There has been an interest rate hike by the Bank of Canada and there has been a dramatic spike in the cost of groceries and gas. You are not alone if you are finding it harder and harder to make ends meet.
I bought groceries yesterday and paid over 15% more for some of my food than what I paid a few weeks ago. It’s a huge jump in prices, which can be hard to absorb. If you have more than one mouth to feed, it makes things that much more difficult.
Combat rising costs with long term budgeting solutions
You may feel the need to let off some steam about the rising prices. Once you have done that, the next thing to do is fight back by creating a budget. Create a long term budget that factors in what you expect to pay for what you buy. If your mortgage payment will increase, factor that in too. If you haven’t read our blog on long term budgeting yet, here is a link to it. https://moneymeasuresinc.com/long-term-budget-and-cash-flow-plan/
When times are tough financially, you may be tempted to shrug your shoulders in defeat and buy more things on credit — even necessities like food. With long term budgeting, you can avoid accumulating credit card debt, even when times are tough.
There’s budgeting software that uses past spending to give you a general idea what your cash flow may look like in the future. However, it can’t create a budget that accounts for the huge and immediate jump in prices we are currently seeing.
The Money Measures web app is different because it has features built in that make realistic projections possible. You can see how expected income and expense payments will play out in real time. If you understand patterns and algorithms, it won’t take you long to know how the Money Measures web app can do what it does. However, you don’t need to understand patterns and algorithms to create a budget with this web app and get it working for you. (Note: The Money Measures web app doesn’t connect to your bank account.)
Convenience shopping and making ends meet
The cost of convenience shopping may be something you thought about in the past but didn’t act on it. Depending on your habits, the cost of convenience shopping can really add up, so it’s worth thinking about. Here is a link to an article about the cost of convenience shopping. https://moneymeasuresinc.com/cost-of-convenience/
In conclusion
The cost of groceries and gas has increased substantially. Price increases have been huge and immediate. Two things you can do that can have a huge and immediate impact on your pocketbook in a positive way are creating a long term budget and reducing what you spend on convenience shopping.
As for the hike in interest rates, here is a link to information about the Bank of Canada’s hike in its key interest rate and things to consider. https://www.theglobeandmail.com/business/article-fixed-or-variable-how-to-decide-as-interest-rates-rise/
Contact us today for information on our long term budgeting solutions.
