Here’s how Hamiltonians can be smart about money amid high inflation

The cost of living is through the roof, and even some Hamiltonians with decent incomes are finding it hard to get by.

Inflation rose to a 39-year high at 8.1 per cent in June. While the dramatic surge continues, wages aren't keeping pace, making daily life more unaffordable for many individuals.

Savings, amid all of this, might seem like a far-off dream.

Experts believe a single solution won't help you save, but a combination of small steps might.

The idea is not to disrupt your day-to-day life ... but to get you to be more mindful of your spending," said Marvin Ryder, a marketing professor at McMaster University.

The Spectator spoke to four experts and a Hamilton household about how to make ends meet and save during high inflation.

Knowing your deals

Bailey Plouffe, a stay-at-home mom to a two-year-old, said she takes advantage of PC Optimum points, a customer rewards program that can really amount to a lot if you pay attention." She also tracks items that go on sale every few weeks, and price matches at No Frills.

I was scoping to buy meat next Thursday because it will be marked down by half. It's leftover from the last week's sale," she said. Plouffe then freezes the meals for the future.

She said the family of three goes meatless twice a week to cut down on expensive meals, and they go on a free date night" to a restaurant every two months that accepts Scotiabank Scene points.

Plouffe said she buys gas only at night" from a Husky gas station, noting they drop their prices at night, or uses Optimum points at Esso for discounts.

Having a single household car also helps reduce expenses.

Plouffe noted she looks out for Facebook Marketplace deals for diapers, wipes and baby formula for her son.

Reduce credit card use

Ryder of McMaster suggested three tips: Don't use your credit card for all your purchases; look at your habitual spending, and ask yourself if you could delay buying that item.

He suggested paying by cash or using a debit card for small purchases so you're aware of how much money you have in your pocket. Putting it on credit satisfies your demand this minute, then the bill (comes) and you go, Oh my gosh, how am I gonna pay my credit card bill?'" he said.

Using credit points wherever possible also helps. Ryder shared he collects Air Miles, and uses them for his purchases.

The second tip is to break the cycle of habitual spending, like buying clothes, coffees, or snacks, which compounds to larger amounts of money spent over time. That couple of dollars doesn't seem like very much, but if you do it every single day, it adds up to hundreds of dollars," he said.

Lastly, ask yourself, do you have to buy that today?'" Ryder said. He noted the Bank of Canada is not trying to stop you from buying a cup of coffee, but to get you to think about your need for a new car, or an addition in your house."

He noted inflation is going to come down" in a few months, and big expenses should be held off.

Track your expenses

Danielle Scott, a Hamilton credit counsellor with the Credit Counselling Society, suggested realistically tracking expenses and income. It will be easy to find holes in your pocket," she said.

Some of her tips include having a budget for expenses - groceries, shopping, subscriptions, gas - and sticking to it. Planning ahead for meals, and not bulk-buying would also help you have money in your pocket instead of items sitting in the pantry.

Thinking about feelings" while shopping also affects what you're buying, Scott said. Keep your emotions out, if possible.

Creating a budget gives you a decent plan," she said, whether it's for personal care like haircuts, grooming, makeup or general shopping urges.

Call your bank

Zandile Chiwanza, a Toronto-based journalist who reports on personal finances and financial wellness, said the first step is to take a step back and look at inflation as something that is out of your control," and steer your focus to things that can be controlled.

Look at your income and your expenses, and scrutinize where you can cut," she said.

For bigger expenses, Chiwanza said, Call your lender and ask for different rates. It's not a fixed rate."

She noted that she negotiated a lower interest rate with her bank for her credit line, adding, don't be afraid to reach out to your bank."

Chiwanza's tip was also to put aside as little as $10 every paycheque to build a habit, and check out social media challenges for saving money.

Grow your own, be rational with food

Atif Kubursi, an economics professor at McMaster, noted three strategies to save - look out for items that are costly, and lower your consumption - for example, gas. Find a substitute for that item, and grow your fruits and vegetables, if possible.

Economizing doesn't mean you have to cut a food item, but within the food group, finding an alternative with similar nutrition for a lower price," Kubursi said.

Ritika Dubey is a reporter at The Spectator. rdubey@thespec.com