Most Americans say they are worried about inflation, that now costs families hundreds of extra dollars each month. Cheddar News speaks with Tom Wheelwright, CPA and entrepreneur on how to best weather the economic storm. 

Cheddar's News Wrap

How To Best Budget For Inflation

Welcome back to Chester's news wrap for months. We keep hearing that inflation hit a new record and you don't have to go past your local grocery store aisle to see the proof everything nowadays cost more. And americans expect prices to go up even further. That's according to a recent Federal Reserve survey And they're not wrong either. The Fed said during its June meeting that another 75 basis point rate hike is possible this month and experts expect increases to continue at a record pace until the end of this year joining me now to help us whether this economic storm is tom will write C. P. A. Entrepreneur and author. Tom welcome to the show. The same Fed survey also show people are more concerned about their personal financial situations and of course the U. S. Job market. So can you tell us what should they spend or not spend their money on right now? Well you know the first thing to realize that you want to spend your money on something where that you'll get a discount right, you want to buy things on sale. And the best way to get something on sale is to get the government to actually help contribute to it. So that's why we always say the fastest way to put money in your pocket is to actually reduce your taxes because then the government is contributing a part of the purchase price. And that inflation doesn't hurt so much. Do you have any tips for people to better budget, their expenses, their finances? Tom. Yeah for sure I I like using the word project your expenses because budget is so negative. We, we think, oh no, I have to tighten my belt. I don't want to do that. So instead, um, I would take and look out for the next year, two years, three years and say, okay, what do I need to spend money on? How much is that gonna cost? And let's just project that, how much I I can spend and then we can say, okay, if we, if we're spending it on something that we don't really need or something we go, you know what, I don't really need to spend that money. We're projecting that out. And that's a very positive way to look at it. What about taxes? Is there any way people can lower their taxes moving forward so many ways. So there are things that the government will actually incentivize you. There are things that the government will give you tax reduction for, I mean, for example, let's say you're going to buy a new car. The government, there's ways to do that in such a way that the government will pay for part of that car. Um, you can get the government pay for part of your house, You can get the government to pay for a lot of your expenses as long as you have some sort of business now that business could be an Airbnb. It could be an online business, but there are lots of things in my, my new book, The win win. Well, strategy, I actually list seven different investments the government literally pay you to make so that you can actually get a tax reduction while you're building your wealth. What about people that don't have those big businesses that are just trying to save some money when it comes to taxes? Well, you know, the first thing to consider is that the, you know, one of those seven investments is your ira your 401k. So remember that the government is giving you a tax incentive every time you put your money there. Whereas if you put your money in the bank, you're not getting any tax benefit for putting the money in the bank. So at least consider that. Um but seriously, it's very easy to start an online business. You don't have to be big, you can be a little tiny business and get a deduction for your home office deduction for your car and a lot of your other expenses. Is it a good time tom to be saving money or do you think americans should be investing? I I think americans should always be investing. Remember that the government taxes you on any money you spend or save, They don't tax you on money you invest. And so you actually have a lot more money if you're investing it than you do if you're saving it and I have about less than a minute left. Tell me about your book. Tom oh thank you. So most people think um you know, taxes are a win lose. So in other words, if the if the government wins, you're going to lose or if you cheat and you win, the government loses. And the reality is there are a lot of ways things the government wants done that if you do those things, um then the government will will contribute. You can be an active partners that are being a silent partner. Things like business, things like renewable energy, things like um even even real estate like Airbnb. All right. Tom Wheelwright C. P. A entrepreneur and author. You can read more on Tom's financial expertise in his latest book, The Win win wealth strategy seven investments the government will pay you to make. It hits shelves tomorrow, Make sure to get your hands on it.