How to adjust your budget to account for inflation

Jean Chatzky, CEO of HerMoney, shares some tips for how to adjust your budget to account for inflation.

Transcript

00:00Tell me, with inflation, you know, impacting everyday expenses, what adjustments should

00:05people make to their traditional 50-30-20 budgeting rule?

00:11The very first thing people should be doing is making sure they know where their money

00:18is going.

00:19And I can tell you with certainty that many, many people don't.

00:26I have a coaching program called Finance Fix, and the first thing that we do using technology

00:33is get people to follow the money.

00:35We get them to look at where their money is actually going, and they are always shocked,

00:41chins on the floor, because we don't pay attention to this stuff.

00:45We just go through life, and we swipe, and dip, and tap, and click, and spend.

00:51It's invisible.

00:53So pay attention to where your money's going.

00:55You may very well find enough wiggle room that you can get yourself back on track with

01:02inflation.

01:03The other thing that I've learned by doing this coaching program for a number of years

01:08is that the biggest budget buster for many, many people is food.

01:14Inflation has had a huge impact there.

01:18Being a little bit more mindful about your food dollars goes a long way.

01:23That means making sure that you are using the ingredients that you already have at home.

01:29Shop from your freezer before you go to the store.

01:32Making sure that you're eating your leftovers.

01:36Trying to minimize food waste.

01:38Doing a little menu planning.

01:40And when you go out to a restaurant, understand that the prices are going to be higher than

01:48they used to be, and that's something that you just have to account for in your budget.

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