Ah, inflation—the sneaky little force that makes your paycheck feel smaller, and your grocery bill look like a defense budget. One day, your grocery bill seems reasonable, and the next, you’re taking out a second mortgage just to afford eggs.

We could sit around waiting for politicians to figure it out, but let’s be honest—getting agreement on anything money-related is about as rare as a budget surplus. And in the meantime, the numbers don’t lie.

From 2018 to the end of 2024, the cost of living has shot up by 36.8%. If you spent $50,000 a year in 2018, you’d need $68,400 today to maintain the same lifestyle. And if we narrow it down to just the last three years? Prices have risen by 21.3% since 2021—that’s a lot of extra cash just to keep up. So, while Congress debates, vetoes, and reintroduces plans that may or may not ever see the light of day, here’s how to take control of your own money, stretch your dollars further, and ensure you’re running your household better than DC runs the country.

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1. Know Where Your Money Is Going (Most people don’t)

Federal spending plans may be full of loopholes, but yours needs to be airtight. The key is knowing exactly where your money is going before it disappears into the void.

• Use YNAB to give every dollar a job that you need it to do.
• Figure out where inflation is hitting hardest—groceries, gas, insurance—and shift your spending accordingly.
• No “projected revenue” assumptions—Congress can get away with planning money they hope will appear, but that’s not how real life works.

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2. Focus on Essentials First, Not Everything Is a Must-Have

If your spending plan were a national economy, you’d want to keep it running efficiently without waste. That means focusing on what actually matters.

• Mortgage, food, and utilities first—these are the non-negotiables.
• Infrequent expenses—Set aside money for what is coming, it will come.
• Cut the waste—Get rid of what you don’t care about. You can probably cancel that gym membership or subscription you forgot about.

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3. Adjust Your Spending Plan (Before You Spend)

Just as campaign promises shift depending on the audience, your spending plan must adjust to inflation.

• Review spending: If you’re still budgeting like it’s 2019, you’re in for a reality check.
• Reallocate funds: Give more money to necessities and less to impulse buys. If only DC could do the same.

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4. Avoid High-Interest Debt, It’s Expensive

Debt is like a bad policy—it sticks around longer than expected and costs more than you planned.

• Use the GPS credit card debt reduction strategy—those rates are climbing faster than political campaign ads in an election year.
• Avoid new debt unless necessary—In your spending plan, only allocate the money you have. YNAB sets aside money to pay the credit card bill if you charge something. You will always be able to pay off your credit card in full.

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5. Protect Your Reserves (Inflation Eats Away at It)

The more inflation rises, the less your savings are worth, so take action now.

• Use high-yield savings accounts—earn more on your cash while keeping it safe.
• Keep a cash emergency fund—because unexpected expenses don’t come with a government bailout.

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6. Find Ways to Bring in More Money

If everything costs more, it might be time to boost your income.

• Negotiate a raise—inflation is a great excuse to ask for one.
• Explore side gigs—consulting, freelancing, or even selling stuff you don’t need. If the government can find “alternative revenue streams,” so can you.
• Invest in yourself—new skills can open doors.

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7. Have a Weekly Money Check-In (Because Accountability Works)

Proactively manage your spending

• Categorize your transactions so you know where your money is going.
• Reconcile accounts so there are no surprises.
• Adjust your spending plan—because prices change, and so does your strategy.

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8. Stay Calm and Stick to the Plan

The media loves panic, but you don’t have to buy into it.

• Avoid impulse spending out of fear. (No, you don’t need to stockpile a year’s worth of eggs—ew.)
• Stick to your plan and keep adjusting.
• Focus on what you can control. You can’t fix the economy, but you can make sure your spending is in order.

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Economic shifts will always happen, but your daily choices determine your peace of mind.

By making a solid spending plan, cutting unnecessary costs, and being intentional with your money, you’ll stay in control—no matter what happens in the broader economy. So go forth and take charge of your money, making strategic decisions—and the results will benefit you.

✅ Want a personalized plan? Let’s talk. Book a free confidential  strategy call today: MeetWithDoug.com

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The sooner you start, the sooner you’ll feel the relief of financial breathing room. You’ve got this! 🚀