Tips to Combat Inflation

Authored By: Tyler Stevenson on 7/10/2023

With inflation soaring and prices for everyday necessities rising, it can be overwhelming keeping your finances in order while making sure you’re putting enough money into your savings. Now is a great time to review your personal financial situation with the tips below.

Track Your Spending

There is no right way for how to track your spending, as long as you are tracking it! Whether that’s through good old-fashioned paper and pencil, using an Excel spreadsheet, or finding the right budgeting app, use whatever process works for you. Start simple and work your way to a more high-tech approach if needed.

With inflation a daily topic of conversation, it’s important to take a look at your budget and review your spending habits. There is nothing wrong with changing course or adjusting your budget to fit your lifestyle or forces beyond your control.

Prioritize Needs vs. Wants

As you make your budget and track your spending, take a look at your purchases and expenses and determine your needs and wants. Some of your needs are obvious, housing/utilities, food, transportation, etc., and while you can’t cut those out of your monthly spending, there may be ways that you can not spend as much on those needs.

Whether that is adjusting your thermostat a few degrees, turning off lights and electronic devices when not in use, buying in bulk or shopping at a discount supermarkets, or carpooling to work and other events, even a few dollars can add up and make its way back into your bank account.

While it is always nice to have our “wants”, it might be time to evaluate them and see whether you really need them or if you can find a cheaper or free alternative. For example, instead of buying a top-of-the-line electronic device or clothing item, ask yourself if you really need it or if there is something more particular and less expensive that can get the job done.

One of the more popular ways to budget your needs and wants is the 50/30/20 budget. In this model, you spend about 50% of your income on needs, 30% on wants and 20% on savings. Keep in mind these are general guidelines, not hard rules, and you can adjust the percentages based on what works for you!

Invest in CDs and other High-Yield Savings Accounts

While you might have money in a traditional savings account, and if you don’t than that’s a good place to start, consider placing some of your extra funds into a certificate of deposit (CD)/share certificate or a Money Market Account where you’ll earn a higher interest rate.

A CD is a great place to invest some extra funds that you don’t need to access for the immediate future, while a Money Market Account also gives you a higher return on your investment while still allowing you to access your funds.

Fort Financial has CD options ranging from 3 months to 60 months, with our 12-month CD currently offering up to 5.00% APY* while our 18, 24 and 30-month CDs are currently offering 4.25% APY*. And the best part of a Fort Financial CD is that it requires just $500 to open, significantly less than other financial institutions.

A Fort Financial Money Market Account can be opened for just $5 while the minimum balance to earn interest is $2,500. The interest rate adjusts as your balance grows, so the more money you have in a Money Market Account, the more interest you can earn. For a limited time you can earn 1.25% APY%** on balances over $100,000 or 1.00% APY** on balances between $50,000 and $99,999.99.

We are here to help! Whether that’s figuring out how to budget or what high-yield savings account is best for you, our friendly and knowledgeable staff are here to help you fortify your life. Visit a branch or give us a call at 260.432.1561 to get started.

You can find additional tips for budgeting, saving and fighting inflation at our Financial Resource Center.

*APY = Annual Percentage Yield. Offer subject to change without notice. $500 minimum opening balance. 5.00% APY is with 0.25% Premier and Access Premier relationship bonus. All other relationship levels earn 4.75% APY. 4.25% APY is with 0.25% Premier and Access Premier relationship bonus. All other relationship levels earn 4.00% APY. Certificates will mature as indicated on the account receipt or renewal notice. Certificates are non-transferable and non-negotiable. Fort Financial may impose a penalty for withdrawal before maturity date. See branch staff for details.

**APY = Annual Percentage Yield. Offer subject to change without notice. $5 minimum opening balance. $2,500 minimum balance to earn interest. Interest rates are tiered based on account balance. Contact us for more details.

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