Record gas prices and skyrocketing inflation are stretching paychecks thinner for many in the Bay Area.
With the average gas price ranging from $5.79 in Solano County to $5.98 in San Francisco plus inflation at nearly 8%, Bay Area residents are spending more without receiving more.
Sam Gaeta, a certified financial planner in Alameda, says he has many clients who have seen their bills for groceries and gas go through the roof.
Here’s what Gaeta recommends to help cope with rising costs:
- Don’t dip into retirement or emergency savings or go further into debt to cope with inflation.
- Calculate your “personal inflation rate”: Compare your bank and credit card statements from last year to the past three months then look at where your spending has increased most.
- Focus on needs rather than wants.
“And that has been a huge benefit because then we can look at potentially cutting back some discretionary spending where inflation is high and reallocate that money to places where it’s the most necessary,” Gaeta says.
Gaeta also advises to those who are able having 3-6 months of living expenses saved up and try to save about 15% from each paycheck.
Source: NBC Bay Area
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