Managing expenses helps counter inflation

Published 12:48 pm Monday, August 8, 2022

Life’s not always easy, even in the best of times. And now, while caught in the throes of the highest price inflation since 1981, it’s become even tougher for some.

Seemingly without warning, families across Virginia are asking themselves every day, how to make the best use of their money, during tight financial times.

Where to cut? What to eliminate? Might sound simple, but making the right decisions on stretching the family dollar isn’t always easy to do. The key is being open-minded.

“It is very important to make choices that provide lots of flexibility,” said Dr. David Lehr, economics professor and department chair at Longwood University. “Be nimble and resourceful. It is not necessarily pulling back and hunkering down, but being forward — looking and willing and able to change course should your home finances or business conditions change unexpectedly.”

Traditionally, during good times and bad, public and private financial planners advise families to always keep a close eye on family finances and household budgets.

Making Some Changes

A shortlist of household cost-cutting actions can include eliminating unnecessary expenses, shopping for groceries differently, reducing home energy bills, being more fuel efficient, paying down on debt, increasing income and saving for the future,

It’s important for households to be prepared well in advance for budget and economic uncertainties, rather than be caught financially off guard by changing monetary cycles that are beyond their control.

“In the short run, it is difficult for ordinary citizens to do much to fight inflation,” said Matt Holt, economics