Property Finance

4 money saving tips to fight inflation in 2023

Nomo Bank

25 Jan 2023

With inflation hitting the headlines at the moment, you may be looking for every opportunity to protect your wealth against inflation and save every penny you can!

Here are four money-saving tips to help fight back against inflation by saving and growing your wealth…

Cut your everyday costs

It may sound obvious, but one way of saving money during times of inflation is by spending less! It doesn’t take much to start saving, and even little changes can add up to make a big difference.

Examples of small ways you can cut your daily costs include taking public transport instead of getting a taxi, cooking at home rather than eating out, or shopping around for a better deal on your phone contract.

Diversify your portfolio

Holding money in cash can be useful if you’re saving up for purchases in the near future – but if you have money sitting in the bank, then high inflation rates can erode its value.

Diversifying your wealth by holding and investing money in different assets can help to maintain the purchasing power of your money in the long term, as different assets may not react in the same way to others in times of inflation. For example, gold is generally seen as a safe bet in times of inflation.

Increasing your international exposure across different currencies and international investments can also be a good strategy to hedge against inflation, as not all currencies and markets rise and fall in the same pattern.

Going abroad? Plan before you travel

Going on holiday is the perfect time to unwind and spend special time with your loved ones, but you might find that your flights and hotel are a little higher this year because of inflation.

However, by planning ahead, you can help to save some money. Booking hotels through price comparison sites like Trivago can help you get cheaper deals, and you can find discounted activities by checking out platforms such as Groupon.

Making sure you’re using a local payment method can help too, as you can avoid high fees for using your regular card abroad. International spending with Nomo is fee-free, so make sure you pack your Nomo debit card or set up Apple Pay before you board your flight.

Earn money on your savings

Got money sitting in your current account that’s losing value because of inflation? Why not grow this wealth in a savings account with attractive profit rates? A Fixed Term Deposit account lets you grow your wealth over a set period of time, at an established profit rate.

With an FTD from Nomo, you can save in either GBP or USD, with profit rates of up to 4.6% (as of 2/11/22). You can choose between putting your wealth away for 3, 6 or 12 months – then sit back, relax and watch it grow!