There’s been much concern in the finance industry over inflation – even the Fed has held off raising rates because of it. So, I thought it would be prudent to talk about some ways to beat inflation and keep a few bucks in your wallet.

Gas

Tip # 1: Conserve Fuel

This one has been repeated many times over, especially with $4 a gallon gas prices. Fortunately, we’re seeing the gas prices fall a little bit, but even still, it’s best to be frugal.

Make sure you’re checking your tire pressure every month. Properly inflated tires can cut mileage per gallon by 5%. It’s not a lot, but every little bit helps, right? Also, slow down! Flooring it doesn’t help you conserve gas, so ease off the gas pedal and save about 30% on fuel by going a slower, steadier speed.

Tip # 2: Maximize Gas Rewards

Credit cards can be your friend. If you pay your balance in full every month, get yourself a card that offers cash back on gas purchases. You’ll save yourself a little money in the long run and since you have to fill up anyway, why not? But, if you don’t pay off the card every month, then don’t bother. Rewards cards come with a higher APR, so it doesn’t do you any good to carry a balance. If you do think you’ll be able to pay the card off every month, we recommend the BP Visa Card.

Tip # 3: Dump the Gas Guzzler

If you’re one of those with a Hummer, you probably rue the day you thought to buy the stupid thing. It may be a good time to get out of the SUV and into a hybrid. In terms of gas mileage alone, it’s a save. But, also consider the good it does the environment to lay off the exhaust heavy vehicles.

Food

Tip # 4: Grocery Shopping

Groceries stores are specifically designed to make you spend more money. Everything is placed so that you have to walk all the way across the store for the things that you’ll need, passing things you don’t, but triggering an impulse to buy them. To overcome this, walk into the store with a list and a firm goal of not straying.

Don’t go grocery shopping when you’re hungry or tired as you’re more susceptible to giving in to that impulse. And pay attention to the sales. If there’s an especially good sale, buy in bulk. Most things can be frozen for later use.

Tip # 5: Cook at Home

How many times have we talked about this? It’s one of the easiest ways to save money. I know that we all have busy lives and sometimes it’s just easier to pick up something to-go. But, with a little preparation, you can get everything you need for a week’s worth of meals when you go to the grocery store AND there are quick and easy recipe ideas that take about as much time to cook as it does to grab something to-go.

Home Energy

Tip # 6: Seal the House

Many people’s high electricity bills could be because of the inefficiencies of the home. The best place to start is to do a home-energy audit following the instructions from Energystar.gov. Technically, you could hire a professional to do this, but it costs upwards of $200 and I’m trying to help you save money. But, if you’re uncomfortable doing it yourself, then consider hiring someone.

You can save around 25% or more of your monthly electric bills just by making sure you’re not wasting the A/C on the outdoors. Same holds true in the winter with your heater.

Tip # 7: Thermostats

Spend the $60 for a programmable thermostat. You’ll see the difference within the first few months of your electric bills. Plus, you don’t have to stress out if you forget to lower the thermostat before work, it’s all done for you.

Tip # 8: Energy Stealing Appliances

You may not realize just how much appliances left plugged in – even if they’re not on – consume electricity. The best solution is to unplug them, but who has the time to go around doing that? Instead, get power strips. You can plug several appliances in and then turn them off all at once, cutting the flow of electricity they normally take. Some power strips even have timers and others turn off automatically after a period of non-use, though these are pricier than plain power strips.

Miscellaneous

Tip # 9: Ask for Lower Rates

If you have credit card debt, it will be attributing to the tightened budget. There’s no harm in calling and asking for a lower rate. The worst that can happen is that they say no. The best is that they actually say yes and you get to save some money. It’s recommended that you wait six months from your last request before asking again. This gives them enough time to see a pattern and make a decision based on that pattern.

Tip # 10: Cut the Excess

If you’re not using all of your cell phone minutes, switch plans. If you’re not reading that weekly newspaper or the monthly magazines, cut the subscriptions. If those Netflix or Blockbuster rentals sit there, unopened, then cancel the membership. There are always small little areas where you can trim and save the money.

And there you have it. While inflation is never going to go away, we can get around it. A solid, well-balanced budget is a start, and being mindful of wasteful activities will help put more money in your pocket.

What other tips do you guys have for beating inflation?

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