INFLATION AND YOU IN 2023

What are you going to do about inflation in 2023? Please leave your comments on the discussion board below, and please come back later to keep the conversation rolling. We have all year to discuss it. 😊

Here are my main points. And, really, these are good ideas in ANY economy. So, if the economy tanks, you know we are in a big recession, these are still good ideas to deploy.

Number one, avoid the market as much as possible. Think about it. How much of your “economy” is based on markets and market prices? How much of that can be adjusted or eliminated?

Well first, food. Do you raise ANY of your own food? If not, why not? I would like to hear about that below. There are solutions for any living situation.

Then there is entertainment. According to Wallet Hub Americans spend about $3500 a year on entertainment per household. GOOD LORD. This likely includes streaming services, data plans, etc. When was the last time you considered how much you spend on these things? Do you really need them all? Do you really need them at all? Save those earnings and PAY YOURSELF first, not some corporation.

And finally, there is transportation. Do you live near your place of work? Why not? Look, I realize sometimes it is not possible, but if you work in a small city, you might consider living within walking distance of your place of employment. We do and save a LOT of money on gasoline and car maintenance.

And if you commute, have you considered finding someone to carpool with? You can cut off half of your gasoline budget with that method alone, or even a third if you can find three people to switch it up. You are each avoiding the market by ½ or 1/3.

Number Two, avoid brand names and avoid new. Whatever you need to buy as in you MUST have the item, look for the best price and ignore brands. A great example is the smart phone. What if you chose a cheaper alternative and paid YOURSELF the difference?

Related to ‘avoid brands’ is avoid new. Will a used alternative serve just as well? Get it. And PAY YOURSELF the difference. You worked hard for that money. Why not PAY YOURSELF first?

Number Three, when you MUST use the marketplace do you use a credit card? Why not? Use it but PAY IT OFF every month and every time. Do not OVERUSE it. Use it for groceries and gas, regular purchases and pay it off at the end of the month. WHY? It is not about building your credit score. It is about the CASH BACK programs. You will gain 100s of dollars a year simply by using their method of payment. Just make sure you do not overspend.

Which brings me to this warning. Do NOT use a credit card if you lack discipline. The key to this technique is paying it off EACH MONTH. Not when you can, but EVERY TIME. Do you have the discipline to do it? Leave a comment below and let us know.

Using a credit card in this manner is a trick to avoid interest and flip the flow of money YOUR WAY. Which you can then store in safe investments such as a bond fund or a regulated utility stock and EARN interest or dividend income. In essence, you are using their money, the banks, to earn interest & dividend income. 😉

And this leads us to Number Four. PAY YOURSELF FIRST, and then spend the remainder on leisure and what not. Most people think of it the other way around, but, well, that is bad thinking.

Figure out the MUST HAVE budget items you need such as rent, food, utilities, and insurance. The necessities. Then realize that the remainder is YOURS. Do you want to pay someone else or PAY YOURSELF FIRST? For example, are you paying for streaming services when you could simply save that money and watch free TV, listen to free radio and watch free videos on the internet? You just need to realize that when you give that money to someone else you are taking it from yourself!

I really hope you join the discussion below. I would love to hear your perspective and your plans for inflation, or recession, in 2023.

And remember, PAY YOURSELF FIRST! It is your earned money, after all.