Eight Tips To Help Canadian Beat Inflation

Eight Tips To Help Canadian Beat Inflation

Eight Tips To Help Canadian Beat Inflation
Reading Time: 5 mins

Inflation can really eat away at your money, and right now, inflation is making its presence felt in more ways than one. From gas to electronics, a lot of the things we buy are becoming more expensive by the day. Fortunately, there are a few things you can do to protect your money. In this article, we’ll look at eight tips to help you beat inflation.

How Does Inflation Impact You?

Inflation is a problem that affects you and your family. It’s not going away any time soon, either. In fact, it’s one of the biggest challenges people face in their day-to-day lives.

Most people don’t think about inflation until they see its impact on their wallet or bank account; when prices increase and wages don’t rise with them, they feel frustrated by this seemingly unfair situation. 

But inflation isn’t just an annoyance; it can have serious consequences on your finances.

Inflation is like a slow-moving train that picks up speed over time before eventually running off the rails entirely. 

1. Cut The Cost Of Your Debt

You can get a handle on your debt by focusing on paying off accounts with the highest interest rates first. This will help you avoid paying more interest than necessary on your debts and with the money saveid, it will also help you build up a healthy savings. 

If you’re carrying several different kinds of debt with different interest rates, consider consolidating them into one loan with a lower rate. This will make it much easier to manage your payments.

Alternatively, if you’ve tried to make payments but still have trouble keeping up with them, ask for a reduction in interest rate from the company you owe money to; the worst they’ll be able to say is “no.” 

2. Don’t Keep Any Excess Cash On Hand

Keeping a large amount of money in your possession is not a good idea if you want to protect against inflation. You need to be able to either spend or invest it in assets that can provide a return.

Remember, cash isn’t worth as much as it used to be because it loses value over time due to inflation. This means that keeping cash at home or in the bank could cost you money instead of earning interest, like it would if invested in bonds or stocks held for long periods at low risk (which would also help protect against depreciation).

3. That Said, Don’t Neglect Your Savings

While you’ll always need to spend a portion of your income, it’s important to have savings. Savings accounts are a great place to store your money. They are safe and secure and can grow your money over time by earning interest for you! 

When you put money in a savings account at your bank or credit union, the bank will pay you some interest on that money in order to encourage people like you to deposit their savings there instead of somewhere else (like under a mattress).

The idea is that the interest you earn from a high-interest savings account can offset the rising rate of inflation, which means at the very worst, you’ll break even. This is a much better alternative than keeping cash on hand because, as mentioned, inflation causes the value of cash to depreciate over time. 

4. Seek Out Inflation-Friendly Investments

An even better idea than stockpiling cash or putting your money in a savings account is to invest your money in a security to hedge against inflation. For this, there are a few tried and tested options, including real estate, low-risk stocks, and bonds. 

Investing in real estate can be a good way to beat inflation if you have the capital to do so. Real estate almost always appreciates in value and generates equity. In most cases, the equity you earn from holding real estate will be more than enough to offset the rising cost of inflation. 

Investing in stocks is another good way to beat inflation because it provides a good return on your investment over time.

Bonds are another option if you want something safer than stocks but still want an investment that has some growth potential. Bonds do increase in value over time, though not nearly as much as equities like stocks.

5. Banish Food Waste

Another way to reduce the effect of inflation on your wallet is to make sure that you aren’t wasting any food. Most households waste a considerable amount of food each year,costing them a small fortune. 

Think of it this way: if you buy a bag of apples for $5, but you only end up eating half of them, then your cost per apple is approximately 50% higher than it could have been. This means that half of your money was essentially thrown in the garbage. 

Given the rising costs of meat and produce due to inflation, the amount of money lost on wasted food is even greater than it used to be. So, plan your grocery shopping carefully, and make sure that you do your best to eat everything you purchase before it expires and goes to waste. 

6. Stock Up On Shelf Staples

Another good way to beat inflation is by stocking up on things you’ll need in the future and purchasing them when they’re in season. Buy items that you use regularly, especially if you have a large family or household. This will help ensure that your food doesn’t go bad before it’s used up, but it will also save money because many stores offer discounts on bulk purchases.

Buy non-perishable staples (such as beans) in bulk from a local farmer’s market or co-op grocery store. These stores often sell products at higher prices than national chains, but the quality of those products tends to be better than what you’ll find elsewhere and sometimes even better than organic versions!

7. Optimize Your Fuel Economy

With the price of gasoline at an all-time high, it’s more important than ever to find ways to optimize your fuel economy. There are a few ways to improve your fuel economy, which will save you money at the pump and help you beat inflation.

First and foremost, you should be aware of how much fuel you use on a given trip. If you’re not sure, keep track of the mileage reading on your dashboard or ask someone who knows about cars (such as a mechanic). You may be surprised at how much gas is going through the tank each week.

Next, drive smoothly! Avoid jackrabbit starts and other sudden acceleration that wastes fuel. Of course, this isn’t always possible with heavy traffic around but try to avoid getting into a high-speed race with other drivers if possible. 

Also, remember that keeping up with traffic flow, even when there aren’t any cars directly ahead, can save significant amounts of gas compared to driving too slowly for traffic conditions in order to save money from idling and burning off excess energy from engine speed fluctuations.

8. Put An End To Banking Service Fees

The final tip for offsetting the cost of inflation is to stop paying expensive bank fees. There are many options available to avoid paying these fees and to keep more money in your pocket:

One option is to use a credit card with no annual fee. Some cards charge high interest rates or have other fees that make them less than ideal for long-term use, but there are plenty out there with no such drawbacks and even some that offer rewards programs to sweeten the deal. 

You should also use your debit card instead of taking out cash whenever possible. Debit card transactions will generally incur fewer fees than cash withdrawals from an ATM, and most debit cards do not come with annual fees like their credit card counterparts do.

Conclusion & Recommendations

The tools we’ve discussed in this article can be used to help you mitigate the impact of inflation on your financial health. By using these tools, you will be able to make adjustments with little hassle and minimal risk. While no single method will work for everyone, by combining multiple strategies, you will be well-positioned to weather any storm that comes your way.


Money-Saving Resources

6 Money Moves If You Have an Extra $1,000
Six Great Reasons to Buy a New Car Over a Used Car
Money-Saving Tips for Canadian Seniors on a Fixed Budget
Notify of
Inline Feedbacks
View all comments