Inflation may continue to show signs of slowing, however businesses nationwide pare still grappling with increasing expenses, passing costs onto consumers, while over half (68%) have raised prices on select or all products and services, according to JPMorgan Chase’s 2023 annual Business Leaders Outlook. Nearly all small business leaders (94%) say inflation has impacted expenses, with almost four in 10 noting that expenses have increased by more than 10% in the last 12 months.
While you may already be cutting back on spending due to rising costs and an uncertain economic environment, it’s important to evaluate your financial situation and consider implementing these lifestyle changes to help reduce inflation-related stress.
1. Save for an emergency fund.
Getting in a habit of saving is key, and how much you should save for an emergency fund will depend on your income and spending habits. Setting aside cash – ideally between three and six months of living expenses – will help prepare you for unexpected expenses. Consider anticipated expenses like rent, utilities, debts and food. Having an emergency fund will help ease stressful situations that can arise without warning.
2. Spend with intention.
Instability in the market can make your finances feel equally unstable, so it’s important to set a budget and identify where your money is going each month. Financial tracking tools like a monthly budget worksheet or digital tools like Budget, in the Chase Mobile® app, will help track your spending, allowing you to review and adjust your budget as needed. You also can set alerts to determine how you’re doing throughout the month. Having a deeper level of insight will also show you where to consider cutting unnecessary expenses or allocate additional funds.
3. Search for investments with better returns.
The uncertain global economy has created pronounced peaks and valleys in the market over the last year. Now is a good time to reevaluate your asset mix and search for options that can protect your wealth from inflation. Consider consulting a financial advisor to create a personalized financial strategy that may include investments in things like savings bonds and commodities.
4. Take advantage of credit card rewards.
Many credit cards offer new cardmember bonuses, cash back and rewards that can help you earn more for spending on everyday items like groceries and travel. Look for credit cards that essentially pay you back by earning more when you spend on eligible categories, including gas, groceries and utilities.
Visit chase.com/personal/financial-goals to learn more about how JPMorgan Chase can help you combat inflation-related stress.