The current inflation rate is now 8.58%, and Americans are cutting back on spending through strategies ranging from coupon stacking to purchasing store brand items. GOBankingRates asked some of our Top 100 Money Experts for their best tips on how to fight inflation.
From cutting back on non-essentials to creating a financial plan, fight inflation with these expert recommendations.
Start Making Tough Spending Decisions
"Start making tough spending decisions," said Liz Claman, host of "The Claman Countdown" at FOX Business News.
"Go through your daily spending, write it all out, and then slash and burn. Downgrade to less expensive products. Cut out subscriptions you're not using enough. Delete apps that cost money -- even if it's just a few bucks. During COVID-19 lockdowns all the nail salons closed. I have friends who started doing their own nails and got so good at it, they haven't gone back to the salon. That's a weekly savings of $30 dollars. Everything adds up."
Cut Back on Non-Necessities
"Cut back on the non-necessities and find ways to increase your income," said Tonya Rapley, author of "The Money Manual."
Put Your Money Into I Bonds
"Right now, putting your money into Treasury I Bonds, investing in real estate or other alternative investments are the best ways to fight the impacts of inflation," said Danetha Doe, the creator of Money & Mimosas, a website that helps investors.
Add to Your Emergency Fund
Money and career expert Tori Dunlap is the founder of Her First $100K, host of the "Financial Feminist" podcast and author of the upcoming book "Financial Feminist."
"Inflation is happening and it's causing a lot of uneasiness as people prepare for a possible recession," Dunlap said. "Whether or not that happens, there are simple tips you can implement into your life to improve your financial health. I recommend adding to your emergency fund if possible, cutting extra expenses from your budget, negotiating to lower your bills and working on diversifying your income."
"Invest, invest, invest!" said Mandi Woodruff-Santos, co-host of the popular podcast "Brown Ambition."
Be Aware of the Risk of Multi-Sector Rallies
"Changing rates could mean that hard assets diverge from soft assets in other directions, so be aware of the risk of multi-sector rallies or slumps," said Sam Bankman-Fried, founder and CEO of Alameda Research and FTX. "Don't rely on traditional hedges working in your portfolio, and make sure you budget for the potential of increased prices."
Have a Financial Plan That Already Accounts for Inflation
Ramit Sethi, financial educator and owner of IWillTeachYouToBeRich.com, said a much better approach to fighting inflation is to have a financial plan that already accounts for rising prices.
"The way to beat inflation is to invest," Sethi said. "At least 10% of your money should be going to investments, automatically, every month. If you're doing this, then you will be beating the effects of inflation over the long term."
He added, "What you will see most people doing is looking at the headlines in the news, panicking and then making frazzled decisions. Those same people will be making frazzled decisions today, tomorrow and for the rest of their lives. I don't want that for you."
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This article originally appeared on GOBankingRates.com: Here’s What Everyone Should Be Doing To Fight Inflation, According to the Top Money Experts