Inflation is not going away. It might be high or it may be low, but prices tend to creep up. The persistence of inflation is a factor making the stock market such an attractive investment. Over the long term, few investment choices have greater potential for a positive return after accounting for inflation. Your client faces bigger problems, ones that distract them from focusing on the long term. What are these problem and how can your focus on financial planning be part of the solution?

Why does the Federal Reserve raise interest rates? To slow the economy down. Your client has firsthand experience. Their income stays stagnant, yet their daily expenses rise sharply as manufacturers pass along cost increases to consumers. As their variable rate mortgage payments (or HELOC) increase, their disposable income shrinks. They need to either manage expenses better or go into debt.

As their financial advisor, here are several practical ways you can help them bring down their annual operating expenses.

1. Fuel oil. Does your client heat their home with oil? Not all expenses have been on an upward track. According to AAA, gasoline prices were $4.983/gallon a year ago and $3.578 now. Diesel is a good gauge to track heating oil prices. If diesel is down, heating oil should be a good deal. Your client’s car might only hold 20 gallons, but the heating oil storage tank at their home might hold 1,000. When prices are low, they should stock up on oil for the winter.

2. Reprice your fixed expenses. Our homeowner’s insurance jumped about 10%. Few people shop around. This is the time to take the fixed bills you set onto autopay and rarely think about and comparison shop for replacements. Talk with your insurance agent about raising the deductible or asking them to suggest other carriers.

3. Reconsider those vanity credit cards. You might have swapped your zero-fee credit card for the premium card with bells and whistles like airline lounge access. How many of the features do you use to justify the $450 annual fee. How often are you using the airline lounge to justify the fee? As an example, the American Airlines Admiral’s Club day passes cost $59.00.

4. Vacation using your other currencies. Many people have joined affinity programs for their favorite airline or hotel chain. Others choose a credit card like American Express that earn rewards points based on your spending. These points can be redeemed for hotel stays and flights. Some programs (like Amex) allow you to transfer points from their program into others. Plan this year’s vacation using points. Buy more if necessary.

5. How a 15% return became a 20% return. In the past, I’ve often written one of the easiest ways to get a 15% return on your money is to pay off the credit card charging you a 15% APR on your revolving charge card balance. The average credit card interest rate is 20.53% (5/15/23). Now, the easiest way to get a 20% return is to stop paying a 20% interest rate on your credit card balance.

6. Discover discount supermarkets. One of the wonderful traits of the free enterprise system is how people are able to spot an opportunity and capitalize on it. Aldi and Lidl are two German discounter chains giving traditional supermarket chains stiff competition. Wal-Mart and Target carry groceries too. Consider eggs, a basic food category. Costco carries extra-large eggs at $2.50/dozen. Lidl charges $1.08.

7. Rediscover Happy Hour. Your client is not going to adopt a spartan lifestyle. They need to have some fun. A couple of weeks ago, my wife and I stopped into a bistro in New York’s Tribeca neighborhood for a quick glass of wine each. After tax and tip, the bill was about $46.00! Last Friday, we went to a popular place in Bucks County, Pa., for their Happy Hour. Guiness is $4.00/pint. When prices go up, businesses lose customers. Competitors step in to fill the vacuum.

8. Cash back credit cards. Your client is still going to pay with plastic. They are not returning to cash anytime soon. According to Bankrate, 41% of customers say cash back is their favorite credit card feature. These cards may be giving you back 1.5% to 3.00%. You may be spending, but at least you are getting a reward that’s easy to use.

9. Restaurant discount programs. Find the local restaurants in your area with good affinity programs. We have a favorite restaurant we visit at least once a month. It’s quite elegant, yet I realize no one pays the prices posted on the menu! I think most people get 20% off the bill. The easiest way is to buy $100 in Costco certificates for the restaurant, which cost you $80. Their frequent diner program earns $25 for every $250 spent on a cumulative basis. The only people paying “sticker price” must be out of state tourists pulling into the parking lot for the first time.

10. Prepay your property and school taxes. In our area, we get a school tax bill and a property tax bill at different times of the year. They are sent months in advance, yet you get a 2% discount if you pay by a specified earlier date. You will need to pay this bill later this year, anyway. Pay it early and save 2%.

All these ideas provide incremental savings. Added together, the savings can be substantial.

Bryce Sanders is president of Perceptive Business Solutions Inc. He provides HNW client acquisition training for the financial services industry. His book Captivating the Wealthy Investor is available on Amazon.