How To Beat Inflation This Year If You’re Earning an Average or Minimum Wage
Written by
Adam Palasciano
Edited by
Amber Barkley
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Housing, groceries, gas, utilities and more: Basic needs are expensive these days. It might seem like no matter how much you earn, costs keep creeping up, making it harder to afford everyday life, even if you’re earning more than $60,000 per year.
The U.S. Bureau of Labor Statistics found that the median weekly earnings of full-time workers was $1,194 in the first quarter of 2025. Considering there are 52 weeks in a year, that means the average full-time worker’s annual salary is about $62,088. However, despite what seems like a livable wage, most U.S. adults have many financial worries, and inflation is the biggest one of them all.
Northwestern Mutual’s 2025 Planning & Progress Study reported that for 65% of U.S. adults, inflation is the number one concern regarding factors that could impact their finances in 2025. This beats out taxes and housing costs, at 37% and 32%, respectively.
If you don’t feel like your average or lower earnings are enough money, current inflation might be partly to blame.
How To Make Ends Meet During Times of Inflation
Here are a few ways to make ends meet and beat inflation in 2025, no matter your current wage or the state of the economy.
Take on a Side Hustle
Taking on a side gig can help boost your income, helping you fight back against inflation. Whether it’s becoming a rideshare driver, dog walking or babysitting, finding one — or more — ways to bring in extra cash can give you financial breathing room.
Stick to a Strict Budget
Budgeting can be an effective way to keep more of your cash and avoid getting yourself into debt.
There are several smart budgeting methods to try, including the 50/30/20 rule, pay yourself first and the zero-based budget. No matter which option is right for you, getting serious about watching how you spend your money is a great start.
Consider Alternative Transportation Options
Car ownership is not cheap: Monthly car payments, gas, insurance, tolls, parking and maintenance costs can add up quickly. Instead, SoFi suggests limiting driving when possible by carpooling, taking public transportation, taking a bike or even walking where you can.
These alternative transportation methods can help decrease or eliminate some of your monthly costs and leave you with extra money for other necessities.
Inflation Is Still Elevated
According to the U.S. Bureau of Labor Statistics, the current U.S. inflation rate is 2.4% for the 12-month period ending April 2025.
While overall inflation is down slightly, it’s still 0.4% above the Federal Reserve’s general target inflation rate of 2%. Inflation continues to take a bite out of the average’s workers pay, and those only earning minimum wage may be the most vulnerable.
Most Minimum Wages Around the US Are Still Low
The vast majority of states’ minimum wages are still quite low and will not allow you to earn anywhere close to the average annual salary of $62,088, even if you’re working full-time.
Only 10 states and Washington, D.C. have a minimum wage of at least $15 per hour, and even that only equates to annual earnings of $31,200 working 40 hours a week. Meanwhile, 20 U.S. states only have a required minimum wage of $7.25 per hour — the same as the current federal minimum wage, which hasn’t changed since 2009.
If you’re lucky enough to earn the average $62,088 annual salary — or even $20 per hour as a fast food worker in California — is either enough to beat inflation this year and make ends meet?
Financial experts are warning of an “uncertain economic outlook” ahead, per ABC News. There’s no telling for sure, but the economy could get worse before it gets better.
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