Although the inflation rate dropped 0.6% in July from its June peak, prices are still high. And Americans can feel it in everyday life, from gas to grocery prices to travel costs.
There will likely be difficult times ahead, says Lauren Simmons, a 27-year-old former stock trader on track to earn $1 million this year. "It's just reality," she tells CNBC Make It. And Americans should be prepared.
Fortunately, Simmons also has clear-cut advice on how to minimize the negative impact of inflation. "How do you prepare? Sticking with your basics," she says.
First, make sure you have an emergency savings fund and that you are not adding to any current credit card debt. Your emergency fund should be able to cover three to six months of your daily expenses.
Next, make a budget and stick to it, especially considering how much prices are rising across the board. "Everyday living has gone up," Simmons says. The price of gas has gone up 44% year over year, and overall prices for consumer goods were up 8.5% as of July.
You'll probably have to make sacrifices, Simmons says. You may not get to dine out as much as you like or take that trip you've been looking forward to. But, "Fiji isn't going anywhere. Mexico isn't going anywhere. These vacations will still be there."
By keeping on track with a budget and having emergency money put away, you should be OK, even as inflation persists, says Simmons. And as history has proven, this will not be permanent.
"We know how to get through this," Simmons says. "We have to get through at least two more years and then we'll be coasting."
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