ATLANTA, Ga. (CBS46) – US inflation just hit its highest rate in four decades.
The Bureau of Labor Statistics reported Wednesday that consumer prices jumped 9.1% last month. This is the highest rate the country has seen since 1981, and it is also higher than the 8.8% that economists predicted.
And now that financial pressure is only getting worse.
“Right before the pandemic happened, I was really advising people to go ahead and do other things to create extra income,” said Sean Harris, an entrepreneur. “No matter how much you earn, I always recommend looking at your spending habits first.”
Harris says it’s time to take a hard look at the household budget, which means don’t buy what you don’t need, and for the things you do need, buy in bulk.
“Another thing I would recommend is to look at your skills. So many times we have valuable skills where we are professionals, where we can take it and turn it into an e-book, for example, we can take it into counseling or tutoring service,” Harris said.
He says that once you generate additional income by monetizing your skills, it’s especially important to retain that income and grow it through investments.
However, he also cautions against common mistakes made during times of financial uncertainty.
“The biggest mistake people make is rushing in, panicking. It’s like, ‘Hey, the gas is going up, let’s fill it up when the price goes down.’ And I think we have to think straight because if you’re driving across town, to save five cents on gas, you’re not saving,” Harris said.
He also advises parents to talk very openly with children about money and budgets. He allows his children to accompany him to business meetings so that they can also better understand how to manage their finances.
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