With The Inflation Rate Over 9 Percent We Can All Benefit From Financial Advice Celebrities Included
In June, the inflation rate spiked 9.1 percent, reaching a new 40-year high. Living in a post-pandemic world among other
In June, the inflation rate spiked 9.1 percent, reaching a new 40-year high. Living in a post-pandemic world among other issues such as the ongoing war in Ukraine, "supply shocks hitting the economy could linger beyond 2024."
No matter what class you're in, the increased cost of living is taking a big hit with most of us having not experienced this before. It requires a shift in behavior and thinking in order to gain better control over spending habits and investment decisions. With that being said, it's important that we get ahead of the curve as best as we can by making proper financial decisions, best suited for our lifestyle.
Make The Money That You Deserve
“Inflation is at a record high making it more difficult to save. But taking small steps can make a big difference. While inflation is a major problem, the upside is – due to the labor shortage – there’s a wide range of job opportunities," stated Gabe Krajicek, Chief Executive Officer at Kasasa.
The easiest answer to dealing with this aggressive increase in inflation is to increase your income. And, you're probably sitting here saying to yourself, "well, yea, duh. But if it was that easy I'd be a millionaire by now." Very true. But what if it was "that easy?"
Surprisingly, this might be the best time to increase your income due to the mass job market. Kristin Myers, Editor-in-Chief at The Balance, said, “Ask for a raise before it’s too late." She backed up her statement by explaining, “One of the best ways to fight inflation is to increase your income, whether that’s through a side hustle or a pay increase at your primary job. Now may be a good time to ask your boss for a raise–unemployment is low, jobs are plentiful, and your employer may be more likely to approve that pay increase. Your window of opportunity may close if we enter a recession and cash-strapped employers stop hiring.”
Even The Rich And Famous Need Financial Advice
Another easy thing to do during this time is show envy towards the rich, celebrities especially, because we assume that they are doing just fine. When in reality we have no idea how they're doing. Although they make more money, they also live a more expensive lifestyle which is only becoming more expensive, just the way ours is.
Financial management is important no matter your status. Stars like Oprah Winfrey, Nicki Minaj and Tiffany Haddish shared advice they received after coming into more money than they've ever seen.
Going back to what we shared about asking for that raise you deserve, Minaj did just that. “At a very early stage in my rap career, I wasn’t making six figures for shows…if I heard there was another rapper making that, I thought, ‘you know what? I get out there and demand or command a crowd…but I also decided, you know what? I want to be compensated well,’” she told Time in an interview. “One thing I learned along the way in business is the necessity for you to be unapologetic about asking for how much money you deserve.”
Oprah on the other hand share the important of keeping yourself in a positive head space to reach the success you hope for. “The greatest discovery of all time is that a person can change his future by merely changing his attitude," shared the network star.
Haddish is a celebrity that has not been shy about where she came from. She's admitted to wearing the same dress twice (for televised events) because in the past she couldn't have imagined owning something so expensive. Amid her rise to fame and success she's consistently been relatable when it comes to financial practices.
In a Cosmopolitan interview the actress emphasized on integrity as a key to building wealth and making proper money decisions. She told the magazine, “I’ve turned down, s**t, I’ve turned down $10 million just to do a post because it didn’t represent my brand. I turned down $10 million because my soul is worth more than that to me. My spirit, my integrity, how I want to be able to look at myself in the mirror every day.”
Deals Are Everywhere
Just like you should ask for that raise, try asking for a discount. The internet has made shopping for deals much easier with sites such as Zulily.
Mathew Jackson, President, Solid Wealth Advisors, and #1 Best Selling Author of The Retirement Dreammaker – Master the Art Of Retirement Abundance, shared ways to save whether it be shopping for necessities or staying in control over your monthly bills.
Jackson recommends, “Use popular apps like GasBuddy and Waze to find the cheapest gas in your area.
Online sites like Raise and Gift Card Granny sell discounted gift cards for grocery stores and gas stations. Also, be sure to check your tire pressure for correct inflation. It may help you save up to $0.15 per mile."
Another strategy, suggested by Tom Diem, CFP®, ChFC® at Diem Wealth Management is that you renegotiate bills for things like insurance, utilities, and subscriptions. He shared, “I just picked up the phone and started calling some of these providers and requested a discount. My first call to my Cable TV company was quickly rewarded with over $20 a month in discounts. I next called my cell provider and had even better results by getting their most up-to-date plan and a nearly $40 monthly reduction.”
And, if your existing providers don't cave, don't give up. Take your business elsewhere. “My big win was not to my existing Auto and Home Insurance agent,” Diem reports, “but to my new agent who replaced my policies with ones with better coverage from a more highly rated company and roughly a $200 monthly premium reduction," stated Diem.