If you’ve been to the grocery store lately, you’ve probably noticed that things are expensive, much, much more expensive than they were even a year ago. The reason for this, of course, is extreme inflation. But what is driving inflation? And even more, how do you combat it? We’re going to go into both questions in this article, helping you to handle rising inflation with as much rationality as possible.
What Is Driving Inflation?
Right now, as always, there are all sorts of factors driving inflation. The most prominent of these factors include:
The War in Ukraine
At the present, perhaps the biggest driver of inflation is the war in Ukraine. Russia’s invasion of Ukraine has caused substantial strife in the energy sector and has therefore driven up the price of fuel substantially.
While there has been some bounce back from this, it’s most certainly still having a strong negative effect.
Supply Chain Issues
The effect of the pandemic has been seismic and has drastically reduced the efficiency of the world’s supply chain. Add in the war in Ukraine, and you’ve got a supply chain issue the likes of which haven’t been seen in years.
As you might expect, this has a terribly negative effect on inflation. Because there aren’t as many goods available, manufacturers and retailers must drive up their prices as a means of making a profit. Ergo, seismic inflation is taking place.
Increased Production Costs
Increased production costs are another source of rising inflation. After all, when it costs more for a manufacturer to produce something, they’re going to have to charge more to make a profit from it. Inflation is the result.
There are all sorts of sub-factors that can drive production costs. For instance, if the cost of a certain material rises, the manufacturer will have to pay more in order to use it in its product. To account for the extra money spent on the material, the extra money will have to be charged for the final product.
As the stresses of the pandemic increased, more and more workers left low-wage jobs in pursuit of higher wages. This left many low-wage openings available but with few people to fill them.
As such, employers started to increase wages for these jobs. This increase in wages resulted in employers bringing in less profit. So, to combat that problem, they had to drive up the prices of their goods and services.
This, of course, has resulted in inflation.
How to Combat Inflation
Combatting inflation can be difficult, especially if you work a full-time job with a set salary. That said, there are strategies you can utilize. They include the following.
Take Up a Side Gig
If you’ve got the time and wherewithal, you could just take up a side gig. There are plenty of things you could do to bring in an extra 50 to 100 dollars a week.
For instance, you could pick up freelance writing. Or, you could get a seasonal job at a department store. It’s not necessarily the most desirable option, but it will help you pay the bills.
Cut Out Those Little Expenditures
Another way to combat inflation is to cut out those little expenditures. This includes things such as donuts, restaurant coffee, and the like. These are not necessary expenses and can be replaced with cheaper options.
For instance, you could make coffee at home. Or, you could buy donuts in a bundle from a grocery store as opposed to buying them individually from a donut shop.
Lay out a budget and see which expenses are flexible. Then, take advantage of those flexibilities.
Take Out a Loan
If a side gig isn’t an option, you could also just take out a loan. This loan can be used to cover your expenses while you wait for a raise or secure a new job.
Yes, there will be some interest that you have to pay. However, it would enable you to stay afloat during these tough times. If you’re interested in taking out a loan, read this.
Drive as Little as Possible
Inflation has been particularly impactful on the cost of gasoline, driving gas prices up to the point that it’s making it difficult for people to get by. Yes, prices have dropped a bit, but they’re still extremely costly.
You can combat this problem by driving as little as possible. Find the most fuel-efficient way to work and don’t deviate from it. At the end of the week, you’ll have saved a decent amount of cash.
Wipe Out Credit Card Debt
The more credit card debt you have, the more interest you’re going to have to pay from month to month. This is why, if possible, you should wipe out some of your credit card debt.
Putting $200 extra toward your credit card could lessen your interest payment by a good $5 to $10 a month. This isn’t a substantial amount of money, no. But it does help to lessen the overall load. Not to mention, it puts you closer to paying off your debt in full.
Combat Inflation Costs With a Loan
Now that we’ve answered the question “what is driving inflation?”, you might be looking for help in combatting it. If so, you’re in the right place. Kingcash can help you.
We offer quick cash loans that enable our customers to get their hands on spare money in mere hours. Interested? Claim your loan now!