How to prevent inflation from putting pressure on your wallet

Although inflation affects the majority of Americans, one personal finance expert says there is no reason to panic.

“You have to remember that fear can’t be your financial advisor,” said Rachel Cruz, writer and host of the best-selling podcast on FOX Business’ Morning with Maria on Tuesday. “When we hear words like inflation and recession and all of that, fear can rise and you can make really bad decisions when fear takes hold.”

Her comments come on the heels of a recent poll that showed 80% of Americans reported that inflation affects their daily lives.

Cruz then shared tips and tricks to prevent price hikes from putting pressure on your wallet.

How to manage a “tireless” budget amid bloated records

Recognizing the inflationary pressures that can be felt every day, the host of “The Rachel Cruze Show” encouraged consumers to focus on changing the financial habits within their control and improving their budget.

“That’s right, so it’s key to people,” Cruz explained. “If you’re not intentional where your paycheck is going, you’re going to spend money you don’t tend to spend.” “And now, accounting for every dollar your life needs is really critical.”

While breaking down how to budget, Cruz explained that your income minus total expenses must equal zero and every dollar must be accounted for.

“You’re going to put that income on top of an Excel sheet, a sheet, a budgeting app, it doesn’t matter, and then you’re going to look at all your expenses and you’re going to be really intentional to say, ‘Okay, housing first, food second, utilities third, transportation in Fourth place,” Cruz advised.

“You really look at your needs versus your needs, and put the dollar amounts next to all the categories you spend money on,” she continued. “So every dollar has a mission, every dollar is spent on purpose.”

On declining consumer confidence combined with Americans’ savings rate, Cruz noted the importance of replacing the money taken from your savings.

She noted, “Money flows in two ways – it flows in and it flows out. And so, if you’re taking money out of your savings, fortunately you have the money, but you want to replace that as soon as possible as well.” Outside.

As prices for gas, groceries and other daily expenses continue to rise, Cruz said a good goal also includes increasing income.

“Whether it’s getting a raise at your current job, getting one or two after-work jobs, and I know that’s not ideal for people,” Cruz said, “but at this point you might have to increase your income just to be able to say, ‘Hey, I’ve I covered my expenses and I don’t have to live off my savings.”

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