🎈Did the U.S. Beat Inflation?🎈
Why we feel like inflation is eating into us and how to take advantage of it
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Inflation News
Let’s imagine it’s your little cousin’s birthday and you’re throwing them a birthday party. You’re tasked with inflating the balloons for the party using a helium tank. As you attach the balloon, you release the valve and inflate the balloon at a steady pace. Then, let’s say the valve breaks and the balloon swells suddenly. Panicking, you figure out the issue with the tank and resume the moderate pace of inflating the balloon. We’re in a similar situation today.
There have been plenty of metrics over the past week on the success of the U.S. government in lowering inflation to a satisfactory rate. But what does that mean?
From the graph above you can see that inflation peaked in June 2022 with a rate of 9.1% which eventually decreased to nearly 3% as we head into the first few months of 2024.
Economists report that we’re entering a period coined disinflation due to prices not rising as fast as they previously were last year. We’re close to our annual target.
The Fed aims for 2% annual inflation
Inflation Updates by Sector
Travel
Remember when you had to skip that nice vacation last year because flight prices were too high? Well, we’re seeing a return to the mean more recently as travel prices continue to decrease into 2024.
Used Cars
Last year was a big year to try to sell your car. We heard about used cars appreciating which is a rare sight. It’s a common fact that your used car will always depreciate. That’s over now and cars are back on their depreciating journey.
Housing
Not a day goes by when I can’t look at the housing market. As I keep an eye open for my future dream home on Zillow, the housing market continues to stay inflated. There are a variety of reasons for this with one of the biggest being the issue of supply and demand at this point in time.
How to Take Advantage of the Situation
We’re returning to the norm in 2024. We’ve seen the stock rally early this year, but the way is paved with uncertainty as we head into this election year. The economic sphere is not functioning properly with wars and attacks on the Red Sea most recently, but we’re making it work! Back home, here’s what you can do:
Open a HYSA
This time continues to be a time to save when the Federal Reserve is hesitant to lower interest rates. It’s time to open up the High Yield Savings Account if you haven’t already and take advantage of these rates.
2024 is your year of the side gig
Now is a great time to not start that business with debt but to pick up extra cash by any means necessary. We’re talking Ubering, selling your items, and creating a course.
By picking up this extra cash, you’ll be taking advantage of point number one here. At this point, we’re going to be the savers this year and return to the scene with capital once the time is right. For now, we wait.
Have a great week,
Jordan