More Inflation Fighters

Saving a dollar here and there is great. But you may need inflation fighters that give bigger, quicker results. We’ve got a bunch of them for you today on MoneyWise. We should always be looking for ways to save money and be faithful stewards of what God has given us, but it’s especially important with prices on the rise. Proverbs is often our go-to book for wisdom on saving. Proverbs 21:20 reads, Precious treasure and oil are in a wise man's dwelling, but a foolish man devours it. And Proverbs 10:4 tells us, A slack hand causes poverty, but the hand of the diligent makes rich. MONEY-SAVING TIPS 1. AVOID DEBT. And if you’re in debt, get out of it as quickly as you can. Stop using credit cards unless you pay off the balance each month. Pay down what you owe. Use the snowball method that we’ve talked so much about before. Start with the smallest debt. When that’s paid off, move on to the next, and so on. If you’re paying thousands of dollars a year in interest on credit cards, imagine how that could beef up your emergency fund or earn in a retirement account! 2. AUTOMATE YOUR SAVINGS. Automate your savings. Have part of every paycheck transferred automatically into savings. Do that first to build up your emergency fund, then when that’s fully funded with 3 to 6 months’ living expenses, start putting that money into a qualified retirement plan like a 401k or IRA. If you rely on yourself to do it manually, it probably won’t happen. 3. SAVE MONEY FROM TAX REFUNDS OR PAY RAISES. Try to bank at least half of your raises and all of your tax refund. However, you really shouldn’t be getting much of a refund at all. That’s just giving Uncle Sam interest-free use of your money. So adjust your withholdings to get as close to zero as possible. 4. STAY HEALTHY. Eat a well-balanced diet, exercise, and get plenty of sleep. Watch your weight. Why? Because healthcare is expensive. No matter what kind of plan you have, the less health care you use, the less you’ll pay in deductibles and the more you save. Studies show that if you’re overweight and out of shape, on average you’ll spend more on health care in your later years. 5. TAKE A SIDE JOB. Take a side job or put in extra hours at work. Or think outside the box. Maybe you can drive for Uber or Lyft, or rent out a room through Airbnb. If you work just 10 hours a week at $12 an hour, it adds up to more than $6,000 a year, more than wiping out the effects of inflation. 7. CALL YOUR CREDITORS. Is your time worth a hundred, or maybe two hundred dollars an hour? Unless you’re a brain surgeon, probably not. But that’s what you can save by spending an hour or two on the phone every year with each of your monthly creditors. These include: home, auto, health insurance companies, your smartphone carrier, Internet, cable providers, and credit card companies. Go over your plans with a customer service rep to make sure you’re paying as little as possible for the product or service you need. Do this especially if you have automatic renewal. They may have added items you don’t want or need. 8. GET OUT OF DEBT. This last money-saving idea is for those who haven’t completed the first one yet get out of debt! It’s a little more difficult in times of rising interest rates, but an annual call to your credit card issuer to ask for a lower rate could result in saving hundreds of dollars a year. On today’s program, Rob also answers listener questions: ● When does it make sense to use investment funds to pay off debt? ● What is the best way to start investing for kids and college? ● How much information should someone have to provide to get a line of credit? RESOURCES MENTIONED: ● Bankrate.com Remember, you can call in to ask your questions most days at (800) 525-7000 or email them to [email protected]. Also, visit our website at MoneyWise.org where you can connect with a MoneyWise Coach, join the MoneyWise Community, and even download the free MoneyWise app. To support this ministry financially, visit: https://www.oneplace.com/donate/1085/29