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How To Save Money During Inflation?

Michelle Salater
February 17, 2023
how to save money during inflation

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The question of how to save money during inflation is on everyone’s mind.

Gas prices are soaring, and grocery bills are climbing.

Families are feeling the pinch of inflation as rates are currently at a 40-year high. 

During times of inflation, things cost more, and our money seems less valuable.

As much as we would like to keep living as if our bank accounts will remain the same, that simply isn’t true.

We can’t just ride this wave. Knowing how to save money during inflation will make all the difference. Keep reading for 15 ways to combat inflation. 

15 Ways To Save Money During Inflation

The good news is there are many easy ways to combat inflation. Some require you to make some lifestyle changes, and others require you to change your way of thinking.

But they are all possible and effective!

Use these tips for how to save money during inflation to keep your bank account and investments safe.

1. Figure Out Current Spending

Knowing how to save money during inflation starts with knowing what you are spending currently.

Here’s what I mean:

When I first started driving, $20 would get a full tank of gas.

When I created a budget for myself, I budgeted $20 every week for gas.

But times have changed, and $20 won’t get me very much gas these days.

As a result, I had to adjust my gas budget.

We all have experienced the same at the gas station and the grocery store.

Therefore, the very first thing you need to do is take a good hard look at what you are currently spending due to inflation. 

What costs have risen? Which areas of your budget require more money now?

2. Revise Your Budget

Now that you have an idea of what you are spending due to inflation, it’s time to create a revised budget.

Make sure you prioritize budgeting your main expenses first, such as housing, utilities, and food.

Need to revise your budget? Take advantage of PocketSmith.

PocketSmith is budgeting and personal finance software (that doesn’t actually require software installation).

Check out what you can do with PocketSmith’s budgeting feature:

  1. Create new budgets.
  2. Make changes to existing budgets.
  3. Compare your overall earning and spending using the budget summary.
  4. View the current budget for a category.
  5. View the total budget for a category based on specific dates.

Best Budgeting Apps For Easy Money Management

3. Cut Costs

If you are wondering how to save during inflation, the best thing to do is cut costs.  

It’s likely that after you revise your budget, you’ll discover you don’t have as much money left. Your revised budget should help you identify areas where you need to cut back

  • Do you really need 3 streaming services? 
  • Do you use your gym membership? 
  • Do you really need to eat out that much?

Take a good, hard look at your current spending and ask yourself if it’s necessary or not. 

An easy way to cut back on your spending is to let BillCutterz save you money on your monthly bills. They analyze your bills for potential savings and negotiate lower rates with your current providers, and those discounts and savings appear on your regular bills. Using BillCutterz will put money right back in your pocket.

BillCutterz can save you money on your cable/satellite TV bill, internet bill, cell phone bill, home security system, and many more. So just sit back and let BillCutterz call your service providers on your behalf while you enjoy your savings. Your plan won’t change, only the price you pay.

See how much you can save money on monthly bills with BillCutterz expert bill negotiation.

4. Drive Less

It’s no secret that gas prices are through the roof. Whenever possible, drive less! Walk or bike to get around. Carpool to and from work.

5. Lower Your Food Bill

Like gas, grocery bills are also significantly higher. That means prices are even higher in restaurants.

Chron reports, “In the restaurant industry, on the other hand, food is generally marked up about 60 percent, and some beverages may be marked up as much as 500 percent.”

Instead of spending money in restaurants, cook at home and pack lunches for work.

When it comes to saving money for the food you will cook and eat at home, look for cheaper, healthy options. Foods like rice and beans go a long way. Switch to the generic brand instead of the name brand.

6. Invest Wisely

If you have extra money in savings that you don’t need to spend any time soon, it is wise to consider investing it.

Many experts agree it is wise to invest in the stock market during times of high inflation.

Investopedia explains, “Some of the best stocks to own during inflation would be in companies that can increase their prices naturally during inflationary periods. Commodity resource companies are one example. Products like oil, grains, and metals enjoy pricing power during periods of inflation. The prices of these items tend to go up as opposed to, for example, the price of a computer, which is subject to manufacturer and distributor price adjustments.”

Don’t be intimidated if you are new to investing. Investing is for everyone!

Beginners should check out Stash*, a personal finance app designed to help anyone improve their financial life. 

See how Stash makes it possible for you to invest your way.

7. Consolidate Debt

Paying down debt may not seem like a priority during times of high inflation, but it should be.

Knowing how to save money during inflation requires understanding how to save in every area of your finances. For example, if you are carrying multiple credit card debts, it is wise to consider consolidating debt using a balance transfer credit card.

This will save you money by doing away with some of the interest charges. In turn, it will make it easier to pay off debt, freeing up more money to afford pricey groceries and gas.

Interested in seeing your debt cut in half? Check out Accredited Debt Relief – debt consolidation made easy!

8. Stop Browsing

One of the ways to combat inflation is to recognize your own bad spending habits.

For example, do you tend to always purchase something when you go to a store? Do you have a lot of impulse buys sitting around your house?

If you find this to be true, stop browsing and start shopping with intention. Only go shopping when you have a list – and only purchase items that are on the list.

9. Shop Online with Purpose

Use online shopping to your advantage. If, as mentioned in the previous tip, you know you can’t go to Target without leaving with a bunch of items you don’t really need, shop Target online.

With Buy Online options available at most stores, it is possible to get everything off your list without ever entering a store. Additionally, shopping online allows you to do price comparisons quickly and easily.

10. Practice Meal Planning

How to save money during inflation? Pay attention to your food costs.

One way to cut food costs is to plan out meals for the week. If you don’t have a plan for dinner, it is easier to get fast food or head to a restaurant. If you don’t have groceries in the refrigerator for lunch, you’ll eat out.

Instead, make a meal plan for your family – and stick to it!

11. Borrow Instead of Buying

One of the easiest ways to combat inflation is to stop buying. But there are things that you need. And there are going to be some things that you want.

Instead of buying these things, borrow them.

Head to your local library to borrow items. Today’s libraries offer far more than books, such as seed exchanges and technology rentals.

Look into the Buy Nothing Project, a gift economy platform, which encourages users to give things away and ask for things they need.

12. Visit Warehouse Clubs and Discount Stores

During times of high inflation, warehouse clubs (like Sam’s Club and Costco) can provide big cost savings.

In addition, discount grocery stores, such as Aldi and Lidl, will help you stretch your grocery budget.

13. Put Needs Over Wants

Understanding how to save money during inflation also includes recognizing you may need to change your lifestyle.

When costs are high, it’s important to put needs over wants. Wants must be put on the back burner until the money is saved to afford them.

Whenever you shop, ask yourself, “Is this a want or a need?” If it isn’t a need, hit pause.

14. Use Cashback Apps

When you shop for your needs, use Ibotta so you can cashback. Ibotta gives you cashback on grocery store purchases by paying through the app, using the browser extension, or submitting a receipt. 

Ibotta allows you to shop for your needs at several popular retailers to earn free money and receive cashback offers for certain products.

Shop from over 15,000 online merchants like Macy's, Sephora, Gamestop and more.

15. Don’t Run Appliances Unless You Must

One way to combat inflation and save money is to only run your appliances when necessary. For example, don’t run the dishwasher until it is full. Don’t run the washing machine unless you have a full load.

Little savings add up. 

Here at Penny Calling Penny, our money saving articles are only a part of our growing library. We’re dedicated to helping you learn to manage your money, no matter where you’re at on your financial journey. Subscribe to our newsletter so you never miss a Penny, and we’ll see you next time!

Michelle Salater
Michelle Salater is a freelance financial copywriter with over a decade of experience writing for companies in B2B and B2C. Her passion for personal finance education came from realizing her own toxic relationship to money, healing it, and turning her financial situation around in just 16 months. Michelle is a co-founder of Stop Being Sold®, a community created to transform the way consumers buy financial products. When she’s not in front of her computer, she’s reading biographies and exploring remote areas of Mexico.

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