You Can’t Stop Inflation But You Can Counter Some of the Effects

By now, we’re all feeling the impact of rising prices—whether it’s at the gas pump, the grocery store, or even in everyday items we used to take for granted. Inflation is no longer just a news headline; it’s a reality that’s making us rethink how we spend. One personal example hit home for me this morning when my son hollered upstairs that he needed a new stick of deodorant. Typically, I wouldn’t give that a second thought. But, having just bought a 2-pack of my favorite brand last week, I realized that the price per stick has nearly doubled over the past few years. A stick of deodorant that cost me $4.50 in 2020 is now selling for $8.99—an incredible jump. And it’s not just food prices on the rise; non-food goods are seeing dramatic cost increases too.

Statistics might say inflation has risen 20-25% since 2020, but in everyday life, it feels like certain items are rising much more. Inflation doesn’t impact all categories equally, and sometimes it’s those seemingly small things that remind us just how much costs have gone up. So, how do we cope when nearly everything is more expensive?

What to Do During Inflation

While we can’t control the global economic factors driving inflation, we can manage its impact on our wallets. Smart spending is all about knowing where inflation is hitting hardest and adjusting your purchasing habits to maximize your dollar. Whether it’s holding off on certain purchases or finding creative alternatives, the key is being proactive and thoughtful about where you’re spending.

Automobiles

It’s no secret that car prices have soared, along with the cost of gas. As the world returned to normal after pandemic lockdowns, demand for vehicles and fuel skyrocketed. Manufacturers, unprepared for this sudden demand surge, struggled to ramp up production. The result? Price increases of anywhere from 10% to 60% in the auto industry.

If you’re in the market for a car, now more than ever, it’s crucial to shop around. Check prices at multiple dealers, use online resources to estimate a fair market value, and don’t be afraid to negotiate. As for gas, it’s time to get strategic. If switching gas brands or using a price-comparison app helps you save even a few cents per gallon, those small savings can add up significantly over time.

Appliances and Electronics

The pandemic’s impact on the production of appliances and electronics is still being felt. If you’re in need of a new refrigerator, washing machine, or even a TV, be prepared for higher prices and longer wait times. Prices may stabilize eventually, but they likely won’t return to pre-pandemic levels. To counter this, compare features, prioritize what you truly need, and consider independent retailers or lesser-known brands that offer better prices than the big-box stores.

Groceries and Essentials

Food prices have risen across the board, with many staples increasing by more than 6% since late 2020. While we may not have control over these price hikes, we do have control over what we buy. Now’s the time to consider lower-cost alternatives—maybe less steak and more chicken, or shifting your diet to include more plant-based proteins. Also, take advantage of sales, discounts, and rewards programs to stretch your grocery budget further.

Entertainment

Inflation doesn’t have to mean cutting out fun entirely. With event prices rising, you can get creative with how you enjoy your free time. Instead of splurging on concert tickets or expensive sports events, gather friends for a streaming party and split the cost. You can also enjoy outdoor activities, such as hikes or park visits, that don’t cost a thing. There’s still plenty of affordable entertainment if you’re willing to think outside the box.

Seek Out Better Opportunities

Higher inflation also means it’s a great time to ask for a raise. With the cost of living rising, many employers are open to salary adjustments to help employees keep pace. Inflation also impacts other areas, such as tax refunds and benefits, so keep an eye on those as well.

This could also be a time to explore new career opportunities in industries that are booming despite the economic downturn. Switching to a high-demand field may offer better pay, benefits, and job security in uncertain times. Remember, every inflationary period brings with it a unique set of opportunities—if you know where to look.

Take Charge of Your Finances

While inflation continues to drive up prices, smart, proactive financial decisions can help you counter its effects. By being strategic with your spending and finding creative ways to save, you can maintain control over your finances even when the cost of living is rising. The key is flexibility—knowing where to cut back, when to stock up, and how to make the most of your money.

Seek Financial Guidance

If you’re feeling overwhelmed by rising costs or unsure of how to make your budget stretch, you’re not alone. Seeking help from financial professionals can make all the difference. At Money Fit, our nonprofit credit counselors can work with you to develop a personalized plan that fits your needs. Whether it’s managing debt, aligning your budget with your goals, or finding ways to save, we’re here to help you take back control of your financial future.