Inflation is the decrease in how much you can buy with the same amount of money over
time. This decrease in purchasing power is a result of rising prices. Inflation can
make personal finances more difficult to manage.
As prices increase, people who previously had disposable income will find their budgets
getting tighter and will have less flexibility with their spending. The most effective
way to manage finances during high levels of inflation is to create a strict budget
and eliminate as much discretionary spending as possible. After that, there are some
small steps you can take to blunt inflation’s impact.
