A customer shops in an American Eagle store on April 04, 2025 in Miami, Florida. Joe Raedle/Getty Images
Inflation feels as intimidating as ever for Americans. Prices keep rising, squeezing household budgets in the United States. According to the Bureau of Labor Statistics, consumer prices rose 2.9 percent in the 12 months leading up to August 2025. From health insurance to grocery prices, many people feel like their money just doesn’t stretch as far as it used to. But even though your purchasing power is being eroded steadily, you can still take small, practical steps that will protect your money. Here are eight ways to beat inflation this year and keep your finances on solid ground.
1. Track Where Prices Hit Hardest
It’s important to track the prices of all your expenses no matter what inflation looks like. When you know where your money goes, you can manage your finances better and prevent emotions from influencing your spending decisions. Ask yourself:
- What unnecessary items are you buying?
- What costs are putting the most financial pressure?
Get answers to these questions as you evaluate your expenses. Whether it’s utilities, groceries, or the coffee you treat yourself to every day, tracking every detail helps you remain aware of your spending. Every penny adds up, so identify problem areas that quietly increase your expenses.
Check your receipts and bank statements, and note the items that are making your monthly expenses higher than they should be. Note the impulse buys and subscriptions. Do you really need them? Do you need to buy the brand name version? Is there a generic version?
