Date: March 15, 2022
4 Tips to Beat Inflation
Inflation has reached a new 40 year high as of February this year (consumer prices are up 7.9% from just a year ago). With increases is gas, food, housing, and natural gas, people are feeling the effects in their bank accounts. Many small business owners anticipate an increase in their prices soon, just to stay afloat. While we all hope there is not a recession on the horizon, this raises a good question – what can you do now as a business owner to combat inflation?
1. Gas prices – a big concern for everyone right now! Why not receive a percentage back of what you spend? Getting a credit card that offers cashback rewards will help put money back in your pocket. You could also get a gas station credit card, just make sure to review the program and find the best fit for you. Another great option is to pay for club membership – such as Costco, Sam’s club, etc. – as they offer their members discounted gas prices and as a plus, it can save on your grocery shopping. What you’ll save is well worth the membership fee in the long run.
2. Invest in stocks, specifically in companies that can increase their prices naturally during times of inflation – for example, oil, beef, and natural gas. The demand for these staples means that even when prices go up, people still buy the same amount as they are necessities. Read more on investing here.
3. Invest in your business, so that you can grow and increase your profits. This will help you prepare for the future. One of the best ways to do so is by having a virtual CFO. They will ease feelings of being overwhelmed with the financial side of running your business, especially in times of inflation where the stress is felt on a greater level. They will help you answer important questions like if you are pricing your services correctly, how profitable you are, and what steps to take to grow your business. It will take the guesswork out of these questions, and you will have a competent professional on your side to help. It’s a win-win!
4. Have a tax plan in place. What does that entail? Essentially, your current financial position is analyzed by a professional and then a customized plan is put in place to help reduce or eliminate your tax bill. It helps you put money back into your pocket legally, instead of overpaying in taxes. It’s a proactive solution that will help you invest in your business and future.
Times of high inflation put stress on everyone, but there are solutions, sometimes a creative perspective is what is needed. It is always in your benefit to plan ahead. If you don’t have a tax plan in place, or you are searching for a Virtual CFO, we are here to help you. Click here to schedule a call with one of our tax strategists to see how you can start saving money.