How have you continued to save despite recent high inflation?
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My grandmother automatically saved half of her and my grandfather’s raises.
It never felt like a sacrifice to her because they were able to spend more despite saving more.
I just realized that was during the “Great Inflation” period of the mid-60’s through early 80’s. Inflation was often 5-10% and burst to nearly 15%.
Real spending likely fell for their family of five.
How have you continued to save despite recent high inflation?Chris
I think Inflation is/can be individualized. There are some aspects that hit people more than others, for example buying a used car, or getting your house remodeled etc will impact those people but be irrelevant to those that are not.
I think it comes down to your priorities, can you push off having house remodeled a couple more years? Can your current car run an extra year or two if repaired? Can you eat in instead of eating out? Can you change the ingredients to a cheaper but comparable brand?
I’m in the UK and inflation here sucks and sucks bad, think it’s like 50% higher than the US at the moment. But the only thing I’ve noticed personally is that mortgage rates have increased (we only really have 2-5 year fixes here) and food increased.
Fuel and electric has increased, but we were able to make changes to offset most of that.Jenny
I’ve cut back drastically on junk food and eating out…I’ve lost 30 lbs in 6 months and still spending the same amount on food that we’ve always spent. I miss eating out though.Brad
The same way we always have. Invest first. And make do with only what remains. Repeat.Jack
Paid off cars (hybrid and electric) and a low fixed rate mortgage means my personal inflation rate remains low.Chrissy
By cutting back on eating out, tracking spending, diying problems, and checking with our local Buy Nothing groups for help when needing a big item (my vacuum died and someone gave me their old but awesome Dyson Animal Ball vacuum ❤️)Tony
Honestly…. if you were already saving 30%+, then this small blip isn’t too difficult. Cheaper home and car than most (the biggest expenses), and not eating out for lunches and dinners, saves a ton of money. If paying an extra $2 for eggs destroys your finances, you have larger problems.Nicole
Yes, I stopped spending on wasteful things and increased my contributions from 10% to 18%. Now that it doesn’t even hit my account, I don’t have a choice and just ensure I don’t go negative each month. Works great.Lee
Money market accounts went to 21%. In what became Silicon Valley, housing prices were jumping 3% per MONTH. Big increases in wages occurred. Lowest mortgage was 7%. This all happened to me and my little family. I saved in my company stock plan anyway, and was rewarded later with stock price increase.Teresa
Finally used this time to evaluate my eating habits. Boy I can really save by having my daughter, young adult, pay for her specialty items. Started meal planning with a healthier diet which cut down on my grocery. Car share with my daughter now that I work from home. Downsizing the items in the home by selling.Jay
Back in the day …my aunt used to automatically save ALL of my uncle’s paycheck by chasing him down to his favorite bar & grabbing the paycheck before he could do much damage.