Financial expert’s tips on how to tackle soaring costs as she warns America is in a recession

Americans are contending with soaring prices at grocery stores, gas stations and shopping malls as inflation hits a 41-year high and financial experts warn that the country is already in a recession.

Inflation has skyrocketed in the past year, reaching 8.6 percent in May, the highest it’s been since 1981, hitting many American’s wallets as food costs soar and gas prices top $ 5-a-gallon.

And after a tumultuous end to the second fiscal quarter last week, many are now claiming the US is already in a recession, including financial advisor Dawn Dahlby.

Dahlby, who has been assisting people to manage and invest their wealth for 22 years, said people needed to act now to brace for the coming economic downturn.

Inflation hit 8.6 percent in May 2022, the highest in 41-years, as Americans contend with soaring prices for goods and services amid predictions of a coming recession

Dawn Dahlby, a financial advisor for 22 years, joined other experts in saying a recession is already here and that Americans needed to prepare for the economic downturn

Dawn Dahlby, a financial advisor for 22 years, joined other experts in saying a recession is already here and that Americans needed to prepare for the economic downturn

Dahlby, who launched her Relevé Financial Company more than two decades ago, said the key to getting through the recession is primarily focused on a commitment to change.

She urged Americans to plan out their shopping trips, cut the fat from their outings, and to force themselves to save at the pump.

Dahlby added that although a recession would be rough, American’s should see it as a temporary state rife with the chance to invest and save.

HOW CAN I SAVE ON MY GROCERY BILL?

In the past year, the price of meat and poultry has jumped by 14.2 percent, cereal has gone up 11.6 percent, and the cost of fruits and vegetables rose by 8.2 percent.

A study last month from the U.S. Bureau of Labor Statistics (BLS) found that the average American household spent about $ 411 a month on groceries in 2020.

To contend with rising prices, Dahlby advised people to plan out their trips to the supermarket and avoid going out as often.

‘You need to take a full assessment on what you have and what you need for the month,’ Dahlby said. ‘So many of us buy double or triple what we really need.’

She also suggested shoppers look into their stores loyalty programs to take advantage of money-saving opportunities.

IS THERE ANYWAY TO DEAL WITH THESE GAS PRICES?

As inflation soars, Americans are feeling some of the worst pains in their gas bills after the nation hit a $ 5-per-gallon average last month.

Although prices have gone down a bit, averaging at $ 4.72 on Friday, the West is still contending with high prices, with California leading the way at $ 6.14 a gallon.

Dealing with gas prices can be difficult, Dahlby said, given that its typically outside the control of the average person.

Instead, she said she advises her clients to only fill up their gas halfway once a week whenever possible.

‘This helps cut back their cost because they know they travel is limited and they have to plan out their trips accordingly.’

She also warned drivers not to go out of their way to find the cheapest gas station because they might end up using more gas than they planned on saving.

‘Don’t drive out 10 miles to save 10 cents at the pump,’ she said.

Although prices have gone down a bit, averaging at $ 4.72 on Friday, the West is still contending with high prices, with California leading the way at $ 6.14 a gallon

Although prices have gone down a bit, averaging at $ 4.72 on Friday, the West is still contending with high prices, with California leading the way at $ 6.14 a gallon

DO I HAVE TO STOP DINING OUT?

A key way for people to save money ahead of the recession is to cut back on dining costs.

The average American spent about $ 2,792 last year eating out, according to the BLS, and about $ 1,200 on fast food.

Rather than cut off dining out altogether, Dahlby advised people to go out earlier than normal to take advantage of restaurant’s happy hour deals, which usually take place between 4pm to 7pm.

The deals tend to offer food at discounted prices, which Dahlby said diners should opt to share to keep their bill low.

‘People should also avoid overspending on alcoholic drinks, because that’s where the tab really goes up,’ she said.

The average American spent about $ 2,792 last year eating out, according to the BLS, about $ 233 a month.  Americans spent an average of $ 1,200 on fast food in 2021

The average American spent about $ 2,792 last year eating out, according to the BLS, about $ 233 a month. Americans spent an average of $ 1,200 on fast food in 2021

WHAT UNNECESSARY SPENDING CAN I CUT BACK ON?

With American’s looking into ways to save money, Dahlby said a review of your recent bills can help reveal what to cut back on.

The financial advisor said everyone has spent money where it is not necessary, whether it’s a daily latte going for $ 7 or a trip to buy one thing that becomes plagued by impulse shopping.

A recent survey from Sickdeals, an online shopping platform, found that Americans spent an average of $ 314 a month on impulse buys this year, up from $ 276 the previous year and from $ 183 in 2020.

Leading impulse buys this year was clothing, with about 35 percent of shoppers saying they bought more than they intended. Following behind were food spending, household items, shoes, and tech purchases.

Dahlby said people need to learn to kick this habit, and urged people who are struggling to instead take advantage of store pick-up options that have become widely available since the pandemic.

‘It’s easier now to order what you need and pick it up without ever actually stepping into the store,’ she said. ‘That way you avoid the temptations and impulse buys.’

She added that people should be ready to cut off subscription services and memberships to services they do not immediately need as a money saving strategy.

HOW DO I DEAL WITH THE STRESS OF INFLATION AND A LOOMING RECESSION?

Despite all the tips, Dahlby acknowledged that people can still be anxious and stressed out about the economy, but they should see the coming downturn as an opportunity.

‘This is a chance to look into savings accounts, investing options and how to save on your taxes,’ she said. ‘Anxiety comes from feeling a loss on control, so we need to focus on what we can control.’

She likened the coming economic slump to turbulence on an airplane.

‘You get scared when you hit turbulence and the plane shakes, but it does not last, and you’ll get where you planned to go.’

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