Inflation. The rate of increase in prices over a given period of time. We’ve all dealt with it throughout our lives, but over the last few years the increase has been drastic. The high cost of goods we are all experiencing is now the number one stressor for adults across the country. It’s true that inflation has slowed since its peak, but that simply means that prices aren’t rising as quickly as before. The chance that we see prices come down is very unlikely. While it’s not what we want to hear, it’s the reality we all must face. Long gone are the days of stopping by Eileen’s Store in Breese and getting a bag full of candy for a quarter. And while we can all point a finger at what we think is to blame for the sharp rise in costs from supply and demand to fiscal policy to corporate greed the fact is, pointing blame won’t help you take back control of your finances.

So here are a few practical ways to help survive the current high cost of living, ensuring that your financial well-being and sanity remain intact.

CREATE A BUDGET

If you’re anything like me, going home after work and discussing finances with your spouse is not high on your list of enjoyable activities. However, this is a crucial step in taking control of your finances. Track your expenses meticulously and categorize them. Prioritize essential expenses like housing, utilities, and groceries while evaluating your non-essential spending.

ELIMINATE DISCRETIONARY SPENDING

Now that you’ve categorized your monthly spending, you can make the tough decision about what to eliminate. Do you really need 5 different streaming services? Probably not. And chances are you will be able to find numerous little expenses that you can cut from your monthly budget. As Benjamin Franklin said, “Beware of little expenses. A small leak will sink a great ship.”

BEWARE OF LIFESTYLE CREEP

As your income grows, it’s common to increase your spending. However, it is crucial to avoid this during high inflationary times. Instead of immediately upgrading your lifestyle, focus those additional funds on building your savings or paying down debt.

REDUCE YOUR DEBT

With high inflation, many people see their credit card balances soar as well. Eliminating your monthly debt obligations will leave you with more money to put towards savings or help pay for those essential items in your budget. Make extra payments on credit card debt by using the money saved from cutting the non-essential items out of your budget.

Remember, the key is to take the initiative to lower your spending habits and remain proactive. Have those difficult conversations with yourself or your spouse about cutting back in certain areas. Allocate leftover funds towards paying down debt or building your savings. Lastly, don’t worry about keeping up with the Joneses. Chances are, they’re feeling the pinch as well.

Germantown Trust and Savings Bank (GTSB) has served Clinton County for 18 years with current locations in Breese, Germantown, Beckemeyer, and Bartelso open Mon-Fri, Bam-5pm and Saturdays, Bam-noon. They also maintain stand alone ATMs in Breese and Albers. GTSB remains dedicated to providing complete banking and trust services to the community. To speak with a representative from GTSB, please call (618) 526-4202

* This is reprinted from the “Neighbor of Clinton County Magazine”, October 2024, Page 25