A staggering 63% of Americans think inflation is a 'big problem' — here are 3 simple strategies for fighting inflation

Prioritize your spending

A February, 2025, Wells Fargo study found that 76% of Americans are cutting back on spending — a decision fueled by persistent inflation.

If inflation is wreaking havoc on your budget, you may want to make cuts as well. But rather than slash your spending at random, prioritize your spending so your money is used to buy the things that are most important to you.

Obviously, you have to pay your rent, cover your car payments and put food on the table. But in the context of your discretionary budget, think about the things you’re spending money on and decide which add the most value to your life.

If your weekly outing with friends is more important than your gym membership and streaming services, keep the social plans and ditch the other two bills.

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Boost your income with a side job

In 2022, 29% of Americans with a second job said inflation was a factor in their decision to take on a side hustle, reports Side Hustle Nation.

If you’re having a hard time keeping up with rising living costs, it could pay to pick up some more work on top of your main job. But you may not want to pick up any old side hustle. Instead, do your research to find a gig that’s worth your time.

And also, be mindful of your schedule so that you don’t get burned out. If your main job comes with unpredictable hours, a more flexible side gig may be best, such as driving for a rideshare or food delivery service.

Invest your money in inflation-beating assets

Inflation is bound to be a problem for a lot of Americans in the near term, but what you may not realize is that inflation is something you need to plan for now in the context of your retirement.

You may be steadily contributing money to an IRA or 401(k) plan today, which is great. But if you’re not investing your money in assets that can beat inflation, you risk ending up with a retirement shortfall, as $1 today won’t have nearly as much buying power in 20 or 30 years.

A 2024 Allianz Life survey found that 63% of Americans worry more about running out of money in retirement than dying, and 43% say that high levels of inflation are contributing to that fear. But if you invest your long-term savings in individual stocks or S&P 500 ETFs, your portfolio might grow at a fast enough pace to beat inflation.

And while the Federal Reserve may target an annual inflation rate of 2%, that doesn’t mean we’re due for a decades-long period of 2% inflation every year. But chances are, once this current stretch of heightened inflation cools off, we’ll get closer to that mark and hopefully stay there for a good number of years.

Meanwhile, over roughly the past century, the stock market has rewarded investors with an average annual return of around 10%. And while past performance doesn’t guarantee anything for the future, it’s fair to assume that over time, stocks have the power to outpace inflation, setting you up for a more secure future once retirement rolls around.