Navigating the Challenges of Rising Economic Costs

Groceries are more expensive than they used to be. Home prices are significantly higher than they were a few years ago. Automotive prices are up, insurance rates are up, and even basic staples like eggs have been more expensive in recent years.

The rise in inflation is no secret, but dealing with a challenging economy can feel overwhelming. To help make sense of the economy, let’s dive into the factors for inflation and what you can do to adjust how you’re managing finances at home.

What Is Inflation?

The best way to describe inflation is the rate at which prices for goods, like groceries, or services, like car repairs, increase over time. Inflation is a fundamental aspect of economics, affecting everything we purchase. Goods tend to increase in price as they change hands, even when their intrinsic value remains the same. This explains how a sandwich that cost $5 just 15 years ago might cost $8 or $10 today. The sandwich itself has not become more valuable, but the buying power of the dollar has decreased.

What Causes Inflation To Spike?

Inflation and wage growth ideally increase in tandem, allowing consumers like you to maintain their purchasing power. It may seem mind-blowing that previous generations could buy a home for under $30,000, but wages were significantly lower at that time, too. When wage growth and inflation move at similar rates, the economy remains more stable.

However, there are periods when inflation outpaces wage growth, especially following interest rate hikes like those seen in the late 2000s and early 2020s. During these times, purchasing power declines, leaving consumers with less money to buy essential items or save. That’s what we’re here to help you address today.

Tips for Handling Economic Challenges

Facing economic challenges can be daunting, but small, strategic changes for managing your finances can give you peace of mind.

Assess Your Subscriptions

While subscription-based services have been around for centuries, it seems like practically everything comes with a monthly payment in this day and age. From online audiobooks to printers and even certain features of your car, these bills can seem inescapable.

Fortunately, you can often cut back on subscriptions with little to no impact on your lifestyle. Do you have a Netflix or Hulu subscription you only use for a single TV show? Purchasing seasons of shows or movies on Apple TV, Amazon, etc., might be more economical than paying a recurring fee. The same goes for services like audiobook subscriptions or cloud storage you rarely use.

Spend Your Money on Groceries Instead of Eating Out

If you have the time to cook, it’s often far cheaper than eating out. Raw ingredients cost less than their preprepared versions, and they tend to be fresher and contain fewer preservatives. Staples like rice, pasta, fresh vegetables, and basic proteins can be combined into dozens of delicious meals.

We’re not suggesting you avoid dining out entirely—eating out can be a great way to enjoy a meal and socialize. If you do choose to go to a restaurant, try dining in person rather than using delivery services like Uber Eats or DoorDash. While convenient, these platforms often come with steep fees that add up quickly, making each meal cost significantly more than it would otherwise.

Clear out Clutter With Self Storage

Another service you may be paying for unnecessarily is a home cleaning service. If your house or apartment constantly feels cluttered, your real issue may be a lack of space, rather than messiness. Renting a storage unit may seem counterintuitive when trying to save money, it has several benefits, such as:

• Hanging onto belongings. When you don’t have room for winter clothes or summer gear, you may be tempted to donate them and repurchase them next year. A storage unit gives you the space you need without sacrificing your belongings.
• Organizing your home. Instead of buying closet organizers or extra shoe racks, make decluttering simple with a storage unit.
• Maximizing available living space. If you want to rent out a room in your home for some supplemental income, your storage unit is a convenient spot to keep large furniture items that would be expensive to replace.
• Separating your personal and professional lives. Speaking of supplemental income, if you’re starting a small business but don’t want to clutter your home with supplies or paperwork, self storage is a valuable asset for any entrepreneur.

Browse Available Storage Units From Access Self Storage Today

At the end of the day, your plan for managing finances should align with your unique situation. Whether you decide you need extra space for the short or long term, we have a storage unit to fit your needs and budget.

Our flexible month-to-month rentals make it easy to rent storage as long as you need it without overspending. Explore our competitively priced storage options and call us to find the affordable storage space you’re looking for today!