What goes up must come down, right? Inflation seems to be an exception.  As inflation rates continue to climb, many families are worried about how they will afford the increasing cost of living. Here are a few ways to reduce the impact inflation has on your finances, with links to other great articles for more tips on each idea.

Make more money.

Cut your expenses.

Added tip: Only use your credit card for purchases you can afford and will pay off in full each month. Unpaid credit card balances are subject to high interest rates that erode wealth and negatively affect your monthly cashflow.

These few simple tips can put hundreds of dollars in your bank account every month!

Invest wisely.

Added tip: Be mindful of rising interest rates as it pertains to your debt. There is a good chance your debt is based on a variable interest rate, which means it will get more expensive as interest rates rise. Even fixed rate mortgages present risk as the rate will likely be higher at your next mortgage renewal date and would then result in higher monthly payments &/or a longer amortization period (meaning it will take longer to pay it off). As your savings rise, you may decide to redirect some of that savings to debt repayment.  Keep an eye on the interest rate on your debt to ensure it doesn’t exceed the rate of return on your investments.  

The secret to living a Wealthy Life is to spend less than you earn! You will always have more than you need if you live by this philosophy, and remember, this period of volatility shall pass.  Focus on what you can control and you should be well positioned to ride through this inflationary cycle with ease.

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