6 Inflation-busting money tips

How to conquer price increases and maintain your lifestyle in 2024

Whether you’re preparing to relocate for the CAF and looking to refresh your household budget, or trying to ensure you maintain your current lifestyle, check out these tips to beat inflation and maximize every dollar you earn, tailored for military families.

1. Track your spending

Before you know where you can trim the fat, you want to realize what you’re currently spending money on. Take note of how you spend money each month and where you may be seeing the biggest price increases on household goods and services in 2024. Look for fluctuations in spending. Are there months with a lot of birthdays when you may need more for gifts? Or perhaps you redirect spending when a member is on tour. Childcare costs may increase temporarily, for example, but you find you’re spending less on gas for the cars

2. Create a budget

People think a budget is restrictive. But having a plan for your money buys you more freedom. Sound cliché? With an accurate plan, you can avoid impulse purchases and consider where to spend less, how to pay down debt more quickly and save money for the future. Tip: Look at hidden costs like subscriptions and autopayments. Are you using that museum pass or a streaming service, or have you delayed cancelling? Some subscription service providers will allow you to pause temporarily in the summer months or when you’re deployed and unable to take full advantage of the service.

3. Pay down debt faster

Every CAF member and veteran gets free financial advice through SISIP Financial. Ask your advisor if you’re in a good financial position to pay more than minimum payments on your debt, especially on high-interest loans like credit cards. For mortgages and lines of credit, you could benefit from boosting payments now, especially if you’re locked in at a low payback interest rate. You’ll thank yourself when you renew.

4. Look for deals on everything

CAF members, veterans and their families get great discounts on travel, gear and more through CF One Member Appreciation. Be sure to take advantage of that. But also look at coupons, apps, retail reward programs, anniversary sales, and price matching. It all adds up. If you think you’re paying too much for telecom or another regular service, consider calling your provider and asking for a better deal.

5. Invest any “extra” money

CAF members routinely receive temporary or one-off allowances. You may even receive a lump sum of money. Consider taking your per diem, tour pay, spousal separation or deployment allowance and investing in your future. With the right savings plan, you’ll pay less income tax now, keep more money, and watch your savings keep pace with -- or even outgrow --inflation. This ensures you don’t fall short if things get more expensive in the months and years to come.

6. Carefully consider big-ticket purchases

Watch out for lifestyle creep when you get a salary increase or a temporary bump in your monthly income. It’s tempting to buy that new truck or take an expensive vacation. Even with extra cash in hand, it’s important to understand your spending limits so you don’t get overstretched. Ask your SISIP advisor to help you plan for bigger purchases so you can maintain your lifestyle.

The comments contained herein are a general discussion of certain issues intended as general information only and should not be relied upon as tax or legal advice. Please obtain independent professional advice, in the context of your particular circumstances. This article was written, designed and produced by SISIP Financial, for the benefit of SISIP Financial, Investment Funds Advisor, a registered trade name with Investia Financial Services Inc., and does not necessarily reflect the opinion of Investia Financial Services Inc. The information contained in this article comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any securities. Mutual Funds are offered through Investia Financial Services Inc. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated.