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Financial expert explains how to use your money wisely as inflation increases

Limiting your spending and only focusing on the essential things is key.

ST. PETERSBURG, Fla. — The price tag is more expensive, but there are many items you need. Inflation is at it's highest rate in almost 30 years.

"What we're dealing with is a situation where we have more money chasing fewer goods. It's not like these goods will not be available to us in the future, they are just not as available to us in our present," Financial Advisor Eric Holmes said. "Anytime you have more money chasing fewer goods, you have prices go up."

He isn't surprised with what we're seeing now, saying the COVID-19 pandemic has had a big impact on the world's economy.

Data from the labor department shows overall grocery prices jumped more than 5.4 percent in the last year, and prices at the pump are up too.

"Look at your purchases and split them into discretionary and non-discretionary spending. Your discretionary spending is the spending where you can control what you do, make your cuts there. Your non-discretionary spending, you're not going to be able to control," Holmes said.

That's why many people could struggle as we wait for prices to drop. Those who are disadvantaged feel more of an impact.

"Their whole life is an essential expense. That's what happens. It's really that simple. Their life is essential. They don't have extra money that they're going to be able to determine what they can do. They just don't and it's unfortunate," Holmes said. 

With the holidays around the corner, Holmes urges everyone to take care of one another or rely on resources in your community. 

We've compiled a list of community resources for our 10 counties in Tampa Bay. Those include:

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