commodities include raw materials like agricultural products, oil, gas, and metals. These products tend to increase in price alongside inflation – remember gas prices a few months ago? If you’re diversifying your investments, invest a small amount in commodities as a hedge against inflation, but do note that they are risky and sometimes unpredictable.
Use Payday Loans To Help With Emergencies
With inflation running up the costs of expenses, you may be worried if you have an urgent bill and no cash to pay for it. A payday loan from Nevada Title and Payday Loans, Inc. may be a good solution for you if you need cash fast and are currently employed. These loans are given for $500 amounts and the process takes as little as 30 minutes.
You could have cash by the end of the day to fix your home or car, keep the lights on, or cover another emergency expense. To apply for a payday loan, you need to be 18 years or older with a driver’s license or state-issued photo ID, your most recent paycheck, and a blank check from an active checking account in your name.
Simply fill out the form on our homepage today and a representative will give you a call. Then bring your required items to the nearest Nevada payday loan store. Once you meet with the representative, they’ll look over your documents and answer any questions you may have. If approved, you’ll have your money that same day or the next work day.
Get Cash Against Inflation Today
Getting ahold of more money during inflation can be tough. But with these tips, you can actually learn how to deal with inflation easily. And if you have an urgent bill that needs to be dealt with immediately, a payday loan from Nevada Title and Payday Loans, Inc. may be able to help. Don’t sit and stress any longer – fill out the online form to get started on the simple process today.
Note: The content provided in this article is only for informational purposes, and you should contact your financial advisor about your specific financial situation.