Periodically, the economy will experience high inflation, and while there’s uncertainty in such climates, markets will eventually calm down. Rising prices put a strain on household budgets, and it can be stressful. But there are ways you can make your money go farther and be in the strongest financial position possible.
Develop a budget
Higher prices mean you may need to be more strategic about spending to stretch your income. Successful money management starts with a budget. Develop oneto identify where your money is going. What do you spend money on that you don’t need? Where have you been overspending? A budget helps you focus your spending on essential costs like housing, food, transportation, medical bills and other necessary expenses.
Take advantage of your bank’s financial management tools. Our Personal Financial Management(PFM) can help you get started and offers ways to track your spending and manage your budget within our Online and Mobile Bankingtools.
Cut down on everyday spending
Like most people, you still have to make ordinary purchases. To save money, consider buying fewer products or switching to a less expensive substitute. Look for better deals on what you need and try reducing items you already pay for. Here are some ideas to lower daily costs:
- Learn to cook—Skip the takeout and opt for a home cooked meal instead. Grocery stores often produce meals that are thriftier than most restaurant fare.
- Avoid luxury expenses—While it may be tempting to invest in fun activities or events, try opting for inexpensive alternatives like a game night with family and friends instead of going to a concert or show. Remember, it’s only temporary; the economy is cyclical and inflationary periods pass.
- Conserve on gas—Small changes in your driving can reduce gas costs significantly. Think about carpooling, consolidating trips and driving the speed limit. Your car will run more efficiently when your tires are properly inflated and reducing your acceleration and easing on the brakes also helps you save.
- Lower your energy bill—Remember to turn off lights when leaving a room and unplug electronics when not in use. Keeping your thermostat at a steady temperature rather than adjusting it frequently can also help lower your heating bill.
- Cancel unnecessary subscriptions or fees—These can add up and you may be throwing money away on subscription or streaming services each month. There are personal finance apps available that can help track down what subscriptions you’re using and help you cancel them.
Don’t let inflation stop you from investing
A period of high inflation may seem like the wrong time to invest, but it’s important to continue making regular contributions—no matter what’s happening in the economy. Investing helps you maintain and build your wealth over time. If you’re facing budget constraints, consider reducing your contributions for a short time until you can build them up again.
Your banker can be a helpful resource as you advance your financial goals. To speak with a finance professional, consider using our Banner Investment Services. Our Banner Investment team members can help protect your earnings and provide comprehensive investment strategies.
Discover what works for you
While no one can predict what economic events will unfold, the above suggestions can help you financially prepare for what’s around the corner. Whatever money tactics align with your lifestyle, start putting them to use today to stay ahead—in any economy.
FAQs
And when you say that you need to stretch your money or stretch every dollar, it means that you are going to budget your money so that you don't spend too much of it.
How do you stretch a dollar? ›
Making Your Dollar Last Longer
- Make Meals at Home. Cooking at home provides more filling meals as well as a greater quantity of food than just going out every night. ...
- Buy Generic Products. ...
- Consider Kicking A Habit. ...
- Use Your Student Discount. ...
- Use Inexpensive Transportation. ...
- Comparison Shop for Items You Want to Buy.
AI Feedback. The phrase 'stretched budget' is correct and usable in written English. You use it when you want to refer to a financial plan with limited resources. For example: "My stretched budget meant I had to forgo a vacation this year."
How to stretch your dollar at the grocery store? ›
Stretch your food dollars
- Keep a running grocery list.
- Budget the amount of money you have to spend on food per week.
- Do inventory of what you have on hand before you shop.
- Plan meals for the week using grocery circulars, coupons and in-store sale items.
- Eat before you go shopping, so you will not impulse buy.
Cut down on everyday spending
To save money, consider buying fewer products or switching to a less expensive substitute. Look for better deals on what you need and try reducing items you already pay for. Here are some ideas to lower daily costs: Learn to cook—Skip the takeout and opt for a home cooked meal instead.
What does stretch mean financially? ›
"be a financial stretch" is a perfectly correct and usable phrase in written English. It is generally used to describe a situation where a certain financial expenditure may be difficult or challenging to afford. For example, "Buying a new car would be a financial stretch for me at this time.". exact ( 3 )
How to turn $100 dollar into $1,000? ›
10 best ways to turn $100 into $1,000
- Opening a high-yield savings account. ...
- Investing in stocks, bonds, crypto, and real estate. ...
- Online selling. ...
- Blogging or vlogging. ...
- Opening a Roth IRA. ...
- Freelancing and other side hustles. ...
- Affiliate marketing and promotion. ...
- Online teaching.
Best Places to Visit Where the Dollar Is Strong
- South Africa. South Africa/South African Rand. ...
- South Korea. South Korea/South Korean Won. ...
- Japan. Japan/Japanese Yen. ...
- Argentina. Argentina/Argentine Peso. ...
- Hungary. Hungary/Hungarian Forint. ...
- Chile. Chile/Chilean Peso. ...
- Colombia. Colombia/Colombian Peso. ...
- Vietnam. Vietnam/Vietnamese Dong.
8 ways to stretch your paycheck further
- Follow a budget.
- Reduce non-essential spending.
- Eat what's already in your pantry.
- Spend wisely on groceries.
- Avoid impulse purchases.
- Set monthly savings goals.
- Automate your savings.
- Shop around for insurance.
be frugal be prudent be sparing cut back cut corners keep within means make ends meet meet a budget pay one's way pinch pennies run tight ship tighten one's belt. stretch a dollar (verb as in scrimp) Strongest matches. cut back skimp.
From Longman Dictionary of Contemporary Englishnot stretch to somethingnot stretch to somethingBritish English if someone's money will not stretch to something, they cannot afford it The budget won't stretch to a new car this year.
What is stretch payment? ›
Stretch Pay enables you to split payment for your pledge into smaller amounts. The number of installments depends on the creator and is the same for every backer. The creator also sets up the minimum amount of pledge that unlocks installments.
What does stretch a dollar mean? ›
dollar: a unit of currency, money. stretch: to make something bigger or longer by pulling on it. further: the comparative form of far - a long distance away. Literally, the expression means to make money go a long distance by pulling on it.
How can I stretch my dollar? ›
Some money stretching moves might include negotiating with (or switching) service providers, putting a bit more money towards debt reduction, knocking down (or eliminating) monthly bank fees, reducing the temptation to make impulse purchases, and finding ways to make your savings grow faster.
How do you stretch $50 at the grocery store? ›
How to Stretch Dollars at the Grocery Store
- Stretch time between supermarket visits.
- Plan ahead.
- Buy produce on sale and in season.
- Buy foods whole.
- Schedule prep work.
- Buy in bulk when possible.
- Make meat the accent.
- Make soup.
When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation corresponds to a reduction in the purchasing power of money. The opposite of CPI inflation is deflation, a decrease in the general price level of goods and services.
What does it mean when a currency falls against the dollar? ›
Currency depreciation is a fall in the value of a currency in terms of its exchange rate versus other currencies. Currency depreciation can occur due to factors such as economic fundamentals, interest rate differentials, political instability, or risk aversion among investors.
