It’s no secret that inflation has weighed on consumer finances since last summer. But at this point, many people are in desperate need of help – and so are being forced to make tough spending choices. Here are some items consumers are putting off or giving up, according to a recent HomeServe survey.
1. Furniture and household items
A good 52% of respondents said they put off furniture and other items needed for their household due to inflation. Now, the reality is that delaying buying a piece of furniture can be wise when it comes to an unfinished guest bedroom. But if your kitchen table breaks, that’s the kind of purchase that’s harder to put off, so you might want to cut other expenses to make something like this possible.
Meanwhile, 47% of respondents hold back on vacation. Since traveling isn’t a necessity, it’s a smart choice, as it doesn’t make sense to land in credit card debt to visit an island when you can grab a free stay or travel locally in place. And to be clear, it Is pay to take a break, even if all you’re doing is exploring your own city and streaming your favorite series.
These days, new and used cars are very expensive. And therefore unsurprisingly, 37% of respondents postpone the purchase of a vehicle. It’s a smart bet if you don’t need a car right now, because waiting for supply to catch up with demand could mean paying a lot less – and taking out a car loan a lot cheaper.
4. Pet Grooming
There are some pet care items you can’t skimp on, like vet visits and medications. But if money is tight, you might consider grooming your pet yourself rather than outsourcing the task. In fact, 16% of respondents say they are willing to give up pet grooming services due to inflation.
5. Club Membership
You may be looking forward to joining a local golf or pool club. But if money is tight, you might want to think twice. A good 18% of respondents say they are willing to give up these club memberships due to the higher cost of living.
What sacrifices do you have to make?
If you’ve reached the point where you can’t cover all your bills based on your paycheck or can’t make expensive one-time purchases, it might be time to sit down and make some tough choices. . So think about your expenses and decide which might be the easiest to drop or change.
If you have a vacation coming up but have little money to spend, see if you can visit a friend from out of town rather than paying big bucks to stay at a resort. This way you will at least have the opportunity to explore a new place. Likewise, if you have a functional car that isn’t the most comfortable, consider keeping it for another year as long as it works.
We could see many more months of runaway inflation, so adjusting your spending habits and expectations may be a necessary thing to do in the short term. But on the plus side, going this route could be your ticket to avoiding debt, and that’s a very important thing at a time like this.
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