Tariffs and Inflation Stressing You Out? Fight Back!

I recently taught a new class titled Inflation-Fighting Strategies For Older Adults. Little did I know when I submitted a course proposal for the class in July 2024 that the U.S inflation rate would continue to remain “sticky” and that the country would be embroiled in tariff war that is estimated to be like an average tax increase of more than $1,900 per American household in 2025. What to do?

Consider these inflation-fighting strategies:

 

Groceries- Use store brands, eat more meatless meals, stock up on sale items, eliminate high-cost, high-calorie “junk” foods, use coupons and double coupons, join supermarket rewards clubs, buy local seasonal produce, build “impulse buys” into your shopping list so you stay within budget, use grocery shopping apps, and make recipe substitutions (e.g., applesauce instead of eggs for baking).

 

Eating Out- Drink water instead of a soft drink or alcohol, share an entrée or dessert, eat appetizers as a meal, select BYOB restaurants for meals with adult beverages, take advantage of value meals and “early bird specials,” join restaurant rewards clubs, and bring take-out containers for leftovers.

 

Gasoline- Drive less by consolidating trips, use apps like GasBuddy and Waze to find cheap gas, pay with cash if gas is cheaper, join a fuel rewards program, check tire pressure and lighten loads, and carpool with others to reduce miles driven.

 

Road Trips and Vacations- Pack food and beverages in a cooler, stay at hotels with free breakfast, get hotel coupons at rest stops, travel with a group and share expenses (e.g., a beach house), travel on planes and trains at “off peak” times, join hotel and airline rewards programs, and take daycations (one-day trips) and staycations (a vacation spent in your local area instead of traveling somewhere).

 

Utilities- Adjust your thermostat to be a little warmer in summer and  cooler in winter, turn down the water heater, unplug items not in use, take advantage of off-peak hour electric rates, change HVAC system air filters regularly, wash most laundry in warm water, and empty drier lint traps.

 

Clothing- Shop department store sales and use coupons, join retailer loyalty programs to earn rewards, shop at thrift and consignment stores, shop for deals online, and make clothing repairs and alterations to extend the life of your wardrobe.

 

“Big Ticket” Items- Decide whether you can wait out inflation and “tariff turmoil” for items like cars, electronics, furniture, and houses. If not, use the Rule of Three worksheet to compare three alternative vendors for products and lenders for loans. Be sure to ask about discounts (e.g., Veterans).

 

Insurance- Play “what if” (i.e., I increased deductible, changed the policy amount, etc.) with you insurance agent, double-check policy discounts that you qualify for, shop around for coverage (using the Rule of Three), and sign up for auto-pay or online billing statements.

This post provides general personal finance or consumer decision-making information and does not address all the variables that apply to an individual’s unique situation. It does not endorse specific products or services and should not be construed as legal or financial advice. If professional assistance is required, the services of a competent professional should be sought.

 

Practical Inflation-Fighting Strategies

Earlier this year, I taught a class and a webinar about inflation where I presented dozens of ways to mitigate the effects of rising prices through reduced spending. Inflation is down significantly from 2022 but still remains elevated. Below is a list of inflation-fighting strategies to consider listed by household expense category:

 

Groceries

 

Make substitutions (e.g., applesauce for eggs in baking), buy store vs. national brands, eat more meatless meals, stock up on sale items, consider shopping at a warehouse store, eliminate high cost “junk foods,” use coupons (from online sources and newspaper ads) and double coupons.

Eating Out

Drink ice water vs. soft drinks or alcoholic beverages, share an entrée or dessert, eat appetizers as a meal, select BYOB restaurants for meals eaten with alcoholic drinks, eat out for lunch vs. dinner or “early bird specials,” and use takeout containers to bring food home for another meal.

Gasoline

Drive less by consolidating trips for errands, appointments, and work, find cheap gas with apps (e.g., GasBuddy, Waze), pay for gas with cash, join a retailer’s fuel rewards program, time your fill-ups (experts say Sunday and Monday are best), and check tire pressure and lighten loads.

Utilities

Adjust thermostat (a little warmer in summer and cooler in winter), turn down water heater to 120 degrees, unplug items not in use using a power strip, take advantage of off-peak rates, change HVAC system air filters regularly, use LED light bulbs, and use low-flow showerheads.

Clothing

Shop department store sales and use coupons, join retailer loyalty programs to earn rewards, shop at thrift and consignment stores, shop for deals online (e.g., Asos, Mango, Amazon, Zara), and make clothing repairs and alterations to extend the life of garments.

Big Ticket Items

Wait inflation out, if you can, until product inventory increases and/or interest rates and prices come down (e.g., houses, cars, computers), compare at least three product or service providers, negotiate prices with vendors, if possible, and shop around for the lowest interest rate on loans.

Insurance

Play “what if?” (e.g., I increase deductible, I change coverage) with an insurance agent, double check policy discounts you qualify for, compare at least three insurance vendors, sign up for auto-pay or online billing statements, make fewer payments per year, and maintain good credit.

In summary there are many ways to “claw back” the spending power that inflation has taken away. Try different strategies and stick with those that work for you.

This post provides general personal finance or consumer decision-making information and does not address all the variables that apply to an individual’s unique situation. It does not endorse specific products or services and should not be construed as legal or financial advice. If professional assistance is required, the services of a competent professional should be sought.

 

Money-Saving Tips for Financially Challenging Times

With increasing costs for so many basic necessities, 2022 has been a tough year financially. Many families are trying to “claw back” (a.k.a., recover) the purchasing power that inflation has taken away through a financial “triaging” strategy of increased income, reduced spending, and/or changes in shopping habits and product and service purchases.

Looking for ways to improve your cash flow to counterbalance the higher costs associated with inflation? Consider the following ideas for nine spending categories from The Smart Senior’s Financial Answer Book and other sources:

 

Prescription Drug Discount Cards- Recent research studies found that the cost of medications has risen faster than the rate of inflation and that 1 in 4 adults find it difficult to pay for their medication. As a result, some cut their pills in half or skip doses. Prescription drug discount cards can often help to reduce drug costs and are available at no cost online via websites or apps. Examples include SingleCare, GoodRx, ScriptSave, WellRx, and Blink Health.

 

Energy Bills- Saving electricity can help reduce utility bills. Three commonly recommended practices to reduce electricity use are: 1. replace traditional incandescent light bulbs with LED bulbs that use less energy and last longer, 2. turn off lights when a room is unoccupied, and 3. unplug electronics, individually or by using a power strip, when they are not in use. Estimated cost savings for the latter is $100 to $200 per year.

 

Appliance Use- Experts recommend buying money-saving Energy Star appliances. This is especially important for devices that are used continually, such as a water heater. Other suggestions include lowering water heater temperature from 130 degrees to 120 degrees, washing lightly soiled clothing in cold water, cleaning the lint trap of clothes dryers after each use, and only running full loads in a clothes washer or dishwashing machine.

 

Heating and Cooling- Recommended practices to save money include using ceiling fans as a substitute for (or compliment to) air conditioning, turning the thermostat down (winter) or up (summer) when away from home or asleep (this could total as much as much as 15 hours per day!), and using shades, blinds, or drapes to protect against heat and cold. The objective is to reduce the temperature difference between inside and outside air to reduce energy consumption.

 

Communications Services- Many people are reviewing their phone/television/internet provider “bundles,” dropping services they rarely use, and sometimes replacing current providers with other available options. Experts recommend asking current providers for special deals and “loyalty rewards” and ways to lower fees, comparing alternative service providers, and considering streaming services in lieu of cable or satellite dishes if there is appreciable savings.

 

Grocery Shopping- Money-saving tips that can add up to significant savings, especially if combined, include: buying store brands instead of national brands (if cheaper), cutting out expensive snacks and beverages (a.k.a., “junk food”), shopping with a smaller cart (if possible) or even a basket, using coupons (or double coupons) on needed grocery items, combining a manufacturer’s coupon with a store coupon or price break, earning free food or cash back by using a supermarket rewards/loyalty card, and reducing food waste at home by managing refrigerated leftovers.

 

Eating Out- Strategies to reduce costs at restaurants include drinking complimentary water instead of soda or other beverages, ordering an appetizer as a meal, and splitting an entrée, dessert, and/or appetizer with others. If individual portion sizes are large, take some food home for another meal. Also search for restaurant coupons online or at highway rest stops and earn free meals by joining a restaurant rewards/loyalty program.

 

Gasoline and Car Expenses- Some common recommendations to spend less money on gas include performing regular maintenance checks, keeping tires properly inflated, not hauling around a lot of unnecessary “junk” inside a car, and comparing at least three insurance companies for the best price (with available discounts) on auto and property coverage. Experts also note that the word “recommended” is different than “required” when it comes to the use of premium fuel. In addition, use an app like Waze or GasBuddy when traveling to find the cheapest source of gas when you need it.

 

Other Spending- Shop second-hand clothing sources such as thrift shops, consignment stores, and a wide variety of online clothing resellers. At department or discount stores, get rewarded for clothing and many other purchases with a shopping rewards app, points, cash-back certificates, or other loyalty discount. For entertainment expenses, look for lower-cost ticket options or, better still, free events sponsored by local governments, non-profits, or businesses.

 

Think of the above list as a menu in a New Jersey dinner. The “menu” of money-saving ideas is long and you cannot possible “consume” everything. Pick the ideas that best fit your spending patterns and lifestyle.

This post provides general personal finance or consumer decision-making information and does not address all the variables that apply to an individual’s unique situation. It does not endorse specific products or services and should not be construed as legal or financial advice. If professional assistance is required, the services of a competent professional should be sought.