The economy is on the rebound after a sharp decline induced by the pandemic last year.
But in the midst of the recovery, inflation is also on the rise: in April, it accelerated to a rate not seen in more than 12 years, according to the Bureau of Labor Statistics.
What does this mean to you? The prices of everything from gasoline to groceries have skyrocketed, making it even more important to save on your daily purchases to stretch your pennies.
Here are seven smart ways to control your personal inflation rate.
Control the hidden costs of your home renovations
At the start of the pandemic, with everyone stuck at home and with tons of disposable income that they would typically use for traveling or dining out, home improvement activity increased.
And based on the results of a study by the Farnsworth Group and the Home Improvement Research Institute, that activity has yet to slow down.
However, home renovations can increase the value of your home, which can lead to a more expensive home insurance premium.
If you’ve been going ahead and doing some renovations in the past year and you’re paying for it now, maybe it’s time to shop for a better rate to potentially save hundreds of dollars per month.
Dealing with debt
As credit card balances declined at the start of the pandemic, statistics from the Consumer Financial Protection Bureau show unemployment remains at an all-time high of 14.7% and nearly half of states plan to end benefits federal unemployment plans shortly.
If you’ve been relying on that money to stay on top of your credit cards, you may need another solution.
A low rate debt consolidation loan could help you get rid of your debt sooner and save you a ton of expensive interest.
Stay closer to home – for now
Did you take a trip on the books that was canceled due to the pandemic? Like many Americans who have now received their COVID vaccine, you may be thinking about redeeming your vouchers.
Unfortunately, this is an expense that you may want to book immediately or postpone for a bit. As of April 1, prices for domestic flights have risen 9% and 17% for international travel, according to a report by research firm Bernstein. And prices should continue to rise.
The cost of a hotel stay is also increasing. Between mid-March and the end of April, Koddi, a travel reservation technology company, noted a noticeable increase in the average price of hotels. Compared to a few weeks earlier, they were 11% more expensive, Koddi senior director of customer services Deep Kohli told CNBC.
So maybe you are thinking of booking a road trip? Gas prices are also on the rise.
Think instead of beautify your home or backyard to find your own luxury home getaway.
Don’t let the dealership take you for a ride
Not only is the price of gasoline going up, but so is everything else about your car.
Edmunds car buying experts say the percentage of consumers overpaying for a new car soared to 12.7% in April, setting the highest level since 2002.
And if that wasn’t enough, used car prices rose 10% in a single month, between March and April, according to the Bureau of Labor Statistics.
Overall, prices are up 20% from last year.
If your situation requires you to buy a car, whether new or used, in this hot market, it is essential that you lower your overall auto costs by getting the best possible rate on your insurance policy.
By using free online tools, you can easily compare multiple auto insurance offers – it only takes a few minutes and can save you up to $ 1,100 per year.
Ditch the fees, invest for free
There is no better way to grow your money than by investing it.
But with most platforms, you will face pesky investment fees that drastically reduce your profits – typically anywhere from 1% to 2.5% – which can be a huge change over the years.
If you want to keep more of your hard-earned money, you should consider a commission-free investing app which allows you to invest for free.
Reduce the cost of your mortgage
Mortgage rates have been yo-yo for the past several months as the economy continues to recover from COVID, with January recording all-time low levels after which they have continued to climb.
They are still currently at historically low levels, but experts predict rates will rise to 4% this year – now take the time to step in if you are thinking about refinancing.
It is estimated that 14.1 million Americans have the ability to refi and save an average of $ 287 per month, according to a recent study by mortgage technology and data provider Black Knight.
Take a healthy bite of health premiums
On average, health insurance for a healthy 40-year-old nationwide will cost you $ 5,940 over a year, according to ValuePenguin’s analysis.
With new opportunities to save Thanks to tax credits on your premiums this year, most Americans will see a noticeable drop in their health insurance costs for 2021.
But that doesn’t necessarily mean you’re getting the best possible price on your premiums. The only way to know for sure is to shop and compare offers.