There’s good news about inflation: It has fallen sharply from what had been multi-decade highs. The bad news is that Americans still feel they need to take steps to cope with higher prices, according to a recent study from the U.S. Federal Reserve Board.
The analysis of American family finances — known as the Economic Well-Being of U.S. Households in 2024 report — polled more than 12,000 adults living in the U.S. As part of the report, these Americans were asked about actions they had taken in response to higher prices.
Overall, 79% said they had made some such moves in the prior year. These are the top steps they took to combat inflation.
Asked for a raise
Respondents who took this action in response to higher prices in the prior year: 8% (down from 9% in 2023)
Hard-working, talented employees are unlikely to settle for simply trying to keep their heads above water as prices rise. Instead, they will ask employers to compensate them better for the skills they bring to the company.
If you are looking for a pay hike, here are “25 Best Salary Websites and Calculators to Research Your Pay.”
Increased borrowing
Respondents who took this action in response to higher prices in the prior year: 16% (up from 15% in 2023)
Sometimes, the only way to stay on top of rising prices is to go into debt. While this is never a great option, it can be necessary at times.
If a lack of green has forced you to slip into the red, try to pay off that debt as soon as you can. For more, read about “8 Surefire Ways To Get Rid of Debt ASAP.”
Worked more or got another job
Respondents who took this action in response to higher prices in the prior year: 18% (same as in 2023)
Not everybody has the time or energy to take on a second job or side hustle. But if you can do it, earning a little more is almost always a better way to pay your bills than sliding into debt.
If you’re looking for a side gig, check out “30 Best Side Hustles You Can Do From Home.”
Reduced savings
Respondents who took this action in response to higher prices in the prior year: 43% (down from 45% in 2023)
As expenses continue to grow, many folks are still limiting the amount they sock away into savings to make sure they don’t fall behind.
Having a stash of savings set aside can provide great peace of mind. Make this the year you build a rainy-day fund by learning about the “9 Tips for Starting an Emergency Fund Today.”
Delayed a major purchase
Respondents who took this action in response to higher prices in the prior year: 46% (down from 48% in 2023)
Most of us enjoy the thrill of a big purchase, whether it’s a new car, a stainless-steel fridge or even a trip to Barbados.
But if inflation has caused your budget to swell, it can be wise to put off big spending until happier times return.
If you absolutely must make a purchase, at least try to use these “10 Tips for Negotiating a Better Price on Anything.”
Used less or stopped using products
Respondents who took this action in response to higher prices in the prior year: 61% (same as in 2023)
During tough times, we sometimes discover that the things we thought of as “needs” were really “wants” in disguise.
One of the best ways to soothe the sting of higher prices is to simply buy less than you did before. Check out “25 Things You Should Never Buy — and What to Buy Instead.”
Switched to cheaper products
Respondents who took this action in response to higher prices in the prior year: 63% (up from 62% in 2023)
Frugal folks know that you can save a lot of money by purchasing cheaper versions of products. In many cases, these items are as good as their more expensive counterparts.
Ready to save? Discover “21 of the Best Things to Buy at the Dollar Store.”
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