Check out the conversation Angela Ganote and I had about how you can create room in your budget for the time being.
As you’ll see toward the end of the segment we ran out of time to hit everything I was hoping to touch base on so I thought I’d add those couple of items here:
- If possible, avoid relying on credit cards, especially for those non-essential expenses. Eventually the economy will recover, inflation will subside, and we’ll be back to “normal” and having the burden of credit card debt to pay off on the other side will add to any stress you’re currently experiencing. It won’t be possible for everyone to avoid relying on credit cards but making it a goal and committing to limiting usage to essential expenses.
- Inflation hits us all but it doesn’t impact everyone equally. There are many households where inflation is really going to create a burden on their budgets. There will also be households where they’ll notice the inflation but it won’t impact their standard of living in a substantial way and they’ll be able to absorb the inflation without any issue. If you find yourself in the second camp, consider looking for opportunities to support your neighbors and community. One great way would be to make donations or contributions to local food pantries. I imagine food pantries will see an increase in demand and being able to support them now would be a huge help and it will make you feel good as well.
- I wanted to elaborate on the idea of taking advantage of free or low cost events around your community. As we get older and reflect back on our lives, it will be the memories made with our family and friends through experiences that we will remember the most…not the “things” we may buy. While it’s disappointing to postpone a trip due to the cost of travel, it does not mean you need to sacrifice making memories. You don’t even need the free events to make memories but some of our favorite memories over the last few summers have been concerts in down Fishers, which have been free or late nights in our backyard playing ghosts in the graveyard. A slowing economy and inflations, while not necessarily the most pleasant experience, does not mean you have to stop living. Keep making memories and don’t let the doom and gloom floating around paralyze you.
Inflation, market corrections, and recessions are normal. They aren’t fun and I don’t WANT them to happen but they are a part of the economic and business cycles. We’ve been here before and we’ll return in the future–and while we’re here in the moment we might need to tighten up our spending, focus more on the expenses that are most in line with our values, and be a little more conservative in managing our finances but that does not mean we cannot continue to enjoy the lives that we have.
Your perception will become your reality. You can focus on the negative (the doom scrolling I mention in the video) and this will seem like the worst of times. Or you can focus on the positive…you might be surprised how much better your reality feels compared to others.
You already know where I’ll be…
Disclaimer: Nothing on this blog should be considered advice, or recommendations. If you have questions pertaining your individual situation you should consult your financial advisor. For all of the disclaimers, please see my disclaimers page.