4 Tips for Managing Rising Inflation
The papers have made for grim reading recently with every front page proclaiming more bad news about the economy. In April the inflation rate hit a 40 year high at 9% with ‘apocalyptic’ price rises globally being predicted by the Bank of England governor. Economic forecasters now think that inflation rates will rise further in 2022, but begin to come down next year.
Whilst we wait for the government and the Bank of England to decide what action to take to control price rises, each one of us can take steps to manage our own rising inflation. The Harpur Wealth Management team has come up with 4 tips to help with the financial impact we’re currently facing.
1. Take Control of Inflation Where You Can
Electricity, gas, and fuel prices are all out of our control. Whilst we may be shocked by the size and rate of the increases, there’s nothing we can personally do to bring down the cost. Managing rising inflation on a personal level is possible though, by auditing the financial outgoings that you do have control over.
- Food. Instead of doing all your shop at the local supermarket, try local markets for fresh produce, meat, bread, eggs etc. Often the prices are much lower, and you’ll be benefiting local businesses.
- Clothes. Join the growing number of consumers who are repairing and upcycling their clothes rather than buying new. Sustainable clothing is the latest trend, so get involved, or initiate events in your local area.
2. Understand How You Spend
The headline inflation rate doesn’t impact households in a uniform way. Each family spends their monthly income differently and will therefore be impacted differently. For example, if you have an electric car, you’ll be less concerned about fuel price rises.
Paying digitally has encouraged all of us to drift when it comes to knowing exactly what we spend our money. Getting a clear idea of what you spend and where you spend it will give you a better sense of what your household’s personal inflation rate is.
3. Ditch the Defunct Direct Debits
We all have them; the gym memberships that seemed like a good idea, the free subscriptions we forgot about, not to mention healthy eating boxes that we no longer consume. Take a trot through your direct debits and get rid of anything that is no longer relevant.
4. Calculate the Cost of Today’s Inflation on Your Future
Whilst we’re all dealing with the impact of inflation rates in the here and now, it’s important to bear in mind the future impact they have on our savings, and retirement planning.
At Harpur Wealth Management our financial advisors help clients to understand their current finances, and to forecast future spending with inflation taken into account. This allows you to work out how much you will need in retirement, for example, and check whether your assets – pensions, investments, property, savings – are sufficient to cover it. If not, we’re here to help you to plan for the amount you need.
Would You Like to Review Your Future Finances?
If you feel that this would be a good time to check in with financial advisors about your future plans, or retirement, we would love to help. Harpur Wealth advisors can work with you to plan realistically, using forecasts that integrate current economic trends. The Harpur Wealth team provides professional expertise and a bespoke service, with the aim of setting and achieving long-term financial goals for you, your family, or your business.
Why not book a free consultation today with a Harpur Wealth Advisor? Call us on 01234 924620 or use our online form.
This article is for information only and must not be considered as financial advice. We always recommend that you seek independent financial advice before making any financial decisions.
The value of your investment can go down as well as up and you may get back less than the amount invested.
‘The Financial Conduct Authority does not regulate taxation advice’