It’s official. You’re not imagining it — inflation is real. And like many people, your pay probably isn’t keeping pace with the unusually high inflation we’ve seen during the pandemic years.
Prices should eventually calm down as supply gradually catches up with demand, but that’s little consolation if 2023’s turbulent economy threatens to derail your finances.
Gear up. Below are five practical strategies to help you absorb some of the blow, adapt to the changes, and make it through 2023 with your finances intact:
1. Follow a Budget
If you haven’t put one together yet, a budget may be the single most effective step you can take to survive this economy.
Budgeting doesn’t mean you’re poor at handling money. It’s a tool that helps you direct your funds more deliberately so you can spend on what truly matters.
Begin with a free budgeting app, tally your monthly take-home pay and list every expense, including occasional ones. Build in space for savings, leisure, and unexpected costs.
Here’s a guide to eight of our preferred budgeting apps, many of which are available at no cost.
2. Sell a Spare Vehicle
Right now is a rough period to purchase a car. But if you own a reliable vehicle you don’t regularly use, there’s rarely been a better time to sell it.
This move could yield thousands of dollars for those who have a second (or third) car or who live near dependable public transit.
Just don’t count on buying another one immediately. If you try to replace it now, you may barely break even. The same supply issues that make selling attractive also make buying a new or used car a poor value right now.
3. Stop Paying Sky-High Credit Card Rates
Would you tolerate a 16% surcharge on groceries, plus state and local taxes? Or pay 24% extra for household items? You’d likely shop somewhere cheaper if those were up-front fees.
Yet if you carry credit card debt, you might effectively be paying as much as 36% on routine purchases over time rather than at checkout. Credit card issuers benefit from this — but there are alternatives.
If you owe $100,000 or less in credit card balances, a service like AmOne can connect you with a lower-interest personal loan to consolidate and pay off your cards.
The upside: you’ll have a single monthly payment. Since personal loans often come with lower rates (AmOne’s offers start around 6.40% APR), a larger portion of each payment reduces your principal.
You don’t need flawless credit to qualify — and checking options won’t ding your score. It takes under a minute and just 10 simple questions to see potential loan matches without entering your Social Security number.
4. Buy or Refinance a House
Rents keep rising, yet mortgage interest rates are still relatively low compared with many historical norms.
If you’re in a position to purchase a home, now might be the moment to act. And if you already own, refinancing could lower your monthly outlay and free up cash.
Caveat: in overheated housing markets you may be better off continuing to rent rather than locking into a mortgage on a home that could soften in value once supply returns.
Want to know more about refinancing? We’ve outlined the key factors to weigh before moving forward.
5. Consider a Job Change
The “Great Resignation” trend continues for a reason. Many people are leaving roles where they feel underpaid and overworked and seeking better opportunities — and many are finding them.
We’re not saying you should quit a job you enjoy. But the most direct answer to money stress is often simply earning more.
Even if you’re satisfied with your current position, it doesn’t hurt to see whether you could secure higher pay or better conditions elsewhere. It’s largely an applicant-favorable market now, and with remote work widespread, you have more avenues to advance your career and boost your income.
For those needing to trim expenses further, also check out advice on surviving on one income 25000 salary—it can offer practical ideas for living leaner when money is tight.
