I talk a great deal about building your Money House as a shelter for economic storms. Inflation is one of those storms.
It seems to be one of those storms that comes without much, if any, warning. The winds can shake your Money House and encourage you to second-guess the foundation it sits on. It can be a scary and worrisome time.
However, it is for these times that you have built your Money House in the first place. So, you can also see this as an opportunity to test your Money House's strength and resilience. How will it hold up?
Inflation brings higher prices for just about everything. Food, gas, even your Amazon purchases. During a storm such as this, I encourage you to take time to shelter in your Money House (review your budget) and see if your walls can withstand the winds (see if you have enough money allocated to your necessities even with rising prices.)
Spending time looking at your budget can help you see where any cracks are truly starting to form. Did you build your wall(s) initially with out considering expanding them? Perhaps you will need to sacrifice some areas of life, for a time, to shore up the necessary items and ensure your survival. Take the time to fix any structural issues (budget limits are too low).
Doing this process gives you two benefits.
You see your Money House's weaknesses, thus can improve them.
You are removed from the storm, allowing you to focus your energies on proactive action rather than reactive fear.
Finally, this helps you intentionally take refuge in your Money House during times of uncertainty. Building this habit will serve you well in dealing with the next economic storm that comes our way.
Timely. Thanks Todd.