If you check the news even once in the last few months (or basically try to buy anything)You know the United States is currently working on a bit of inflation. Compared to this time last year, Food prices have risen 10.1%.The price of the new car is It increased by 13.7%.The price of the hotel is Airfare rose 37.8%, gas rose 48.7%, and airfare rose 22.2%. Short story: TAlmost all prices have risen significantly.
It’s true that inflation hits everyone, but it doesn’t hit everyone in the same way. For example, if you live in a city, the price of buying a new car or filling a tank is less likely to affect you. Soaring rents have no meaning for people who own land in the American countryside. This means that the headline that inflation has risen 9% year-on-year can have a higher or lower impact on individuals... But how can you be sure? Doug Kinsey of the Artifex Financial Group created what he calls a “personal inflation calculator.”— —a A tool to understand how to reassess your budget in the context of evolving inflation.
What is your personal inflation rate?
Your personal inflation rate is how inflation affected your particular monthly budget.Enter your invoice to find your personal inflation rate Personal inflation calculatorThis will give you an idea of the expected growth rate based on each subscription information. Data obtained from the consumer price index. Kinsey explains, “TThe worksheet I created takes some of the most common categories of household spending and allows you to enter the annual amount for those categories. The inflation factor for each item is then applied to calculate the estimated price for that item or service over the current period. Then add up all these budget items and calculate the individual inflation rate from the difference. ”
This gives you a fine-tuned inflation rate, not your own expense. Comprehensive information provided by the Bureau of Labor Statistics.
Why personal inflation is important
The impact of inflation on the budget depends on the small but significant differences in spending. For example, if you heat your house with gas instead of electricity, your utility bills will be affected differently by inflation. If your commuting budget is allocated to public transport instead of keeping your own car, it will affect your budget in terms of inflation. If your high-The cost budget item (such as housing) is fixed costs, that is, mortgage payments and variable costs, that is, rent payments, and considers how inflation affects financial conditions. By moving line by line in this way, you can get a more accurate picture of how to allocate funds in the future.
You can also understand which subscription information needs to be deferred until a later date if funds are currently unavailable. For example, if you have a budget for your annual vacation, knowing what you need to pay for airfare and accommodation, The trip you are thinking of is actually feasible.
Method Change your budget to reduce your personal inflation
If, After understanding your personal inflation rate You are trying to change your budgetIt’s important Understand the difference between discretionary spending and non-discretionary spending.Non-discretionary spending is an item You really have to pay.This includes your rent Mortgages, insurance, car payments, utilities and more. Optional spending includes optional spending, including: Eating out and traveling..Overall, it’s easier to adjust to a budget that shows changes in discretionary spending, but here are some Tips on how to reduce spending in both categories.
Utility invoice. If you notice your utility The invoice is If you get out of hand, take a look These tips How to keep that cost down. You can save some money this month by simply replacing the air conditioner filter, reducing the amount of soap used, and making sure the refrigerator door is closed properly.
Grocery invoice. The overall cost of food is rising, Some items I saw the price Will decrease last month.. Minced beef, apples and pork chops are just a few of the foods that can give a little relief to your grocery bill. For those looking to eat out A handful A chain restaurant app that offers free products If you are willing to play their game — and Here is a place where you can still get a free children’s meal..
Travel expenses. I want to leave the town this summer,Hurry your travel budget for inflation, you have several options. beginning, You can check out any of these options that are cheaper than Airbnb.. Next, You can fly on airlines that do not charge carry-on baggage..or You can choose a day tRip insteadLook at the best of what your state has to offer.
Invoice for telephone bills. Probably not real how to Live without your phone, But you can make your phone bill cheaper.. You can reduce this fixed cost with simple steps such as registering for automatic payments, getting unlimited data, and choosing a family plan.
Streaming service invoice. If you want to spend less on your streaming subscription, You may be eligible for a free subscription to services you have already paid for.. No. 2, If you have a college student in your family, you can get a big discount.
How to Calculate Your Personal Inflation Rate (and Why You Should)
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