Feel Like Inflation Is Rising Faster Than Your Income? 8 Things You Can Do Today
Written by
Jordan Rosenfeld
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Molly Sullivan
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It’s tough out there for the average American worker, even with inflation cooling (but not stopping). More than one-quarter of Americans report spending more than they earn, according to a July FINRA study.
Even though the inflation rate has slowed, the prices that went up in its wake aren’t likely to come down, and there are plenty of concerns that inflation might take an upward trajectory in 2026.
If you’re feeling like you can’t keep up with inflation or cost of living increases, financial experts offered eight steps you can take today.
Track Your Spending
“The quickest step is to get clear on where your money is going,” said Gabriel Shahin CFP, founder, principal and author at Falcon Wealth Planning. He recommended tracking your spending for 30 days, then cutting or reducing the nonessentials.
“Even trimming $200 to $300 a month on dining out, unused subscriptions or impulse buys can make an immediate difference,” Shahin said. Small adjustments compound quickly.
Adjust Daily Spending Habits
Inflation doesn’t just hit your big-ticket purchases, but even small, daily habits. “Making coffee at home, meal prepping or carpooling are not glamorous, but they free up cash instantly,” Shahin said.
Those savings give you breathing room while you work on bigger strategies like increasing income or restructuring debt.
Review Statements
The most obvious relief to a stretched paycheck is “reducing discretionary spending, such as dining out or impulse purchases,” agreed Chad D. Cummings, an attorney and CPA at Cummings & Cummings Law.
If intricate budgeting is not your jam, reviewing bank and credit card statements often reveals overlooked subscriptions that can be canceled immediately, he said.
“In addition to cash flow relief, some of these cancellations have contract implications. For example, ensure that canceling a gym membership or service agreement complies with the contract’s notice terms, which may prevent penalties or collection issues.”
Negotiate Lower Bills
Cummings called negotiating down bills “one of the most underused tools people have.” Calling lenders or service providers to ask for lower rates can free up hundreds per year. “It takes one phone call to create lasting savings.”
Additionally, while you can lower insurance rates by dropping certain provisions, be careful to weigh short-term savings against the long-term risks created by reduced coverage.
Grocery Plan and Shop More Strategically
You can shave a decent amount off your grocery purchases through meal planning that also helps you establish a tidier shopping list, Shahin said. Additionally, buying in bulk, using apps that offer cash-back rewards or grocery store loyalty programs can typically save you money instantly.
“For households with dependents, careful documentation of child care or meal expenses may also feed into tax credits, such as the child and dependent care credit,” Cummings added.
Get Ahead of High-Interest Debt
High-interest debt, like credit cards, is the most dangerous in an inflationary environment, Shahin said. “Focus on paying those balances down first, even if it means making only minimum payments on lower-rate loans.”
Taxpayers should also be aware of the deductibility of certain interest payments, Cummings said. “While personal credit card interest is not deductible, mortgage interest and some student loan interest, are.”
Some credit card balance transfers can bring temporary relief, as well, he said, “but consumers should review contract language carefully to avoid hidden fees and ensure compliance with truth-in-lending requirements.”
Consider Side Hustles — but Intentionally
If you’ve got extra energy or time, you can look into adding a side hustle, but Shahin warned that “they should be intentional.” While a few hundred dollars extra a month from gigs like consulting, tutoring or driving for a ride-share company can bridge the gap created by rising prices, you don’t want to burn yourself out.
“Side hustles can also raise questions of classification under labor law if they blur the line between independent contractor and employee, so understanding the legal framework is critical,” Cummings noted.
Make a Mindset Shift
Perhaps the best thing you can do is to shift your focus from what you can’t control — like the inflation rate — to what you can.
“Building an emergency fund, sticking to a budget and celebrating small wins builds confidence,” Shahin said. This can make the difference between feeling stuck and seeing a way forward.
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