Navigating the Inflation Zone

Photo by RODNAE Productions on

Don’t be considered a pawn in this game of financial chess.

All you hear at every turn is the cost of everything going up. The corporations are blaming a shortage of chips to do it, a shortage of chicken to do it, a shortage of workers to do it, and the list goes on. Let me ask you a question. Why are the items that are readily available going up in price too? Supply and demand is the response they will say. Who are they and how do they know?

This is where the navigation lesson starts. Stop waiting on them or they to be your guide in this mess called the Inflation Zone. What is the Inflation Zone? The Inflation Zone is all of the areas that are being heavily affected by pricing hikes. You may be like give me an example. Sure, here you go: grocery stores, restaurants, retail stores, car dealerships, hotels, airports, lumber yards, real estate, college campuses, hospitals, law offices, and I can go on and on. These are the places where now you can expect to pay way more than you initially planned and even expect more of the price hikes to come.

Photo by Oleg Magni on

Inflation Zone where you are seeing the effects of your money not going as far as it should. Smaller portions for higher prices.

Now, that I have identified where the Inflation Zones exist; so, how do you avoid them? The first thing that you are going to have to do is create a budget. How is a budget going to help you avoid those Inflation Zones? Setting a limit of what you are willing and unwilling to pay. Know you breaking point and steer clear of it. A budget will keep your finances in order. They, the secret group of people speculating about the shortages and why they must raise prices, are creating new financial products to ensnare people like you and I. You may have already heard of Buy Now, Pay Later. If you haven’t, listen to this and pay close attention.

Buy Now, Pay Later is a payment system that several businesses are implementing as a means of offering affordability when affordability is not an available option. These business are allowing for you buy a product or products and finance them over installment payments. They are planning to entice you by offering no fee or no interest installment payments for the term of your agreement. No credit is needed by some of these businesses. Let me provide you with an example. You are shopping for a pair of shoes on your favorite online store’s website. You see a pair that you love, but the price is more than you are able to pay or should pay as a result of being in an Inflation Zone. Those shoes are $100 for the sake of this scenario. Instead of having to shell out the $100 and additional fees like shipping and sales taxes, you can now split your $100 payment into a set amount of installments. Depending on the total of the purchase, it can be 4 payments or more.

Photo by RODNAE Productions on

Photo by RODNAE Productions on

Are stores making it easier to purchase or be obligated to keep paying them more money and for longer periods of time? Is Buy Now, Pay Later the next generation of loyalty program?

This is beginning to be the new norm with financing items that should not be financed. Businesses will now prey on those who truly cannot afford to make certain purchases. Whether those purchases are for household essentials, school supplies for children, or the upcoming Christmas holiday season, consumers are going to be rung through the ringer with the predatory lending practices. Private financial companies, banks, and others entities are coming out of the woodworks with these financial products looking to further prop up their bottom line. I understand that these products are able to help someone in a financial hardship, but what about those individuals who are not financially savvy or honestly financially uneducated. This thing can be as dangerous as a Payday Loan without the enormous interest rates and fees. I believe they will offer an introductory no fee period and then gradually lock in those individuals in while gradually adding on the fees and interest.

Photo by Karolina Grabowska on

Photo by Karolina Grabowska on

Set up your financial boundaries by creating a budget. Know what you are able to afford without going into debt unnecessarily.

This is why creating and using a budget is vital. You must know what you can and cannot afford during these times. We are entering a time where it is imperative to be financially savvy. As prices continue to rise, businesses are going to continue to make their money at our expense. A rule that I follow is if I cannot afford to buy three of an item then I will not buy one. This is an example of setting up boundaries to keep from falling into a debt trap. You are beginning to see retailers of all types offering this Buy Now, Pay Later product or another variation of it. The funny thing is how banks are not keeping cash in the banks. They are making it extremely difficult to borrow. So now, they want to make it appear like they are our best friend with offering us the ability to make installment payments on items that should be affordable enough to purchase without making payments. If consumers fall head first into this scheme, this will only give more businesses license to continue to raise prices. They will come to expect consumers to pay for it over time as the new norm.

We, the consumer, must take a stand now and know what we are willing or unwilling to do or buy with our hard earned money. Do your homework before enrolling into these predatory agreements. Explore other alternatives like saving up for purchases, comparison price shopping, clipping coupons, joining real reward or loyalty programs, and buying used items. There are always alternative ways to get the things that you need without falling into a debt trap. Establish your boundary today to prevent an Inflation Zone from being created in your backyard.

Thank you for reading my blog. Preparation With Purpose shares ideas and solutions designed to help people make informed decisions and understand that there are always options available. Follow us on social media and subscribe to receive our future blog posts. Please leave a comment or you can contact me, Anthony Ray, at . Visit to view other blog posts.

#Budgeting #BuynowPayLater #Inflation #InflationZone

2 views0 comments

Recent Posts

See All