8 Ways to Combat Inflation in 2023

Inflation has been in the news for the better part of the past two years, and it's showing no signs of going away. While we can't control inflation, we can control how we react to it.

What is inflation? Inflation is a persistent increase in the overall price level of goods and services in an economy over an extended period. It's typically measured as an annual percentage, representing the rate at which the purchasing power of a currency decreases. Inflation can occur for various reasons, such as increased demand for goods and services, rising production costs, or changes in monetary policy.

The effects of inflation can significantly impact everyday people.

As the prices of goods and services rise, consumers often find that their money doesn't go as far as it used to, which means they need more money to maintain their standard of living. This can reduce purchasing power, eroding the value of savings, pensions, and fixed-income investments.

Additionally, inflation can disrupt economic stability, making it challenging for individuals and businesses to plan for the future.

On the other hand, moderate inflation can also be a sign of a healthy economy, as it encourages spending and investment, but excessive or unpredictable inflation can cause uncertainty and financial stress for individuals and households.

Managing inflation is a complex task for governments and central banks, as they must balance controlling inflation and promoting economic growth.

How can we keep inflation from eating away more of our money in 2023?

8 Tips to Combat Inflation in 2023

How to Combat Inflation in 2023
Image Credit: Shutterstock

Tip #1: Shop around for the best deals. Inflation can make it tempting to buy the first thing you see, but it's important to shop around and compare prices. You can use online tools like Google Shopping or PriceGrabber to find the best deals on the items you need.

Related: Don't only buy name-brand products, as they are more expensive than store brands. And you might be surprised at how many store-brand products are made in the exact same factories, and by the same people, as the pricier name-brand versions.

Tip #2: Buy in bulk. If you can afford to, buying in bulk can save you money in the long run. This is especially true for items that you use frequently, such as toilet paper, paper towels, and laundry detergent.

Tip #3: Cook at home more often. Eating out can be expensive, especially when inflation is high. Cooking at home is a more affordable way to eat, and it can also be healthier.

Here are some tips on how to make cooking at home easier:

  • Plan your meals and make a grocery list. This will help you avoid impulse purchases and make sure you have everything you need on hand.
  • Keep a well-stocked kitchen. This means having basic pantry staples like flour, rice, pasta, canned beans and tomatoes, and spices. It also means having some basic cooking equipment like a good chef's knife, a cutting board, a saucepan, and a frying pan.
  • Use simple recipes. There are many great recipes out there that are easy to follow and don't require a lot of time or effort.
  • Take advantage of cooking appliances. Many appliances, such as slow cookers, pressure cookers, and air fryers, can make cooking easier.
  • Pre-prep ingredients. This can save you time when you're ready to cook. For example, you can chop vegetables ahead of time or cook rice or pasta in advance.
  • Repurpose leftovers. Don't let food go to waste. Leftovers can be used to make new dishes, such as soups, salads, or casseroles.
  • Get creative. Don't be afraid to experiment with different recipes and ingredients. The more you cook, the better you'll get at it.
  • Have fun! Cooking should be enjoyable. If you're not having fun, you're less likely to stick with it.

Tip #4: Grow your own food. If you have the space, growing your own food is a great way to save money on groceries. Even a small garden can produce a significant amount of food.

Tip #5: Cut back on unnecessary expenses. Look closely at your budget and see where you can cut back. This could mean canceling unused subscriptions, eating out less, or finding cheaper alternatives to your current expenses.

Tip #6: Get a side hustle. If you struggle to make ends meet, getting a side hustle can help you bring in some extra cash. There are many different side hustles that you can do, such as driving for Uber or Lyft, delivering food for DoorDash or Instacart, or starting a blog.

Tip #7: Invest your money. Inflation can erode the value of your savings over time. Investing your money can help you grow wealth and protect it from inflation.

Tip #8: Talk to your financial advisor. Talk to your financial advisor if you're unsure how to combat inflation. They can help you create a plan that's right for you.

These are just a few tips on how to combat inflation in 2023. By following these tips, you can help protect your finances and ensure that inflation doesn't have a major impact on your life.

In addition to these tips, there are also some things that governments and businesses can do to combat inflation.

These include:

  • Raising interest rates. This can make it more expensive for businesses to borrow money, slowing down the economy and helping to bring down inflation.
  • Increasing taxes. This can also help to reduce demand and bring down prices.
  • Releasing oil from strategic reserves. This can help to lower gasoline prices.
  • Increasing the supply of goods and services. This can help to meet demand and keep prices from rising too high.

The best way to combat inflation is to combine these approaches.

By working together, governments, businesses, and individuals can help to keep inflation under control and protect the economy.

Steve Adcock is an early retiree who writes about mental toughness, financial independence and how to get the most out of your life and career. As a regular contributor to The Ladders, CBS MarketWatch and CNBC, Adcock maintains a rare and exclusive voice as a career expert, consistently offering actionable counseling to thousands of readers who want to level-up their lives, careers, and freedom. Adcock's main areas of coverage include money, personal finance, lifestyle, and digital nomad advice. Steve lives in a 100% off-grid solar home in the middle of the Arizona desert and writes on his own website at SteveAdcock.us.