• Alex Mizerski

How to combat inflation

Updated: 1 day ago

We have all seen it! Our dollar isn't going as far as it used to. Inflation is at a 40 year high and there is no sign of prices coming back down any time soon.

So what do you do?

Before we can figure out what to do, it helps to better understand what inflation is.

What is Inflation?

Inflation is a measure of the rate at which the general level of prices for goods and services is rising, and subsequently, purchasing power is falling. Central banks attempt to limit inflation and avoid deflation, in order to keep the economy running smoothly.

How do Interest Rates Impact Inflation?

Interest rates and inflation are closely related, and changes in one can have an effect on the other. In general, higher interest rates can help to curb inflation, while lower interest rates can contribute to higher inflation.

When interest rates are high, it becomes more expensive for people and businesses to borrow money, which can dampen economic activity and demand for goods and services. This can help to keep a lid on prices and prevent inflation from rising too quickly.

On the other hand, when interest rates are low, it becomes cheaper for people and businesses to borrow money, which can stimulate economic activity and demand for goods and services. This can lead to higher prices and contribute to higher inflation.

Therefore, central banks, such as the Federal Reserve in the United States, will typically adjust interest rates in an effort to maintain a healthy level of inflation and support stable economic growth.

Now let's talk about what you can do to fight inflation and stay financially fit.

How to make more money during times of inflation:

Making more money is something I'm sure everyone has on their mind. It isn't always easy, but there are a ton of ways to get out there and make more money. I've already got a list of the most common and lucrative "side hustles" out there. Along with a list, I've also included advice on how to get started with each of these side hustles.

Truth be told, many of these side hustles have become such commonplace in today's workforce that many people just consider them part of their careers. Many people are just making "side hustles" their careers. Take The Millenial Money Man, for example, a few years ago he was a teacher full time. He tried out blogging, had some success, and immediately turned it into his full-time career. The same goes for Making Sense of Cents, that blog took a bit longer to get off the ground (kind of like The Saving Dude), but eventually turned into a highly profitable blog. I'm sure there are similar stories, but just not as public as those who write blogs.

If additional work isn't your thing, then you can negotiate your salary. Now is a great time to ask for a better salary. The job market is great for many industries making it even more critical for employers to retain their employees.

Another option is to use Swagbucks! I've been using Swagbucks for nearly 2 years and have earned tons of free gift cards. There are a ton of super easy ways to earn gift cards, watch short ads, play games, or install the Swagbucks plugin and it will prompt you to save money while you shop online. It is super easy to use and a quick way to make money and save money

How to save more money during times of inflation:

Saving money during times of inflation is the tactic that most of us probably need to employ because not everyone has the time or ability to make more money.

I mentioned this above, but using Swagbucks is a great way to save money during times of inflation. If you install the plug-in then it will automatically prompt you to save money if you are on a site they partner with. Even if you are buying a specific product they are partnering with you can save money, regardless of the site you are on.

If you are looking for specific ways to save money, check out the Save Money section of The Saving Dude. You can find articles on how to save money on groceries, gym memberships, and much more.

How to spend less money during times of inflation:

Spending less money isn't always easy, especially for those that are already spending as little as possible. If you are reading recent news regarding inflation you know that this is here to last for a while. So, if there are projects you can put off for 6-9 months, it might be worth considering. If you do decide to put a project off and you have the money ready to pay for it, consider putting that money into a CD. These are very low/no-risk investments that will help your money grow while you wait for prices to come back down.

Another way to spend less is to shift what you are eating. Instead of fish and steak, swap out eggs (a really great and cheap protein source). Adding more oatmeal to your diet is another cheap item that is super healthy. Another healthy food swap that will save you money is popcorn in place of chips. If you buy regular popcorn and flavor it with salt/pepper vs buying the buttery kind, then you can spend less and save calories.

One last thing about spending less that my family has found very useful. Many items have recommended use times, toothbrushes for example. For items like this we just stretch that usefulness date ever so slightly. So instead of changing our toothbrush every 3 months, we may go 3.5 months, or even 4 months. You can also read here about the “expiration” date of foods. Spoiler, expiration dates are just guidelines in many cases. So this will help you reduce food waste. Pour a little water into the bottle of your soap dispenser to squeeze every little bit out.

Other ways to combat inflation:

  1. One way to combat inflation is to invest in assets that tend to hold their value or increase in value over time, such as stocks, real estate, or precious metals. These types of investments can provide a hedge against inflation, as their value may rise as the purchasing power of money falls.

  2. Another way to combat inflation is to shop around for the best prices and look for deals and discounts. By being a savvy shopper and carefully managing your budget, you can stretch your money further and make it go further in the face of rising prices.

  3. Additionally, some people may choose to reduce their expenses and save more money in order to protect themselves from the effects of inflation. By building up a savings cushion, you can have a buffer against unexpected expenses and maintain your standard of living even if prices rise.


Overall, the best way to combat inflation will depend on your individual circumstances and financial goals. It may be helpful to speak with a financial advisor or professional to determine the best strategy for you.

I'd love to hear from you, how you are ensuring that inflation has a lower impact on your household?

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