Inflation, the Constant Drip....Drip....Drip.

If you are in tune with the news or financial reporting in these days (early 2025), you cannot avoid the topic of inflation and its impact on the consumer. In other words, its impact on YOU! It is often said that there are two things in life you can’t avoid, “death and taxes”. I’ll add a third which is inflation. The question is how do you battle against this two-headed monster?

First, a little about inflation. I’m sure you know that inflation is the increase in the cost of goods and services you spend money on over a period of time. Food, gas, clothing, electricity, dining out, etc. Inflation is typically measured by the federal Bureau of Labor Statistics and is known as the “Consumer Price Index”. This index is expressed as the percentage increase of a fixed basket 80,000 goods and services over a period of time (i.e. monthly, yearly).

We were spoiled with low inflation levels year over year from 2010 – 2020 with seven of ten years falling below the Federal Reserve’s target of 2.0%. The Covid-19 pandemic years of 2021-2023 lead to higher inflation of 4.7%, 8.0%, and 4.1% respectively with business shutdowns, supply chain disruptions, and other factors. And for 2024 and into 2025, we now see levels in the 3% range. Keep in mind that even though an improvement over the 2021-23 period, this still means consumer prices are INCREASING albeit at lower rates.

So how do we as everyday consumers off-set and combat high inflation? The common and most readily short- term reactions may include:

· Bargain shopping….looking for the deals and sales.

· Coupon clipping to get discounts.

· Turning the A/C up or down in season.

· Deferring major expenses and purchases.

Many of these immediate measures should be part of our lives anyway. We should be looking for the most efficient ways to spend our hard-earned cash.

Now to my view of the most appropriate way to off-set inflation which is to continually look for ways to improve income. I do understand that some of us may be limited in how to achieve this in today’s job market. The most immediate way to add dollars to the income side of the equation is via overtime, side jobs, and hustles. In my view, this can be a proper step to take however it should only be short term. Look at the time you will invest to grab at the dollars and the changes in quality of life that will result.

My suggestion is to continually find ways to invest in yourself to make yourself more valuable to your employer. Make sure your employer recognizes the value you bring to the plate. This can come through gaining additional education or skills that apply to your current position or a new position that may be available. If your employer is not receptive to allowing you to grow, look for new opportunities. Often, this is the best way to be rewarded for the good employee you are. In today’s labor environment, I believe this door is open to most.

Again, I say, find ways to ensure your employer recognizes the value you bring to your job and don’t be shy! I recall one year where I received my yearly job review and received an average rating (and salary increase). Instead of accepting this passively, I scheduled a meeting with my leader with the aim of defining what results must I deliver to be rated as a top performer. We left with a good list of defined actions that I could focus on for the year. Each quarterly review, I ensured this list and my progress were not forgotten and were recognized. At the end of year, my final review was easy, and I was awarded with a top rating (and a corresponding salary increase). This is absolutely the premium path to skills upgrade, career growth, and salary improvement to offset the effects of inflation that quickly can eat up any meager increases in income we may receive.

I wish you luck and the best in your journey.