If you’ve noticed that prices at the grocery store and gas station are rising, you’re not alone! And it’s not just food and gas prices that are rising. If you’ve considered buying a car, you know it’s true. There has been a lot of talk lately about price increases due to the pandemic and inflation. As a consumer, we may not always know exactly what’s causing the price increases, but one thing we do know is how it’s impacting our wallet!

According to a recent report from the BBC, consumer prices in the U.S. rose 4.2% during the 12 months ending in April. That was the biggest increase since September 2008. Higher prices for cars and food drove much of the increase.

Whether price increases are related to the pandemic or inflation, how you manage your budget to allow for these increases can either work against you or work to your advantage. It’s all about how you budget. Here are some tips to help you manage better and stay ahead:

Allocate more for food and gas. Take a look at your monthly food and gas bills and compare them to bills from a year ago, then calculate the percentage increase. That will give you a place to start. Then, you’ll know about how much more you need to allocate to your food and gas budget each month. You may even be able to find way to cut some expenses by choosing different grocery stores and gas stations, carpooling or cutting down on pricier items like snack food.

Eliminate unnecessary expenses. Consider cutting back on items that aren’t absolutely necessary. We all need a little fun money, but if you’re honest with yourself, there are probably a few things you can eliminate that wouldn’t cause too much pain. You could drink fewer sodas or make your coffee at home and skip the coffee shop each morning. And eating out fewer times a week can really make an impact on your budget!

Budget more for debt payments. Inflation can be either good or bad when it comes to debt, according to USA Today. On the upside, you can repay your debt with money that’s worth less than the money you borrowed. But on the downside, you might see rising interest rates on variable-rate credit cards. In this case, you’ll need to set aside more for debt reduction than you have before.

Set aside money for your emergency fund. During the pandemic, you may have had to use your emergency savings just to get by. If that’s the case, you will need to budget more money for savings than you might have before, and because of rising inflation, you might also need a bigger emergency fund than you needed in years past.

Build your savings with stocks. According to Forbes, budgeting for stock market investments is one way to beat inflation. The broader stock markets tend to rise over the long term, even during periods of high inflation, making stocks a comparatively safe place to put your money. But make sure you check with a financial adviser and get all the facts before you dip your toe into the market.

These are just a few ways you can manage during inflation, and even come out ahead! And when you think about investing and saving for the future, make sure you consider your Transocean U.S. Savings Plan to help you grow your savings. Transocean matches 200% on up to 5% of eligible compensation you contribute, so don’t leave money on the table. You can save for today and still plan for tomorrow!

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