Welcome to NerdWallet’s Smart Money podcast, where we answer your real-world money questions.
In this week’s episode, we’re sharing NerdWallet’s recent webinar, which was about inflation.
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Our take on inflation
During NerdWallet’s inaugural NerdTalk webinar, a panel of Nerds explained how inflation works, its impact on household finances and strategies for protecting and growing your money.
Inflation affects the prices of goods and services, which decreases our purchasing power. The current inflationary period has been especially severe as essentials like food and gas have increased at their highest rates since the early 1980s. The Federal Reserve is fighting inflation with periodic rate hikes to make borrowing money more expensive in the hope of slowing consumer spending. While we wait for inflation to subside, follow some of the Nerds’ tips for maximizing the value of your dollar.
If you’re looking to spend less, you could cut unnecessary expenses from your budget or switch to cheaper products or services such as a different cell phone provider. Apps like Flipp and GasBuddy can help you find the lowest prices on food and gas, respectively.
As credit card interest rates rise in response to the Fed’s rate hikes, you may feel a sense of urgency to pay off credit card debt. To do so, choose a debt payoff strategy that suits your financial situation and personal preferences. Consider a 0% annual percentage rate balance transfer credit card if you want to consolidate balances from multiple credit cards and get a reprieve from interest.
You can also combat inflation by increasing your income. You might negotiate a raise, move to a higher-paying job, take on a side hustle or park your savings in a high-yield savings account.
If these strategies are not enough to keep you financially secure, access resources like 211.org for food, housing and health assistance or the National Foundation for Credit Counseling for help managing debt.
Have a money question? Text or call us at 901-730-6373. Or you can email us at podcast@nerdwallet.com. To hear previous episodes, go to the podcast homepage.
The article Smart Money: How to Leverage Inflation for Your Benefit originally appeared on NerdWallet.