Anyone buying a new car, or even groceries for the family, has noticed that prices are going up. I shared recently about inflation and wanted to bring you a few other bits of advice that I found in this piece:
Last month, inflation accelerated at its fastest pace in about 13 years as the economic recovery gained steam, the Labor Department said. Year over year, prices increased 5.3%.
Meanwhile, median household income fell 2.9% during the pandemic, the first significant decline in nearly a decade, according to new data from the U.S. Census Bureau.
However, there are ways to combat inflation even without a pay increase. Here are a couple places to start:
1) Negotiate lower prices on everyday expenses.
To counteract higher prices, you can negotiate a better deal on almost anything, according to Andres Lares, managing partner at Shapiro Negotiations Institute in Baltimore.
Start by building a rapport, then ask if there are any programs or discounts you qualify for, Lares advised. “There is no harm in asking.”
Streaming services, insurance premiums, cable bills, cell phone plans and gym memberships – especially now – are classic examples of recurring costs that are often negotiable.
Lares said: “If it is a new or used car, can the dealership throw in free oil changes for a year? If it is lodging, can they upgrade you to a better view?”
“Don\’t always just think discount,” Lares added.
Getting more for your money is a good way to add value at the same price.
2) Postpone big-ticket purchases
Not everything will always be more expensive. Some price hikes could be temporary, and, in that case, it may pay to hold out.
“You can defer purchases that are not immediately necessary,” said Neil Gilfedder, a senior vice president of portfolio management at Edelman Financial Engines.
For example, used car and truck prices, which had been a major contributor to inflation gains, are up 31.9% year over year but are starting to retreat, slipping 1.5% in August.
The chip shortage which helped drive up prices is expected to alleviate in the months ahead and cars generally become less expensive toward the end of the year and into January, when dealers look to unload last year\’s models.
Similarly, sky-high demand for home improvements coupled with supply-chain slowdowns caused some building supplies, including lumber, steel, gypsum, and copper, to hit record highs this year.
But remodels may become more affordable soon, too, as demand for raw materials cools in the winter months.
As we navigate the fall and winter season, I want to be your source for important information and advice so that you can make the best decisions.
Please drop me an email or call if you have any questions – or someone you know is in need of expert advice. I love to help those you care about. If you have a referral please click the button down below. Your referrals are the heart and lifeblood of my business.
Mission San Jose Mortgage
2111 W. March Lane, Suite B100
Stockton, CA 95207