With recent rises in inflation, many people are left wondering how they are going to afford the cost of living. Gas prices, groceries, and other prices seem to keep increasing each week. There are ways to adapt to and survive rising inflation that might be able to help you avoid a financial pitfall. However, if you are already finding yourself headed towards bankruptcy, then talk to a Tullahoma bankruptcy lawyer about your legal options.
CHALLENGES OF HIGH INFLATION
Compared to inflation rates of 1.8 percent before 2020, the 7.5 percent annual rate of inflation in 2022 is highly concerning for many people. Thousands of people in the United States have begun feeling the effects of higher inflation. As prices keep rising, financial concerns grow larger.
Not only does inflation impact gas and transportation prices, but also housing prices, food costs, and energy expenses. Renting or buying a home has become less affordable as a result. Food prices concerning groceries and restaurants have also increased significantly. Energy expenses are rising and consist of gas, electricity, and natural gas bills.
With each of these categories of expenses increasing, the overall cost of living is also increasing. The scariest aspect of rising inflation is that life necessities become more expensive as time goes on. Other effects of inflation include:
- Increased interest rates on loans and mortgages
- Increased economic problems
- Higher chances of falling behind on bills and debt
- Greater debt build-up
- Lower quality purchases
Companies may cut back not only on the quality of their products but also on the number of employees. When inflation rises too high to sustain a company, the company will often fire employees. As unemployment increases across the United States, what usually happens is inflation usually slows down. This is often called a recession.
HOW TO SURVIVE INFLATION
There are ways to adapt to and survive inflation. Part of surviving inflation is finding new ways to save money by cutting expenses and budgeting. When money is tight, the best thing to do is have a spending plan. Overspending will hurt people who do not have the financial means to deal with rising inflation.
Start by creating a monthly budget. All this involves is breaking down how much money you spend and make each month, on average. Subtract what you spend from what you make and see how much money is leftover. If you have no money or not enough money leftover, then figuring out what unnecessary expenses to cut is next.
Remember, this is temporary and only until inflation stabilizes. Based on your monthly budget, create a concise shopping list each week. Following this list will reduce unnecessary spending. Eating at home, buying off-brand items, and cutting out subscriptions can all add up to saving a substantial amount of money.
BANKRUPTCY LAWYER IN TULLAHOMA, TN
Bankruptcy is often one of the most stressful financial situations to go through. Contact us today at Tom Bible Law by dialing (423) 690-7712 for a consultation about your options for bankruptcy. Our legal team of Tennessee bankruptcy attorneys might be able to help you escape your tricky financial situation. We serve clients throughout the Tennessee cities of Chattanooga, Kingsport, and Tullahoma.