Hey there, priceless peeps! 🐥
This week we will be covering everything you need to know about inflation and how to avoid falling behind in your finance journey. I’ll be sharing some tips on how you can make your cash go farther. Keep reading for all the deets!
– Priceless Tay 💜
🤫 Let’s fill you in on the secret
This week talking about something that is affecting everyone… INFLATION.
But not many people are talking about the direct effect it has on Gen Zs. We’re the ones just starting out in our careers, trying to make a name for ourselves. But with rising prices, it’s becoming harder and harder to get ahead. There are a few things we can do to figure out how to combat inflation. Today I am going share some tips to maximize the buying power of your dollars.
Given the skyrocketing costs of virtually everything these days, what moves should you make with your cash for the long haul? 💰
We all know that when things become more expensive, it hurts our wallets and savings. But don’t worry, there are ways we can prepare for this and make the most of our money.
Here are a few things we can do to fight against rising prices ⬇️
- Check your interest rates: If you have a checking or savings account, you gotta check the interest rate you’re getting on your deposits. The national average savings rate is usually lower than inflation rates, which means your bank’s interest might not be enough to fight inflation. So, if you’re not getting much interest, it’s time to shop around for a better savings account. Earning more interest is a smart way to limit the impact of inflation, and there are lots of savings options out there to help you do it.
- Open a High-Yield Savings Account: Opening a high-yield savings account can actually help limit the impact of inflation. These accounts offer better-than-average interest rates (APY), which means you can earn more in interest over a year. Plus, they have compound interest, which means your earned interest will earn interest too! This can protect your short-term savings and the purchasing power of your dollar.
- Keep investing in your long-term savings: I know the stock market might not seem like the best place to put your money right now, but don’t freak out and sell everything! Even though the stock market can take a hit during inflation, history proves that it usually earns an average return of 8% to 10%. And while this doesn’t guarantee future growth, investing is a smart way to grow your retirement savings. So, don’t panic-sell your stock portfolio, guys!
- Make a Budget: If you haven’t made a budget yet, now’s the time! Check out how much money you make each month and where you spend it. Inflation means prices for everything are higher, so look for sales and bargains to save some cash. Don’t be afraid to shop around for the best deal. Take a look at your regular expenses, like subscriptions or eating out, and see if you can cut back. Save some gas money by doing all your errands in one trip and consider taking a local getaway instead of a big trip that requires driving or flying far away.
- Get a cash-back credit card: Want to make your money go further? A cash-back credit card is the way to go! When you use it to buy stuff, you get some of that money back as cash! Check out the cards I use for everyday spending by clicking here!
- Beef up your Emergency Fund: When inflation goes up, the economy takes a hit. We don’t know what’s gonna happen, so it’s crucial to focus on boosting your emergency fund. Even if inflation chills out later on, the pros say you should always have enough cash to cover three to six months of living expenses.
- Invest in your home: You know how the housing market’s been going crazy lately? Well, even when prices are high, investing in your home can pay off in the long run. So if you’re already a homeowner, think about some killer upgrades you can make. And the best part is you don’t gotta break the bank to do it… DIY it!
One of the best ways to beat inflation is by investing your money! 💰📈
While it may seem intimidating or like something only boomers do, investing can actually be a great tool for building wealth and making your money work harder for you. By putting your money into stocks, bonds, or other investment vehicles, you have the potential to earn returns that outpace inflation.
Now, I know what you’re thinking – “But I don’t have a ton of money to invest!” That’s where apps like Robinhood, Stash, and Acorns come in. They let you start investing with as little as a few bucks, so you don’t need to be a millionaire to get started.
Investing may not be the sexiest topic, but it’s an important one. Don’t let inflation eat away at your hard-earned cash – start investing today and watch your money grow!
📰 In the news:
As someone who has directly felt the effects of inflation on my generation, I had the opportunity to share my personal experiences with Newsweek. If you want to dive deeper into the topic, I’ve got you covered! I’ll be breaking down the latest news on inflation and what actions the Fed is taking. So, stick around and let’s explore this topic together!
Why it matters
Inflation is a hot topic, but not everyone understands the direct impact it has on Gen Zs who are just starting out in their careers. Rising prices are making it increasingly difficult for them to get ahead. Inflation is not just about the rising cost of goods and services, but also about the impact on mental health and well-being. The threat of higher interest rates isn’t appealing either, especially for those looking to buy a car, take out student loans, or get on the property ladder. Higher rates make borrowing more expensive, which may lead to more unemployment, with younger workers at greatest risk.
By the numbers
The Fed has put up interest rates from .25 percent in February 2022 to 4.5-4.75 percent today, and they could jump even higher if Powell persists with his war on inflation this week. Short, sharp rate increases, coupled with the loosening of banking legislation in 2018 that Powell ran with, sowed the seeds of the collapse of Silicon Valley Bank (SVB) and Signature Bank earlier this month. The U.S. housing market is crumbling under the weight of higher mortgage rates and rock-bottom affordability. The last line of Walsh’s report also underscores how Powell’s Fed “The last line of Walsh’s report also underscores how Powell’s Fed has failed to maintain price stability: “Two years of record appreciation caused housing wealth to soar by $11 trillion. By 2025, house prices will be back to their late-2021 level, eliminating an estimated $4 trillion in housing wealth.”
The big picture
Inflation is making it even more difficult for first-time buyers to enter the housing market. While big price declines have only affected the top tier of the market, the cost of first-time buys in particular remains “sticky.” A small decline in inflation would not be enough to ease the affordability problem. If inflation continues to rise, it will take a significant bite out of household budgets and it will take a Herculean effort to buy a house. The Fed has failed to maintain price stability and, as a result, inflation is having a profound impact on the financial well-being of Gen Zs, who are just starting out in their careers.
🧋 Taylor’s Toolkit
We all wanna live our best life, but let’s be real – the economy’s not exactly poppin’ off right now. So, we gotta save our coins where we can. That’s why I gotta tell you about these CVS deals.
I was just at their epic beauty event and we talked about how to step up your self-care game without breaking the bank! You gotta check it out – it’s full of tips and tricks to keep you looking and feeling your best without spending crazy amounts of cash. Hit the button below and watch the full interview. Your wallet (and your skin) will thank you! 💰💁♀️
That’s it for this week!
We’ve just wrapped up our weekly discussion on this ongoing problem of inflation and how it’s been wreaking havoc on our wallets. But fear not, because now we’ve got some tricks up our sleeves to help you dodge those price hikes and stay on track with your financial goals! Putting these tips into action will help stretch your cash and your future self will thank you!
Stay Priceless and see ya next week peeps! 💜