Inflation challenges consumers and investors. It erodes purchasing power and may complicate financial planning, but there are some steps you can take to help fight the effects of inflation. Here are four tips to help reshape your financial future:

1. Keep Cash in High-Yield Accounts

   Inflation can lower the purchasing power of your savings. These effects can be partially offset by keeping your savings funds in high-yield savings accounts, money market accounts or short-term Certificates of Deposit (CDs). These accounts may offer higher interest rates than traditional savings accounts. CDs may offer the potential to reinvest at higher rates as inflation evolves.

2. Lock in a Fixed-Rate Mortgage

   A fixed-rate mortgage locks in your housing costs for decades. While rent prices may rise, and adjustable-rate mortgages (ARMs) could see potential increases in interest, homeownership with a fixed-rate mortgage offers stability and long-term value. Those in an ARM may want to consider whether refinancing with a fixed-rate mortgage offers potential long-term advantages in their financial picture.

3. Rethink Your Spending Habits

   One of the simplest ways to fight inflation is to adjust your spending behavior. Consider scaling back purchases. Make use of loyalty cards and member discounts where available. Stay in more rather than going out for entertainment. Review subscription-based accounts and cut out the ones you don’t really need. A penny saved is a penny earned against inflation.

4. Stay Informed on Trends

   Understanding the broader economic landscape helps you plan more accurately and make smart decisions. Read the news to stay informed. Set content feed alerts or notifications in your information feed and social media platforms for government actions like Federal Reserve interest rate changes, labor market reports and announcements of price changes from major brands. Staying informed allows you to anticipate changes and adjust your financial strategy to adapt.

By following these tips and staying informed, you can take steps that will help you lessen the effects of inflation on your budgeting and spending.

Sources:
https://www.cnbc.com/select/where-to-put-your-money-during-inflation-surge
https://www.cnbc.com/select/inflation-should-you-change-your-spending-habits
https://www.forbes.com/sites/catherinebrock/2025/07/23/novice-investors-how-to-manage-inflation-in-2025

This article is provided as a free service to you and is for general informational purposes only. Cadence Bank makes no representations or warranties as to the accuracy, completeness or timeliness of the content in the article. The article is not intended to provide legal, accounting or tax advice and should not be relied upon for such purposes.