With food prices, there are a few simple strategies to prepare for inflation. I believe it is prudent to begin preparing now and purchasing items before you require them. This is what I’ve been concentrating on recently. In its most basic form, a stockpile is just that.
Assume the price of toilet paper increases by 15% this year. That means the $10 toilet paper package you buy every month will soon be $11.50. That’s an extra $18 each year merely to buy the same toilet paper you were buying before. If you multiply that scenario by a number of things increasing in price, you’ll see a significant influence on your budget.
What if there isn’t any inflation? You’ll still be prepared and won’t have to purchase some of these products for a while. Because costs aren’t going down, you won’t lose anything. They may or may not increase at the greater rates predicted by some. If the hyperinflation predictions come true, you will have saved money for your family by purchasing items ahead of time while we wait for inflation to return to more normal levels.
“Buy one now, and two later,” as the old adage goes. Never let yourself get to the end of your food supplies.
Always be on the lookout and purchasing ahead of time. When you come across a good offer, buy as much as you can, especially non-perishables.
Personally, we are relocating funds from other sections of our budget in order to focus on purchasing some additional items right now. You should think about doing the same.
Are you trying to figure out what to buy before inflation? Here are a few essentials to stock up on before inflation kicks in.
Build a stockpile of non-perishable goods.
This is one of the most effective methods for anticipating inflation. Now is the time to stock up on items that will not expire or spoil. When I uncover good prices, I usually focus on establishing a food stockpile. Right now, I’m concentrating on accumulating a non-perishable food supply.
Build a stockpile of things you use regularly.
Expand your stockpile in the same way as before, focusing on the items your family utilizes on a regular basis. Don’t think about eating just yet. Concentrate on toiletries and other items that you use. Don’t buy goods you won’t utilize because it’s a waste of money. Consider stocking up on these items before inflation sets in.
Build a stockpile of foods your family eats.
The perishable products that your family consumes on a regular basis are the last section of your stockpile that you should concentrate on.
Purchase extras of the food items you use whenever you notice a good offer. If you have extra freezer space, concentrate on buying meat when you can get a good deal.
When it comes to canned goods and other packaged goods, buy only what you’ll use before they expire.
If you’re wondering what food to stockpile before inflation rises even further, consider the following:
Can you save a few dollars this week to purchase an extra roll of toilet paper? Or can you find some additional cash to buy a few extra diaper packages? Is it possible to buy four containers of dish soap instead of one? Keep in mind that anything you purchase now will assist you in planning for the future.
I just produced a printable PDF called “The Quick Start Guide to Building a Stockpile on a Budget” if you want to learn more about stockpiling. It’s jam-packed with useful hints, checklists, and more to help you create a stockpile even as inflation rises! More information can be found here.
Shop Your Pantry
Make it a practice to examine the shelves of your cupboard before going grocery shopping. Canned goods, pasta, and other cupboard staples have a habit of disappearing into dark corners.
You can prevent buying multiples of the same item by taking inventory of what you already have at home. You might be able to cut your shopping list in half (and spend less). You’ll also decrease the likelihood of food spoiling before you remember to eat it.
Instead of going out and buying pricey goods, consider a pantry challenge to use up what you already have at home. Don’t limit yourself to pantry products for your challenge. Before you go out and buy more of the same, check what you have in the freezer and what toiletries you already have.
Do Meal Prep
You’ll be less likely to waste money on something that looks wonderful at the supermarket but you never get around to eating if you plan out your meals and make grocery lists based on a meal plan.
This expert meal prep advice easily explains how to get started with meal planning ahead of time.
Minimize Food Waste
When you spend a higher price for food, the last thing you want to do is squander it. It’s the equivalent of squandering your hard-earned wealth.
You’ll never have to throw out rotten cheese or stale bread again if you follow these recommendations for reducing food waste.
Choose Store Brands Over Name Brands
Name-brand groceries are already more expensive than store-brand alternatives. And in many cases, it’s difficult to determine the difference between the two.
Switch to generic brands to save money on groceries as prices rise. Perhaps you’ll find a new favorite.
Buy in Bulk
While buying in bulk will cost you more money up front, it is a wise decision. You’ll usually pay less per item.
You could always split your shopping haul with a friend or family member if you don’t need a three-box bundle of cereal or ten pounds of macaroni noodles. Alternatively, you may use this as an excuse to go grocery shopping less frequently throughout the month.
Cut Back on Meat
Because beef, pork, and chicken are among of the more costly commodities in the shop inflation or not cutting back on meat will have a major impact on your grocery spend.
Going vegetarian for a day or two a week and substituting cheaper options like as beans and lentils can help you save money.
Save Money on Produce
Even while costs are rising, there are still methods to save money on fruits and vegetables – even if you don’t grow them yourself.
Purchasing vegetables from local farmers, sticking to what’s in season, and opting for frozen over fresh are just a few ways to save money on food.
Buy Reusable Instead of Disposable
Which is better: buying something for $5 that you only use once and then trash away, or buying something similar for $10 that you can use multiple times?
Reusable products are more expensive up front than disposable products, but they usually end up being a better deal because they last much longer. It’s a benefit that it’s better for the environment.
These nine comparisons demonstrate how purchasing reusable items rather than disposable items can help you save money.
Be Smart About Filling Up
The cost of gasoline continues to rise, not just owing to inflation but also as a result of the conflict between Russia and Ukraine. You still have somewhere to go, which means petrol is a need.
Carpooling to work can help you save money. Signing up for gasoline reward programs or using fuel comparison apps to locate the best gas prices can both help you save money. Additional tips on how to save money on gas can be found in this post on how to save money on gas even as prices climb.
Share Tools and Equipment
Sharing the expense of something you’ll only use once in a while is a better value than paying full price for something that will sit unused the most of the time.
Consider giving expensive tools and equipment, such as a stand mixer or a leaf blower, to a neighbor, a friend, or a family member who lives close.
Learn to Barter
Instead of paying full price for goods and services, you can resist price inflation by bartering with a friend or family member.
Perhaps a buddy has leftover lumber from a home improvement project that you can use in exchange for free graphic design work for their small business. Perhaps you could dog sit for a family member in exchange for a couple free meals while they’re out of town.
Get Free Things from a Buy-Nothing Group
Getting free things from a local Buy Nothing Group allows you to avoid paying expensive retail pricing and you don’t have to give up anything in return. Rather than trading or bartering, these organizations rely on donations.
How do you safeguard against inflation?
If you use at least one of these investment strategies, you will be able to offset the impact of inflation. If you stick to the first two, you’ll be fine as inflation starts to rise. Follow three, and let your imagination run wild!
Buy Physical Gold and Silver
You may totally protect yourself against inflation by investing your dollars in tangible assets such as gold or silver. The price of these precious metals tends to rise as the value of the dollar decreases.
Furthermore, silver differs from gold in that it is in limited supply and is employed by major corporations all over the world. Silver is still used where gold is hoarded, and its value will only rise as the silver supply decreases over time. Having a mix of each of these precious metals on hand is an excellent method to guard against growing inflation. To avoid being duped, make sure you have the metals on hand and buy them from a reputable merchant.
Invest In Other Currency
If the value of the US dollar falls, the value of other currencies rises (at least relatively). The Euro is 1.5 times the worth of the dollar, according to my calculations, but don’t take my word for it. If you choose to invest in other currencies, make sure you understand what you’re doing because it may be incredibly risky if you don’t.
However, if you play the market correctly, you can still come out on top by diversifying your currency holdings in your investing portfolio. Again, make sure you have physical currency on hand, as market-based “derivatives” of paper currency can be manipulated, putting you at greater danger than if you had it physically.
Invest in Positive Cashflow Producing Real Estate
If you’re going to put your money into real estate outside of your own home, make sure the properties you buy will generate a positive cash flow on a regular basis. If you’re not sure what that implies, make sure that the renter’s monthly rent covers all of the property’s maintenance costs. Also, save some money aside for yourself because this is a form of passive income.
The beauty of owning cash flow real estate is that you not only make money on a monthly basis, but you also have the potential for asset appreciation. You also get to generate phantom income by deducting the depreciation of the property’s structure over time. Whatever you do, avoid investing in a property that will generate a negative cash flow from day one…this property will eat you alive, even if its value rises. I would strongly encourage you to seek expert guidance from your advisers and mentors before investing in real estate.
Start a Business
You begin to construct an asset by beginning a business, which increases or decreases in value as inflation rises or falls. The rate of inflation has no direct impact on the value of your firm, but it does have an impact on the prices you may charge for the goods and services you give to the market.
You may mitigate the effects of inflation by managing your business cash flow each month and using the additional cash flow to invest in real estate and physical precious metals. Working, on the other hand, provides you very little, if any, influence over your earnings.
Find The Highest Interest Bearing Saving’s and Checking Accounts
Even if inflation becomes extremely high, we will all need to keep some cash on hand at all times. Keep your money in the highest-paying savings/checking accounts (here’s a list of the finest Online Savings Accounts) or treasury inflation-protection securities to put yourself in the best possible position (TIPS).
As inflation rises, these vehicles will be safer for your money than others that don’t earn interest or more speculative investments. No matter what the rate of inflation is, having cash on hand is essential. Just make sure you’re getting the best interest rate available, regardless of where you keep your money.
These are the best recommendations I can make to assist you weather any “inflation storm” that we are certain to face. If you have any other recommendations for readers, please leave them in the comments!
What should you buy right now?
- Pasta! Our favorites are linguine, fettuccine, spaghetti, penne, and rigatoni in all shapes and sizes. Purchase a large quantity; it will last a lifetime. We’ll also get some tortellini and gnocchi, both frozen and refrigerated. Also, get some canned sauce.
- Food that has been canned. Are you familiar with this one? To make this dish, you’ll need canned tomatoes, canned coconut milk, and canned beans (black, pinto, refried, garbanzo). Find out more about the canned items we keep in our pantry.
- Eggs. They also have a long shelf life and are extremely versatile. A six-minute egg transforms even the most basic foods (such as a piece of toast) into a meal.
- We’re stocking up on fresh vegetables that last: cabbage, cauliflower, potatoes, and sweet potatoes. We’re going to get some bell peppers and mushroomsthey won’t last forever, but they’ll do for a while, so we’ll simply use them up first. Carrots can also be kept for a long time if peeled and stored in water in the refrigerator.
- Frozen vegetables We wrote a whole post on it, but for the sake of this grocery list, we’ll just repeat our favorites! We’re going to load up on frozen broccoli, kale, and spinach.
- Alliums! There’s a lot of garlic and onions in this dish. Shallots, onions, and ginger are also used. All of this will last for a long time. A word of advice: don’t keep them in the fridge. Put them in a dish on your counter and keep them there.
- Spices and seasonings This is a must. These are the magical ingredients that will add lift, sunlight, and brightness to your pantry meals in the coming weeks. Stock up on Italian seasoning, curry powder, chili powder, cayenne, red pepper flakes, Better than Bouillon (one tiny jar takes up a fraction of the space that a carton of stock does), cumin, smoky paprika, red curry paste, garlic powder, onion powder, and fresh herbs (keep parsley and cilantro in a bit of water on the counter to make it last). You may learn more about our five must-have spices by clicking here.
- Condiments. Make sure you have soy sauce, vinegars, mayonnaise, ketchup, and Dijon mustard on hand. In our house, too, sambal oelek chili paste is a requirement.
- Butters made from nuts. Although peanut butter merits its own category, we’ll also be stocking up on tahini.
- Fresh and frozen meats are at the top of our list, including steak, frozen chicken breasts and thighs, frozen sausages, frozen bacon, frozen ground beef, and frozen ground chicken. If you want a more comprehensive list, you can find all of our favorite frozen meals HERE.
- Fruit. Oranges, bananas, apples, lemons, avocados, and limes, as well as some frozen fruit! Blueberries, frozen, are at the top of our list.
- Treats! It’s almost as significant as the others. We’re stocking up on chocolate chips, flour, sugar, butter, cocoa powder, oats, raisins, and all of our other favorite baking ingredients, because if there was ever a time when frequent cookie baking and random just-for-fun cake-making were required, it’s now!
Why are the shelves in 2022 empty?
You’re not alone if you’ve seen empty shelves in your local supermarket: In 2022, food shortages are still a problem. President Biden warned of food shortages as a result of Russia’s invasion of Ukraine on March 24, 2022. Food shortages will be “real,” he predicted.
What kinds of things may I get before inflation?
Most of us who read BHM agree that debt-free living is possible, but we are concerned about inflation. The term “inflation” refers to a general increase in prices. If costs continue to grow and you make no effort to manage your finances or reduce your spending, you will only be able to maintain your current quality of living or incur more debt. A small increase in prices over time implies the dollar buys less and it costs more to maintain the existing quality of living. Living debt-free allows you to have complete control over the money you earn, save, and spend.
Did you know that a 3% annual increase in inflation over a 14-year period results in a 50% increase in prices? This may not seem like much until you consider how much more you’ll spend for your home, car, monthly food bill, and big appliances if you pay 50% more. Cutting back on expenses, spending money wisely, having little or no debt, and learning how to save in many areas can be a pleasant, rather than a frightening, way of life.
Bread was 69 cents a loaf in the 1970s. Today, you can walk into any store and find loaves of bread that cost more than two dollars and as much as three dollars on the shelf. This is the result of inflation. Bread is still available for 69 cents, but you must know where to look for it.
Major bakeries run bread thrift stores across the country. The bakery returns day-old bread from the grocer’s shelves and sells it to the public through various outlets. Bread and bread goods such as croutons, pies, and doughnuts that were picked up in the markets when the bread guy made his delivery can be found here. These shops sell cookies, rolls, pies, cakes, and other snacks in addition to bread. Weekly specials include a free loaf of bread with the purchase of three loaves, as well as half-price Tuesdays. A bakery outlet like this sells its items for less than half the price they would have sold for on a store shelf.
When inflation reaches the grocery store shelves, frozen and canned vegetable costs climb. However, while inflation affects the vegetable processing business, it has no bearing on what you buy fresh or cultivate yourself. A savvy consumer would always look for alternatives to overpriced items. Find out where the best deals are in the supermarket and what’s in season.
Make it a habit to browse around. When a particular item is required in the home, a comparison shopper knows where to look for the best deals, so that’s where you go to save money.
While shopping for necessities, comparison shopping can be done. Let’s say you’re looking for a pair of jeans and make many trips at a mall to find the best offer. As you move through the stores, take notice of the pricing of other things, such as shirts or blouses, that are exhibited alongside the pants, and compare them to the costs in other stores. The usual retail price, not the sale price. Also, look through the clearance racks to see where the finest bargains can be located, so that when you need a shirt or blouse in the future, you may go back to the lowest-priced stores.
This is also true when it comes to grocery shopping. Sometimes a store will have decent prices on quality meats and dairy products but frozen items and produce are cheaper simply across the street. Shop with this in mind. Purchase your meat and dairy items in one supermarket, then cross the street to get frozen meals and produce in another.
There are also discount stores that sell broken freight, dented cans, and discontinued items. Find out where these can be found in your area and go there first. Then, with a list in hand, go shopping at ordinary stores.
When purchasing dented cans, be sure there is no bulge in the can. A dent or two is acceptable in a can, but if the can bulges on the top or bottom, or if there is any leaking, avoid it like the plague. This is a sign that something has gone bad. You should also inspect your home canned produce for this warning sign on a regular basis. Food from a container with a bulged lid or a popped seal should not be consumed.
Spend less money by shopping less often. You may significantly reduce your grocery price by switching from weekly to monthly grocery shopping. Sticking to a list will help you get in and out of the store for the least amount of money. You’ll need to keep a supply of staples on hand to do this. Flour, grains, spices, sugar, coffee, tea, macaroni, beans, and other pantry items are all essentials. You may stock up on these things while they’re on sale since you know you’ll use them, and they’ll last for months. To store your supplies, create a large pantry or storage room.
Even if you don’t intend to use any of the products, they will come in helpful if you run out of another. If you keep a package of powdered milk on hand, you can use it in cooking instead of going to the store when you run out of fresh milk.
Never go shopping without a list, and then only buy the goods on it. This is especially important if you find yourself needing to visit a store in between your regular shopping trips. This will save time, gasoline, and money in addition to reducing the number of trips to the store.
The majority of new apparel is pricey because the manufacturer recognizes that buying has evolved into a form of entertainment for the average shopper, that the public is fashion savvy, and that few people purchase with cash. However, these same manufacturers have returned or defective items that they can’t sell in a traditional retail store. This item is delivered to a discount store, where it is sold to the general public at a fraction of the wholesale price. If you look through the racks at these stores, you will eventually find the right size and color. These outlets also sell household items, and because of the quality difference, I prefer to shop at an outlet rather than a nearby store that sells imports. Ross, Name Brand Clothing, and Burlington Coat Factory are among national retailers.
Don’t use your credit card to shop. Because purchasing with a credit card provides quick gratification, the ordinary shopper never considers how much they are spending or how much interest will add to the total cost. Both the manufacturer and the shop owner rely on you bringing your credit card into the store, and they know that if a designer changes the fashion tomorrow, the customer will be there to buy it. Because it takes seven years for a style to become outdated, there’s no need to rush into buying it; with proper care, your clothes should survive for many years, with the exception of growing children.
Thrift and bargain stores carry both current and vintage fashions. The issue here is locating the size or color that you desire. It’s important to remember that buying new clothing doesn’t make sense because clothing is worn once it’s washed. Many thrift stores also function as consignment shops, accepting designer clothing that is resold for a fraction of its original price. Look for these resale shops in your neighborhood and spend some time looking over the racks.
Yard sales
Yard sales are another way to save money. When you shop at these local sales, dressing youngsters is a lot of fun. Try driving to a big city and yard-saling for the day. You’ll be surprised at how much money you save and how much items you find. You can have a picnic at the park if you bring your own food. Yard sales provide a wide range of items, including tools, furniture, toys and games, dishes, bedding, appliances, laptops, sound equipment, and apparel.
The homeowner’s children usually have a huge selection of outgrown apparel. Just keep an eye out for stains and spots. Seam rips can be repaired, allowing you to acquire the item for a lesser price. Don’t be afraid to ask the homeowner to accept a lower price than the one listed on the garment; after all, yard sales are supposed to be enjoyable, and haggling over price is part of that.
The best selection of things at the best prices can be found in middle-income neighborhoods. Items in high-income areas are occasionally overpriced, but the quality is higher. Remember, we’re here to save money, not to buy things at full price. Because many high-income households exclusively buy at the most expensive stores, they are unaware that the identical items may be found for less if they shop elsewhere.
Don’t forget to go through the classified ads. What you’re looking for is frequently advertised in the newspaper or on the Internet.
Look through the clearance racks. Merchants use clearance sales to get rid of surplus inventory, overstocked supplies, out-of-season items, and create place for new shipments. When possible, take advantage of any and all sales on anything you require. The money saved adds up.
Not only should you shop during sales for products you need, but you should also think about what you’ll need in the future when you purchase. Almost all stores, for example, have after-Christmas sales. This is a fantastic opportunity to stock up on products. These don’t have to be saved until next Christmas; they can be stored in a drawer or closet until needed.
You can almost never pay retail if you plan ahead and spend wiselyyou can beat inflation and make your money go further.
What are the most inflated items?
Prices for things like gasoline and airline have skyrocketed in the last year, owing in part to a lack of demand during the start of the pandemic (used cars and trucks, for example, saw a 41.2 percent price increase from February 2021 to February 2022).
Prices are rising across the board, with little variation between regions. According to the CPI report, prices in the South increased by 8.4 percent year over year, with the Midwest following closely behind with a rise of 8%.
How can I plan for inflation in 2022?
During inflationary periods, stocks are often a safe refuge. This is because stocks have typically produced total returns that have outperformed inflation. And certain stocks outperform others when it comes to combating inflation. Many recommended lists for 2022 include small-cap, dividend growth, consumer products, financial, energy, and emerging markets stocks. Industries that are recovering from the pandemic, such as tourism, leisure, and hospitality, are also receiving a thumbs up.
Another tried-and-true inflation hedge is real estate. For the year 2022, residential real estate is considered as a safe haven. Building supplies and home construction are likewise being advocated as inflation-busters. REITs, or publicly traded organizations that own real estate or mortgages, provide a means to invest in real estate without actually purchasing properties.
Commodity investments could be one of the most effective inflation hedges. Agriculture products and raw resources can be exchanged like securities. Gold, oil, natural gas, grain, meat, and coffee are just a few of the commodities that traders buy and sell. Using futures contracts and exchange-traded funds, investors can allocate a portion of their portfolios towards commodities.
During inflationary periods, bonds are often unpopular investments since the return does not keep pace with the loss of purchasing power. Treasury inflation-protected securities are a common exception (TIPS). As the CPI rises, the value of these government-backed bonds rises, removing the danger of inflation.
TIPS prices rose dramatically in tandem with inflation expectations in 2021. To put it another way, these inflation hedges are no longer as appealing as they were a year ago. Savings bonds, which the US Treasury offers directly to investors, are attracting some inflation-avoiders.