Preparing Financially in a Time of Inflation and Tariffs

Rising inflation and increasing tariffs are quietly putting pressure on household finances nationwide. If you’re like many, you may be experiencing the strain—whether it’s at the supermarket, the gas station, or your utility bill. However, stay encouraged and look for ways to keep your household afloat during these times. Below are approaches YOU CAN CONTROL to stay on track financially.

Monitor Your Spending - Inflation can make it challenging to recognize how quickly prices are rising. Utilize a budgeting application or spreadsheet to examine your spending over the past 60 to 90 days. Where are the most significant increases affecting you—in food, transportation, or services?

Prioritize Needs Over Wants  - Higher prices require us to be more deliberate in our spending. Categorize your expenses into “needs” (such as housing, food, and healthcare) and “wants” (such as dining out, subscriptions, or branded goods). Even slight reductions in “wants” can provide more flexibility in your budget.

Revisit Your Grocery List -  With food costs on the rise, think about meal prep and planning, purchasing in bulk, and choosing store brands. Utilizing coupons, taking advantage of reward programs, and shopping during weekly sales can lead to considerable savings over time.

Safeguard Your Income -  Could you pick up a side job? Request a salary increase? Sell items you no longer use? Even small, modest increments in income can help balance out climbing expenses.

Modify Savings Don’t Stop It - If finances are tight, you can temporarily reduce your savings but try not to stop entirely. Saving even $25 monthly helps maintain the habit.

Finally, Remain Flexible - An effective budget is not fixed; it evolves with your circumstances. Review it regularly and feel free to make adjustments.

Inflation and tariffs present challenges. Try to stay positive and seek solutions to what is happening to you financially. You can do this!  The Financial Empowerment Center is here to help you!