High inflation means that the cost of everyday life goes up, with prices eating into your budget and savings. Some careful financial management can help get you through these tough times.

Canada is experiencing levels of inflation that haven’t been seen in decades. What should you do in the face of rising prices for all of the goods and services you need? While there are no quick fixes or easy solutions for such a large-scale problem, there are some strategies you can take to ease the crunch of rising costs at home.

1. Review Your Budget

Inflation is a silent budget killer, which means that it may be eating into your budget without you noticing. Go back over your budget, taking all of today’s higher prices into account, and adjust accordingly. Unless your earnings have also increased, you will likely find that you need to cut back in certain places to stay within your desired spending level. For example, see if you can reduce your number of monthly subscriptions or find a new phone or internet rate. Continue to track your spending closely so that you can adjust as needed.

2. Adopt a New Spending Strategy

There are many ways to cut down on your expenses while shopping. For example, switching to a cheaper brand can help get the prices of some of your favourite foods down to pre-inflation levels. Buying items you use regularly in bulk, if you have the funds on hand, also means getting a lower price overall. Whether shopping for clothes or snacks, make sure you also check out the sales or discount section to snag the best deals.

3. Take Advantage of Reward Programs

Another easy way to save where you shop is to make sure you are signed up for any available rewards programs, like PC Optimum points at Loblaw Companies. You might even want to consider switching your usual stores to go where you have a membership or to a store that offers better perks. This is also a great time to review the rewards offered by your credit cards, which might help you save in certain stores. Think about which cards are best used where to rack up more points.

4. Create a Plan to Tackle Debt

Canadians hold a lot of debt, which becomes even more burdensome during times of high inflation. The jump in interest rates means that some loans have suddenly become a lot more expensive, and even fixed-rate loans are harder to pay off when your other expenses are rising. If you have multiple debts, make a plan to pay down the one with the highest interest rate first to avoid paying more over the long term.

5. Avoid Taking on New Debt

In addition to tackling your current debt, you should aim to avoid taking on any new debt at this time. Try to put off big purchases that you would have to put on credit or finance. Additionally, if you must take on new debt, try to avoid variable rates in favour of fixed ones.

Dealing with inflation isn’t easy for anyone, but giving some thought to your finances, changing some of your spending habits, and being mindful of where your money goes can help take the edge off.