Smart strategies to fight back against inflation

Few economists predict we’ll return to the double-digit price increases of the late 1970s and early 1980s. But knowing some of the ways consumers coped back then — and how things are different now — can help you formulate a plan to deal with rising prices.

First, a primer: Inflation shrinks your purchasing power, so you need more money to buy the same goods and services. When inflation averages less than 2%, as it did from 2010 to 2020, it would take more than 35 years for prices to double. When inflation averages 5%, which was the annualized rate reported in May, prices would double in less than 15 years. That is a huge deal if you live on a fixed income or are trying to calculate how much you’ll need in retirement.

In my latest for the Associated Press, strategies that may prove helpful.

Tuesday’s need-to-know money news

Today’s top story: Compiling your year-end tax list. Also in the news: What high schoolers need to know about personal finance, smart money moves for uncertain times, and what hip hop can teach us about finance.

Your Year-End Tax To-Do List
It’s not too late to add deductions.

What Do High Schoolers Need to Know About Personal Finance?
More than you’d think.

4 Smart Personal-Finance Moves for Treacherous Times
Preparing for possible impending doom.

10 Personal Finance Tips From Hip-Hop Lyrics
No, you’re not hallucinating.

5 Steps to Consider if You Can’t Afford to Retire
Whatever you do, don’t panic.