6 Smart Strategies to Beat Inflation When Living Paycheck to Paycheck

6 Smart Strategies to Beat Inflation When Living Paycheck to Paycheck

Investments| Payroll| Lifestyle
February 10, 2023•2 min read

Published Date: February 10, 2023

Published By: Jac Cantos, Upcloud Accounting

Inflation is hitting everyone hard, but especially those living paycheck to paycheck. Feeling the financial squeeze? You're not alone. Upcloud Accounting is here to help you navigate these challenging times with practical strategies that can make a real difference.

1. Simplify Your Spending Plan

Forget complicated budgeting apps. Start with a simple approach like the 70/20/10 rule:

  • 70%: Essentials (housing, food, utilities)

  • 20%: Debt repayment (credit cards, loans)

  • 10%: Savings and investments (if possible)

Adjust these percentages to fit your needs. The key is to gain a clear picture of your spending and identify areas for potential savings.

2. Optimize Your Tax Withholding

Aim for a lower tax refund. A tax refund means you've overpaid throughout the year. Adjust your W-4 withholding to receive more money in your paycheck each month. Upcloud Accounting can assist you in calculating the optimal withholding amount to ensure you're not overpaying.

3. Cut Unnecessary Subscriptions

Monthly subscription fees add up quickly. Review your subscriptions (streaming services, software, etc.) and eliminate any you don't regularly use. Consider cheaper alternatives or sharing subscriptions with others.

4. Sell Unused Items

Declutter your home and turn unused items into cash. Online marketplaces offer a convenient way to sell unwanted goods. Remember, profits from selling personal items are considered capital gains and should be reported to the IRS. Upcloud Accounting can help you understand the tax implications.

5. Review Your Spending Habits

Analyze your spending patterns. Are there areas where you can cut back? Consider:

  • Grocery shopping: Buy generic brands, reduce meat consumption (if prices are high), and plan meals to minimize food waste.

  • Utility bills: Reduce energy consumption (unplug electronics, use energy-efficient appliances, etc.).

Small changes can accumulate significant savings over time.

6. Open a High-Yield Savings Account

Even small amounts saved in a high-yield savings account can grow faster than in a traditional account. The higher interest rate can make a significant difference over time, building your emergency fund and providing a safety net.

Upcloud Accounting: Virtual Outsourced Accounting and Bookkeeping Services in the Philippines

Upcloud Accounting offers accounting, bookkeeping, tax compliance, and business licensing services specializing with startups and SMEs in the Philippines.

Our goal is to increase efficiency, automation, and transparency across the accounting and finance functions of our clients with our cutting-edge technology. If you want to move your company’s finance function online, contact our Team of Expert Accountants and Bookkeepers directly via [email protected] or visit www.upcloudaccounting.com to learn more about how Upcloud Accounting accounting services can support your PH business!

Disclaimer: This article or blog is only for general knowledge and guidance and is not a substitute for an expert opinion. For technical advice, please consult your tax / legal advisor for your specific business concerns. For comments, suggestions, and feedback, feel free to email us at [email protected].

Back to Blog