Experts Share 5 Things To Do in March To Keep Growing Savings While Inflation Rises
Written by
Lydia Kibet
Edited by
Rebekah Evans
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Inflation is the silent wealth killer. You might not notice it right away, but it silently erodes your savings over time. You don’t have to sit back and watch your money lose value while you can make smart financial moves and keep your savings growing even with the rising inflation.
Take Advantage of High-Yield Savings Products
The best way to keep up with inflation is by putting your liquid cash somewhere it can grow. High-yield savings products like money market accounts and certificates of deposit offer competitive interest rates.
“Take advantage of what is essentially free money by putting some money you can afford to save into high-yield products such as CDs or money market accounts. Make your money work for you,” said Suzzette Bruce, assistant vice president and branch manager at Addition Financial.
Track Your Spending
Inflation impacts everyone differently. That’s why it’s important to know where your money is going before making adjustments. Knowing where inflation is hitting your budget hardest lets you cut back and channel that money to your savings account.
“Go see where your actual expenses have risen due to inflation. For example, someone looking for a home today versus a few years ago is going to feel the impact. However, someone who has stayed in the same home with the same mortgage payment, maybe not as much,” said R.J. Weiss, certified financial planner (CFP) and founder of The Ways to Wealth. “So, a good thing to do is check in to see where you’ve actually been impacted. If you have been impacted in certain areas, now you have something to focus on, rather than just blaming your overall finances on inflation.”
Start a Side Job
One of the best ways to stay ahead of inflation is to increase your income. While cutting expenses helps, earning more allows you to grow your savings without sacrificing your lifestyle.
“Shovel snow, bake cookies or walk dogs. Find something that people need, provide that service and save what you earn,” said Melanie Musson, insurance and finance expert at Insurance Providers. “Since March is the beginning of spring for many parts of the U.S., it might make sense to help people clean up their yards and paint their trim for spring cleaning projects.”
Pay Down High-Interest Debt
High-interest debt is one of the major obstacles to growing your savings. Every dollar you pay in interest is a dollar that’s not working for you.
“If you have an outstanding loan that is over 4 to 5%, it can make sense to pay that down. High-interest debt can slow down your savings and take away money you could be using to grow your wealth,” said Chad Gammon, founder of Custom Fit Financial.
When you get high-interest debt out of your way, you free up more cash to put toward savings and investments.
Invest
The stock market can feel scary and risky, especially with the current volatility. However, by investing and thinking long-term, you give your money the chance to grow and outpace the rising inflation.
“If you’re nowhere near retiring from your 9 to 5, you should also consider investments,” said Lucas Barcelo, founder of Thrivin Life. While they may be risky, you have time to risk temporary gains for long-term track records of growth. Long-term investing is the current best approach to beating inflation and having your money grow steadily.”
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