NEWS & RESOURCES

Authored by: Bradi Dahmen, Wealth Advisor

If you’ve felt like your dollar isn’t stretching quite as far as it used to, you’re not imagining it. Between grocery bills creeping higher, childcare costs holding steady at jaw-dropping levels, and everyday expenses adding up, inflation has become a daily reality for families. As both a wealth advisor and a mom, I see firsthand how overwhelming this can feel—especially when you’re trying to plan for the future while managing today.

The good news? You don’t have to overhaul your entire financial life to regain a sense of control. Small, intentional adjustments can create stability even when the cost of living continues to rise.

1. Revisit Your Monthly Cash Flow. Start by reviewing what’s changed in the past 12 months.

• Have groceries increased by $50–$100 per month?
• Are extracurricular activities more expensive?
• Did utilities creep up?

A fresh look at your household cash flow helps you identify where adjustments can be made. I often recommend clients build in an “inflation buffer”—5–10% wiggle room in the budget so rising prices don’t derail goals.

2. Prioritize Your Emergency Fund. Inflation adds unpredictability. An unexpected expense is harder to absorb when everything else costs more. Aim for 3–6 months of essential expenses in cash. If that feels out of reach, start with a weekly or monthly transfer—$25, $50, or any amount you can commit to consistently.

3. Check Your Investment Allocation. During inflationary periods, money sitting in traditional savings loses purchasing power more quickly. Review your portfolio to ensure:

• You’re properly diversified
• Your investment strategy aligns with your time horizon and risk tolerance
• You’re taking advantage of tax-advantaged accounts when available

If markets feel confusing right now, you’re not alone. A conversation with your advisor (or starting a relationship with one!) can bring clarity.

4. Use Debt Strategically. High-interest debt becomes even more costly in inflationary environments. Consider:

• Paying down variable-rate or high-interest cards first
• Refinancing when possible
• Consolidating debt to simplify and potentially lower costs

Healthy debt decisions can free up more room in your budget over time.

5. Plan for Big Future Costs Now. Major expenses—like college, home improvements, or replacing a vehicle—won’t be immune to inflation. Setting aside funds today, even in small amounts, helps you keep pace with rising prices. Tools like College Savings Plans or sinking funds work well for these longer-term goals.

Inflation is challenging for every family, mine included. But with proactive planning and a willingness to adjust, you can stay confident in your financial path. If you’re unsure where to start, or just want a second set of eyes on your plan, we’re here to help.

All investing involves risk, including the possible loss of principal. There is no assurance that any investment strategy will be successful. A diversified portfolio does not assure a profit or protect against loss in a declining market.