Inflation continues to make life difficult for millions of Americans.
Although prices have moderated somewhat in recent months, costs continue to climb. And it seems unlikely that the trend will abate any time soon.
That truth has people discouraged, according to recent polling by Fidelity Investments. In a survey of 3,569 adults ages 25 to 75, Fidelity found that:
- 82% are concerned about the damage inflation will do to their finances.
- 57% believe higher prices will be around for up to three years, with 35% expecting inflation to last even longer.
- 51% believe they lack the ability to take “meaningful action” that will help them combat inflation.
However, that doesn’t mean everyone is throwing in the towel. In fact, 85% of people say they are changing behaviors in an attempt to stay afloat financially.
Following are the top four ways Americans say they are coping with inflation.
Survey respondents who said they are taking this remedial action due to inflation: 31%
Americans already save too little. But inflation is making the situation worse. It is hard to put away money when you are struggling just to pay the bills every month.
The situation is especially bad for millennials, with 36% of people in this age group saying they are cutting back on saving.
Looking for bargains
Survey respondents who said they are taking this remedial action due to inflation: 28%
Periods of inflation or recession give frugal folks the chance to shine. All those good habits developed during better times really begin to pay off when the economy sours.
Even though prices are climbing, a little creativity can help you keep costs in check. For more on how to do this, learn about the “10 Sure-Fire Ways to Beat Inflation.”
Delaying large purchases
Survey respondents who said they are taking this remedial action due to inflation: 34%
Yes, you could go out and buy a shiny new car. But with higher prices at dealerships everywhere, you might pay a fortune.
Perhaps you would be better off giving that older car a good scrubbing and holding on to it a bit longer. Many Americans apparently are choosing the latter course and putting off big purchases for now.
Survey respondents who said they are taking this remedial action due to inflation: 52%
The best way to avoid the damage of higher prices is to simply stop paying them. The less you spend, the less inflation really matters.
For additional tips on keeping your wallet closed more often, check out: