by Kerri Roberts, Branch Manager, Island Savings –
For many individuals and families in B.C., it’s been impossible to ignore the effect of rising inflation on their wallet. Every week at the grocery store, the price of something seems to have gone up. It’s the same at the gas pump, when shopping online or when paying your utility bills.
Let’s cut through the financial jargon and explore a few things you can do to minimize its impact on your day-to-day and long-term finances. Spoiler alert: it may not be all bad news.
Delay Big Purchases
If you can put off making a large, non-essential purchase, consider delaying it until the financial picture looks a bit less murky.
Pay Down Debt
When interest rates are high, try to pay off your highest debt (i.e. credit cards) promptly. In general, aim to pay down as much of your debt as quickly as possible, and avoid taking on new debt if you can. If you are a homeowner, your unique situation may warrant switching from a variable-rate mortgage to a fixed-rate mortgage. A fixed rate is generally higher than a variable rate, but it does provide some certainty for budgeting.
Cut Back on Non-Essential Spending
Try to cut back on all non-essential spending if you are worried about the rising cost of your regular monthly outgoings. Can you make your morning coffee at home? Do you need multiple TV service subscriptions? These can be some simple ways to reduce your budget quickly.
Earn Rewards for Purchases
Make full use of points and other rewards programs to save money on things like groceries and gas. If you need to rely on a credit card, consider a cash-back credit card or one that lets you earn points for things you really need.
Embrace Your Inner DIYer
Fixing things around the house yourself that you would otherwise pay someone to do can help you save some money. You can also make some easy improvements to lower your heating bills, like blocking off drafts. Check out CleanBC Better Homes to see if you qualify for any energy-saving rebates.
During times of uncertainty, it becomes even more important to connect with your advisor to ensure your plan is still up-to-date based on the current market conditions. Working with an advisor also ensures you are receiving advice that is unique to your personal situation.
For more information, email keroberts@islandsavings.ca.
