The cost of living adjustment for 2022 is set at 5.9% – the highest its been in decades. However, the COVID-19 pandemic and the latest highly contagious Omicron variant is wreaking havoc with the rate of recovery of the American economy which has been in one of its greatest contractions in history, as a result of the pandemic.
Living off Social Security benefits or/and supplemented social income might be difficult usually, especially if you are a retiree – with the latest soaring high inflation rates, that surpass the cost of living figure – might, in reality, make it even more difficult. This article, thus aims, at supplying some practical and useful tips on how to cope with soaring inflation when living on a fixed income. Read on if you are interested.
Postpone Big Spending
To begin, according to News Break, it is advisable to “postpone large purchases”. As, at present inflation is said to be at least 6%, with some estimates believing it is closer to 7% – it might be advisable that you postpone large purchases for now, such as doing home improvements, buying a car, or other big purchases. Right now, with such high inflation, and therefore the increase in costs of goods and services, it just might not be sensible or feasible to participate in such spending. Wait until inflation decreases, and only then engage in larger purchases or spending.
Try to find cheaper products – the U.S. market is competition-driven. There are many generics and cheaper products that you might be interested in such as soy supplements for beef or no-name brand baked beans. Indeed, sacrificing on comfort, and prestige of the label that is bought is part of a product – and looking for cheaper alternatives can leave you with extra – or at least enough income to cope during these economically trying times.
Lastly, according to News Break, you can try your very best to cut down on energy costs. Make sure the thermostat is turned down, your flat, apartment, or house is well insulated and if possible perform all high energy tasks – tasks that draw a lot of electricity during peak times. This can save you a lot of money.
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