Did you notice that your money still isn't stretching as far as it used to? Your observation is indeed correct.

Inflation reached a 40-year high in the United States in 2022 and we are still feeling the effects in October 2023. The year-to-date inflation rate in the United States was 5.9% through August 2023. That's almost double what inflation averages historically.

The Federal Reserve Bank of St. Louis published a detailed breakdown of inflation rates for different categories of goods and services. According to the St. Louis Fed, the highest year-over-year inflation rates in August 2023 were for:

Energy: 15.2%
Food: 10.9%
Shelter: 6.2%
Transportation: 5.9%
Medical care: 4.2%

To navigate these challenging financial times, consider implementing the following practical steps to make your money go further:

Assess your current spending habits: Gain insight into where your money is currently going to identify areas where adjustments can be made and track your progress over time.
Cut unnecessary expenses and increase income: Reduce your spending to increase the amount of money you have available. Generating extra income may seem like a challenging feat, but consider the things you are good at and create a plan to get paid doing those things. Consider selling items that no longer serve you.
Develop a workable spending plan: Create a financial roadmap to help you achieve your financial goals.
Stay adaptable: Life is unpredictable; when unexpected events occur, take a moment to analyze the situation and make necessary adjustments to your financial goals or spending plan.
Be kind to yourself: We often struggle to forgive ourselves for financial missteps. Remember that managing your finances is a journey. Forgive yourself and commit to improvement based on newfound knowledge.

Managing your money is an ongoing journey with various stages throughout your life. By empowering yourself with knowledge, you've taken a crucial step. Now, take action and prioritize your financial well-being.