As inflation rises, the cost of living also rises. Prices are indeed increasing daily. Even if you don’t change a thing about your spending, the cost of maintaining the lifestyle you’re accustomed to will keep spiking. Take advantage of some easy strategies to stretch and conserve your income in your daily life to resist inflation.
What Is the Current Rate of Inflation in Canada?
The Consumer Price Index is the primary tool that economists use to calculate inflation, which is defined as the rate at which the prices of goods and services are increasing. Fluctuations in manufacturing costs and demand for various goods and services are two factors that might affect inflation.
According to Statistics Canada, the annual inflation rate was 6.8 percent in April 2022. Meanwhile, the year-over-year increase in the average hourly salary was only 3.3 percent higher. This is the greatest amount of inflation that Canada has seen since 1991, and April represents the 13th successive month that inflation has surpassed the target range that the Bank of Canada has set for itself, which is between 1% and 3%.
Ways to Stretch Your Income During High Inflation
Many people in Canada may experience increased financial strain as a result of high inflation. It’s important to stretch your income so that it keeps pace with rising costs. Here are some of the ways to do that.
Cut the Interest Rate and the Overall Cost of Your Debt
If you are just making the minimum payment required each month, high-interest debt from personal loans and credit cards can be a significant drain on your account balance.
If you want to cut down on the interest rate you are paying on that debt, you might want to look into getting a consolidated loan. You may be able to consolidate your outstanding balances, whether they are on loans or credit cards, into a single monthly payment at a reduced interest rate.
Consolidating your loans might save you thousands, giving you peace of mind to make one monthly payment.
Hunt Down Long-lost Money
There are times when money is discovered in places you least expected. Each year, a significant amount of money is lost without being claimed. There are a few important locations to search for money that is sitting around waiting for you to claim it. The CRA should be contacted first for verification purposes. It is possible to overpay taxes inadvertently and for refunds to go unclaimed. If one of those two situations applies to you, the Canada Revenue Agency (CRA) might be owing you money.
The other place you should search is for unclaimed bank balances. Are there any federally controlled bank accounts that you or a member of your family have not yet closed?
Get in touch with the financial institution where you started the account if the inactive account has been dormant for less than ten years. Unclaimed amounts are sent to the Bank of Canada after 10 years, and the bank keeps them there for thirty years. To claim it, all that is required is to fill out a claim request form online.
Make a New Assessment of Your Spending Habits.
Take a minute to reevaluate your cash flow and where it is going if you are finding it harder to stick to your spending plan due to the effects of inflation.
To begin, evaluate whether any aspects of your life can be put on hold for the time being to guarantee that your basic needs, such as a roof over your head, food on the table, reliable transportation, and functioning utilities, are met. This evaluation may lead many individuals to put off non-essential expenditures such as going out to eat, paying for subscription services, or maintaining a gym membership.
Look Around for the Best Deals
The moment has come to take your ability to be a bargain hunter more seriously. This does not imply that you have to become an extreme couponer; rather, it suggests that you pay closer attention to sales and allow them to direct both when and where you buy the items you need.
Making use of policies that offer price matching is another smart technique to cut costs. It is possible that you may be able to acquire an item at a substantial discount, or that you will be compensated if an item you have already purchased goes on sale in the future.
You Can Use Your Reward Points
Now is the time to start cashing in on all of those reward points you’ve accumulated from using your credit card points or from participating in other types of customer loyalty programs. Because of rising inflation, the value of your points will fall over time, resulting in a lower opportunity to buy things. You will get great value out of your rewards points if you redeem them for products that you desire.
However, before you go ahead and redeem your points, you should first do some research and compare prices. It is possible that what you are buying is not worth giving up all of those points for.
Tap Into Community Resources
There are government and non-profit programs available to assist with necessities like food and utilities. If necessary, you can stretch your income further with the help of these resources, which will make it simpler for you to withstand the waves of rising inflation.
It is crucial to find ways of making your income last, particularly in light of inflation. Don’t worry if you’re finding the steadily increasing rate of inflation to be too much of a burden to bear; we’re here to assist you. We have a wide variety of services available to assist you with getting out of your financial obligations for good. Book a free consultation with us if you’re having trouble keeping up with the management of your finances or drowning in high interest rates, due to the debt that has accumulated over the years. At EmpireOne Credit, we have qualified financial experts that will guide you through your journey in getting the best debt reduction option that will not let you get swept up by inflation.