If you have noticed that the overall cost of living has increased recently, you’re not alone. Inflation has been all over the headlines and is being blamed for everything from higher gas prices to more expensive milk, meat, and medication.
Equally as talked about is the U.S. government’s new Inflation Reduction Act. While broad in scope, the Inflation Reduction Act is designed to provide relief to millions of Americans. Let’s break down what it’s all about.
What exactly is the Inflation Reduction Act?
The Inflation Reduction Act is a law that, among other things, will help make health care and prescription medications cheaper for the average person.
A big benefit is for health plans on the Affordable Care Marketplace: The Inflation Reduction Act has increased subsidies for middle-income people who were previously unable to afford the health plans. The US Government estimates that the act will save the average enrollee $800 per year.
One of the most talked about effects of the law is that insulin copays will now be capped at $35/month, and, starting in 2024, annual out-of-pocket healthcare expenses will be capped at $4,000 for drugs on Medicare Part D — even better, the cap will lower to $2,000 in 2025.
The Inflation Reduction Act also makes incentives for clean energy, climate change and local manufacturing that will hopefully result in high-paying jobs for millions of people. Don’t expect to see an instant boom, these changes can take years before their impact is felt.
While the act isn’t a magical cure for all our inflation woes, it’s a vital step forward to providing relief. In the meantime, we’ve curated some easy tips to help you fight inflation today.
What can I do in the meantime?
Long-term solutions for the economy are great, but what if you need some relief sooner? Here are some simple ways to save on everyday expenses.
Food & Groceries
Make a grocery list and stick to it. This will help you keep track of your expenses and avoid unnecessary purchases. Also, using promotional coupons for your groceries is a great way to save on your everyday items. Pick up the Sunday newspaper and search for inserts that are packed with special offers, but be wary of promotions like Buy One, Get One Half Off that encourage you to buy more than you need.
Gas
While gas prices have come down in recent months, they’re still high enough to put some serious strain on the family budget. Thankfully, we’ve already assembled the easiest tips to finding the cheapest gas. Check them out here.
Phone and Internet Services
Internet and phone services have been upping their charges recently. Internet fees have risen over 1.4%, and phone services have gone up over 3% in the last year. In order to save some money, check if your household is eligible for the Affordable Connectivity Act, an initiative from the federal government that helps people get internet access cheaper and, sometimes, even free!
As you can see, there is a bit of a light at the end of the tunnel, but you also have to keep your eyes open for opportunities to save some money and get the best value for your hard-earned dollars. Staying informed is a great way to keep your finances healthy, and Pangea’s experts are always here to help.
In the end, common sense goes a long way when it comes to protecting your bank balance. A little vigilance and self-control can go a long way. And if you ever need simple budgeting tips or small hacks to save you money, The Exchange Blog experts here at Pangea always have you covered.
