Impact Of Inflation On Utahns’ Budgets

SALT LAKE CITY — When it comes to your family’s budget you think of things like income and expenses — taxes and that next pay raise.

What about inflation, which can have a huge impact on your cash flow?

“Inflation has grown at its fastest pace in more than 12 years,” said Michael Stevens with Capital Wealth Advisors in Salt Lake City.

We haven’t seen inflation this bad since 2008 – September of that year to be exact was the last time we saw a rate above 4%.

Last month he hit 4%, which is a spike from the last five-year average of less than half.

But Stevens believes it’s a direct response to the fast start after the economic standstill borught on by the pandemic.

Some advice for dealing with the seemingly sudden spike in the price of goods and services?

“Look at the end in mind and reverse backward and say, ‘Alright, what do I need for inflation? What do I need for a guaranteed paycheck?’ and that’s how you’ll have peace of mind and clarity,” Stevens said.

As inflation hits our bottom line, the best plan is to stay the course.

Keep investing in the stock market and your retirement account, don’t buy all of the wants in your life and try to stick to the needs right now.

Try to take as much of the stimulus money and save three to six months’ worth of income for that inevitable rainy day.

And revisit your short- and long-term goals.