Good Lifestyle

Although inflation has stabilized in the United States this year, in many American cities, the prices of essential elements such as housing, gas and public services continue to increase . At the same time, higher interest rates make purchases of large tickets such as houses and cars more expensive while increasing credit card debt. Savers can benefit from a higher interest, but if you do not have the right savings account, you could throw money every month. And these are just a few potential traps. News recently asked financial experts how to extend your budget and keep your money growing when prices increased. These are major errors that you should avoid during inflation period.

The consolidation of the high interest credit card debt on a 0% card can save you serious money, especially now. "With interest rates, the average APR credit card now exceeds 21%," explains the expert Andrea Woroch . "With regard to credit card debt, the fastest and easiest way to dodge high interest costs is to use a balance transfer card." These cards allow you to repay your debt without interest up to 21 months. "Not only does this allow you to repay the debt faster and save interest, but for consumers who find it difficult to find additional money each month for savings or simply to pay the bills, this decision Can give you the breathing room in your budget while getting back against inflation, "explains Woroch. You can compare balance transfer cards on sites like Cardrates.com .

"The best way to combat higher consumer prices is to maximize the money back on each transaction," said World. "Not doing it is a missed opportunity to help repay your credit card bill or the next expense you need to pay." She advises to obtain a reset card which gains rewards on the purchases that you make most frequently or using money backing such as Couponcabin.com For store or online purchases. "You can even transform your receipts into money by taking photos of each receipt using the Recovery application "Said Woroch." You will earn points on free gift cards to compensate for future grocery and gas purchases. "

"With the increase in interest rates, your economy can earn money if you are warned of where you save," said World. "The safest place at the moment is in an online savings account at high yield (HYSA) since the money is easily accessible, there is no penalty to be removed and you can make more than 5 % interest. " For example, Bread savings Bears an annual yield of 5.15% (APY) on savings for the moment, compared to traditional banks which offer approximately 0.26% APY. AE0FCC31AE342FD3A1346EBB1F342FCB

"As interest rates are climbing, the cost of borrowing increases. Many forms of debt, such as credit cards or credit lines, have variable rates, which means that interest that you must increase alongside market rates, "explains R.J. Weiss, a certified financial planner and founder of The ways of wealth . "It is an intelligent strategy to avoid taking an additional debt at a high interest rate during these periods and to prioritize the reimbursement of any debt of poor existence."

High interest bank accounts will not earn an APY of 4% forever. "Economic conditions change and yields on these accounts can drop," says Weiss. "If you are counting on these income, in particular for long -term objectives such as retirement, it may be useful to consider more stable and fixed rate options such as deposit certificates (CD) to lock current prices." The purchase of a CD at the current interest rate will bring you more money if these rates fall in the coming months or years.

"Economic uncertainties, often accompanied by an increase in interest rates, can lead to job losses or a reduction in hours as companies seek to reduce costs," says Weiss. "Getting away from a lifestyle of paying check for the creation of robust emergency funds can provide a financial stamp. Objective for at least three to six months of subsistence expenses to cover any unexpected income disruption."

"As prices increase, it is important to adjust your expenditure habits accordingly," explains Ricardo Pina, founder of The modest wallet . "Do not forget: if your expenses exceed your income, you will soon find yourself in debt and you have trouble maintaining a good quality of life." Create a budget that reflects your current financial situation and makes necessary adjustments, such as reducing unnecessary expenses or the search for means to increase your income.

"It is easy to fall into the trap of making impulsive investments, especially when you feel obliged to make a quick decision in the face of an increase in inflation," said Pina. "You might think that throwing your money into the latest hot actions or investing in a promising start-up is the key to compensating for the impact of the price increase. However, acting on the impulse without a well thought out plan can cause important financial losses. "He advises to do in -depth research, consult financial advisers and consider your long -term financial objectives before taking investment decisions. "Always remember: patience and prudence can be powerful allies to maintain your financial stability," adds Pina.

"Inflation can have a spectacular impact on certain industries and sectors of the market. The increase in inflation can lead to the underperformance of the actions of consumer goods companies, while the actions of the natural resources sectors can see a Increase in value, "explains Pina. "By diversifying your investment portfolio in various asset industries and classes, you can minimize the impact of inflation on your overall financial health. It also helps to examine and regularly rebalance your portfolio to make sure it Alignments with your risk tolerance and your financial objectives. "

"Hang on with major unforeseen purchases of depreciating assets unless you are essential," advises James Williams, founder of Techpenny.com . "Large tickets and cars are going quickly. Consider less

Expensive alternatives or while waiting for prices or rates to decrease to treat you with non-ends that do not maintain their value. "Consult Andrew Lokenauth from Befluentinfinance.com : "Concentrate your expenses on needs, not desires. Distinguish liabilities that cost you money from assets."

Make sure you are paid for what you are worth, whether it is a new job offer or a long-standing position. "Do not presume increases in the standard cost of living," explains Lokenauth. "The market research rates aggressively. Given high inflation, negotiate wages according to real growth and merit. Consider looking for more paid employment opportunities if your current employer will not remain competitive."

The price increase could try to pursue quick victories on the stock market. It is often an expensive error. "Consider long -term investments as a state of mind and an approach rather than a class of individual assets", advises Seth Wunder, CFA, Director of Investments and Director of the Subscription Service for Consumers' Finance Acorch . "With a long -term investment strategy, you remain focused on making long -term gains even when the volatility of the short -term market and your emotions attract you in the other direction."

This is one of the most common errors cited by the experts with whom we talked. "When the market falls, it is natural to want to stop bleeding and sell losing assets," said Wunder. "But remember, historically, the market tends to reward a long-term perspective-each market slowdown in the history of the United States ended with an increase."

"Instead of simply investing a significant sum, investing money regularly can help you build enough to give you a strong financial future," said Wunder. "Start with $ 5 and take a step ahead. The earlier you start, the more the money has a chance to grow.

"Your goals can also help you avoid any instinctive reaction," says Wunder. "Depending on where you are in life, your long -term goals can be 10, 20 or even 30 years in the future. Someone who plans retirement, for example, can have a few decades until this Let them reach their retirement objective. What especially on the market today will probably have no impact on their investments in a decade. "

"In times of economic uncertainty, it is so important to remain informed and educated on financial issues. Ignorance is not happiness with regard to your money," explains Pina. "Do your research, read the financial news and ask experts to advice on experts. Do not rely on hearsays or rumors when you make important financial decisions. By remaining informed, you can better understand how inflation affects your finances And make smarter choices to protect you from potential riques. "

During the price increase in prices, the management of "lifestyle flucture" is particularly important. "The flutter of lifestyle is essentially an increase in expenses due to improving his lifestyle," said Jonathan Merry Moneyzine.com . "This happens because of self -control, or its absence. Most of the time, people who suffer from lifestyle inflation are unconscious to spend more and more as their grade of pay increases. "" In the inflationary era, this essentially means that you spend more and more for less and less, potentially reducing the savings or investments that can strengthen your financial future.

In relation: 11 Easy things you can do to slow down aging

"The worst thing is to fall into the reflection trap on reflection is there to stay," explains Certified Financial Advisor Greg Wilson , who retired at the age of 42. They go up and down. "" Wilson remembers that his father is investing in real estate in the 1980s. "Inflation has made him a lot of money. These days, he is all dismissed on politics and inflation, forgetting that it is The inflation that helped him make a fortune first, "he said. "Don't let yourself be taken too much in the now. Keep an eye on the future."