Inflation is when prices rise, meaning your money doesn’t buy as much as it used to. Inflation is not always bad. When it stays around 2%, inflation can mean the economy is healthy. But when it grows too fast or unexpectedly, it can feel like things are out of control.
Unfortunately, there’s not much you can do about inflation. Instead, it’s helpful to focus on what you can control, like using a budget to wrangle your expenses, spreading out your risk when you invest, or maybe putting off that big purchase until inflation has had a chance to cool.