How Michiganders can manage a budget amid record-breaking inflation
LANSING, Mich. (WILX) - From groceries to gasoline, prices are on the rise across the board.
The United Stated Labor Department announced Tuesday inflation hit a 40-year high in March, rising 8.5% from 12 months earlier. It’s the sharpest year-over-year increase since 1981.
- US inflation jumped 8.5% in past year, highest since 1981
- Some Michigan road projects scaled back because of inflation
- USDA forecasting higher food, grocery costs in 2022
- Biden waiving ethanol rule in bid to lower gasoline prices
The price of eggs has nearly tripled from this time last year, while other foods have jumped about 9% in March alone.
As prices go up, the chances are your paycheck hasn’t gone up too.
More and more people are crunching the numbers and trying to figure out how to fit everything they need into their budget. What may have covered your grocery bill in 2021 might not get you half of what’s on your list now.
As people continue to recover from the COVID pandemic and deal with inflation, there’s a new sense of urgency when it comes to budgeting.
“I have a newborn and formula has went up quite a bit,” said Anthony Bell. “I also noticed that a lot of stuff isn’t in stock.”
Bell is trying to support his family amidst the inflation crisis. He’s not alone. Mark King, a financial advisor from Lansing, said a lot of people are adjusting to the increase.
“One thing that happened during the pandemic was that there was a lot of money given out,” King said. “Now that that money is gone, people are seeing the effects of the rebate credits and the child tax credits and that’s what is really affecting the house hold budgets.”
With a higher demand for goods, the prices rise. Even getting to the grocery store is costing a pretty penny. According to AAA, Michiganders spent an average of $2.79 a gallon on gas in April 2021. A year later, people are met with prices that are more than a dollar more.
“When you fill up think about your routing for the week,” King suggests. “Try to plan your trips to the grocery, the laundry -- all your errands along your route to help save gas.”
King also said you should think twice before hitting their favorite burger joint.
“The pandemic has made us a little lazy. We ordered out, we ordered a lot,” King said. “We did Door Dash and we used the convenience of those services. We got to get back to normal living again. That’s what needs to happen.”
Some other advice to plan for the coming months is to add more to your rainy-day fund when you can and cut out monthly memberships or subscriptions that you have, but just don’t use often.
According to a Nielsen survey, 42% of people polled said they are not using a streaming service enough to make the cost worth it.
Related: Gas Prices
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