Smart, consistent action today can keep your finances strong, no matter how high prices climb.
Inflation feels as intimidating as ever for Americans. Prices keep rising, squeezing household budgets in the United States. According to the Bureau of Labor Statistics, consumer prices rose 2.9 percent in the 12 months leading up to August 2025. From health insurance to grocery prices, many people feel like their money just doesn’t stretch as far as it used to. But even though your purchasing power is being eroded steadily, you can still take small, practical steps that will protect your money. Here are eight ways to beat inflation this year and keep your finances on solid ground.
| 1. Track Where Prices Hit Hardest |
| 2. Use Higher Savings Rates |
| 3. Pay Down High-Interest Debt |
| 4. Invest in Inflation-Resistant Assets |
| 5. Automate Savings and Investing |
| 6. Cut Stealth Costs |
| 7. Protect Your Health to Protect Your Wealth |
| 8. Revisit the Plan Yearly |
1. Track Where Prices Hit Hardest
It’s important to track the prices of all your expenses no matter what inflation looks like. When you know where your money goes, you can manage your finances better and prevent emotions from influencing your spending decisions. Ask yourself:
- What unnecessary items are you buying?
- What costs are putting the most financial pressure?
Get answers to these questions as you evaluate your expenses. Whether it’s utilities, groceries, or the coffee you treat yourself to every day, tracking every detail helps you remain aware of your spending. Every penny adds up, so identify problem areas that quietly increase your expenses.
Check your receipts and bank statements, and note the items that are making your monthly expenses higher than they should be. Note the impulse buys and subscriptions. Do you really need them? Do you need to buy the brand name version? Is there a generic version?
Here are four ideas to make wise shopping choices:
- Don’t get a shopping cart if you’re just at the store for only one or two items. It prevents you from subconsciously filling it with unnecessary things.
- Try to avoid adding items you don’t need. Create a shopping list and stick to it to resist the urge to buy more.
- Plan meals with cheaper ingredients. Also, try meal-prepping to cut costs.
- Seek alternative brands with lower prices to save money on groceries and essentials.
- Look for BOGO deals and shop near the end of the day for additional discounts.
2. Use Higher Savings Rates
We all know how money can lose its value during inflation. What cost $5 in the past could cost you $10 as prices rise.
This is why you should look for a higher savings rate when inflation rises so your savings can grow faster than prices. Here’s what needs to be done to beat inflation with a higher savings rate:
- Consider opening a bank account that offers strong returns to protect the value of your money.
- Consider investing in Certificates of Deposit (CDs) that offer fixed interest rates. With this option, you need to deposit your money for a fixed period, and you receive a guaranteed return at the end of that term. Look for CDs that offer high interest rates.
- Invest in Treasury bills (T-bills), which are short-term government bonds. Unlike CDs, you can convert T-bills into cash at any time without missing out on competitive returns.
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