Surviving Inflation and High Mortgage Rates: Tips That Will Help You Thrive

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Inflation has led to so many price hikes in nearly every industry. Survival on the same income might be impossible if you are already living paycheck-to-paycheck. Financial education can be so important as some head for financial ruin during these times. The stock and crypto markets going down have also diminished recently. The drop has reduced the ability of some to leverage their once-flourishing investments. Thriving or earning extra during this time can be essential for future success. Simply relying on what you have might not be enough and can lead to debt quite quickly. Below will delve into ways to survive inflation and high mortgage rates if looking to buy.

Remember You Can Refinance After Your Purchase

Interest rates going down massively could be predicted in the coming years. The truth is that for some people, the interest rates are currently too high to purchase a home. Buying a home with cash when downsizing can be an intelligent move as owning a home is a great way to battle inflation. Refinancing a home was extremely popular during the pandemic when rates hit lows that buyers today dream about. Getting a lower interest rate can lead to paying far less monthly as long as your property taxes are stable.

Reverse Mortgages for Retirees

The need for extra cash for retirees cannot be understated for those on a fixed income. Pulling money out of investments can lead to penalties and some do not want to touch their retirement accounts. The stock market has dipped in the last year could mean retirees just have to hold out. The market recovers over time as it skyrocketed for some industries during the pandemic. A reverse mortgage allows an individual to receive a monthly or bulk payment while still residing in the home. A reverse mortgage calculator can allow you to see how much you can earn monthly. The funds can be used to pay other debts or even for home improvement projects. Selling a home and purchasing another is not a great option for those that are retired if they don't plan on purchasing a new home with cash. This requires downsizing or moving to an area with a lower cost of living.

Earn A Bit Extra Freelancing

Freelance work is widely available and requires various skills. You might have copywriting skills which can result in earning consistent income immediately. Skilled writers are needed by marketing companies and brands needing copy for websites, marketing materials, and eBooks. Finding clients does not mean you have to do cold email or phone outreach. Upwork and other platforms help connect clients with freelancers that can help them complete tasks/projects. Clients could be willing to pay a premium to a freelancer rather than bringing a full-time employee on in-house.

Figure Out Where to Save On Groceries

Grocery shopping is literally jaw-dropping when new prices are revealed. The amount that the same carts cost today versus a year ago is almost unbelievable. If you like to eat steak, you might want to skip the ribeye and opt for top chuck. The meat is much less expensive but still has a great flavor that is very similar to ribeye. Opting for foods that are not major brands can also be important. Bulk shopping or using a multitude of coupons can help save money for larger families. Smaller families might want to buy some items in bulk but want to avoid waste, so they avoid buying items like bulk produce.

Renting Out Your Home on Airbnb

Renting out your home or a room in your home on Airbnb can bring in extra income. Those that have in-law suites might want to consider renting this long-term. You want to make sure you read the reviews of potential renters as not all renters respect the property appropriately. If you are lucky enough to live in a popular tourist destination, then there could be extremely busy months. You can charge far more during these times as the demand for rentals will be extremely high. Check a variety of platforms out to see which can provide the most money nightly and the most respectful renters.

Surviving inflation will be difficult if you are tight on money and make no changes to your current lifestyle. The changes do not have to be immense, but it is useful to be financially savvy during this time. Create a plan to save or earn more monthly then put it into action! You want to come out of this time thriving as extra money can be vital. For example, investing in the stock market while it is down can put you in great financial status in the future.