MINNEAPOLIS — New numbers from the federal government show the average American needs nearly $11,500 in additional funds just to maintain the same standard of living they enjoyed in 2021.
Inflation continues to hit Americans' bank accounts hard, and Minnesotans need more than the average. The Joint Economic Committee says Minnesotans need nearly $13,000 to afford the same standard of living they had just a couple of years
Minnesota is not the highest — Colorado residents need nearly $15,000. Meanwhile, Arkansas is on the low end, with residents needing just less than $10,000 to maintain the same standard of living.
The survey shows older workers, lower income earners and hourly workers are more likely to say their pay has not kept up with inflation.
So what is taking the biggest bite out of our money? Here's how the Bureau of Labor Statistics' October report breaks down:
- Groceries: +2.2%
- Transportation: +0.5%
- Repairs: +15.1%
- Insurance: +19.2%
- Medical care: +0.2%
- Household: +7%
The latest data from the federal government show inflation actually went down half a percent in October from September, and down significantly from the record more than 9% we saw in June of 2022. Among the biggest factors leading to the decrease from a year ago:
- Energy: -10%
- Gas: -11.3%
So what can you do to save? Sarah Foster, an analyst at Bankrate, says use these numbers to your advantage.
"If you compare your bills with those overall inflation rates, you might be able to tell maybe this is something that I am spending money on right now that I can substitute and get something else at a lower price, or at the very least it can help you be aware of just how much inflation is impacting your wallet," Foster said.
Foster also says now is the time to make sure that your money is earning interest in a high-yield savings account. She also says be open to new job opportunities that could come with a pay raise.
"There are opportunities out there, and a strong job market benefits all workers whether they're looking for a new position or whether they're currently in a job," she said. "We do know that when they have bargaining power that's when they have the leverage to really ask for higher pay and negotiate."
Foster also says Americans who got the biggest pay raises were those who found a better job, and not those who stayed in their current position.
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