Inflation-Proof Your Life: 7 Smart Money Moves to Make When Prices Are High

What inflation actually means for your wallet

Inflation is the gradual rise in prices over time, which means each pound buys a little less. When inflation is high, everyday costs — energy, food, transport — climb faster than usual, squeezing household budgets. For UK households, this often shows up as rising grocery bills, pricier petrol, and higher mortgage or rent costs. The key to staying afloat is adjusting your spending, protecting your income, and finding ways to keep more of what you earn.

1. Audit your essentials and cut invisible leaks

Start by listing your non-negotiables: housing, utilities, council tax, food, transport, and insurance. Then track the "small stuff" for two weeks — coffees, meal deals, streaming services, unused gym memberships. These quiet drains add up quickly when prices are high.

• Cancel subscriptions you forgot about or rarely use.
• Switch to own-brand products where quality matches your needs.
• Set spending caps for categories like takeaways or entertainment.
• Review mobile, broadband, and insurance contracts — loyalty rarely pays.

Even trimming £30–£50 a month frees up breathing room. If you're new to tracking spending, see our guide on creating a budget you'll actually stick to.

2. Lock in fixed rates where possible

When inflation is rising, variable-rate products — energy tariffs, credit cards, some loans — can become more expensive without warning. Look for opportunities to fix costs:

• Compare fixed-rate energy deals if you're still on a flexible tariff.
• If you're remortgaging soon, consider fixing your rate to shield yourself from further base rate rises.
• Transfer high-interest credit card balances to a 0% intro APR card if you qualify — you'll pause interest charges while prices climb elsewhere.

Fixed rates give predictability, which is gold when everything else feels uncertain.

3. Build (or rebuild) your emergency buffer

An emergency fund is your first line of defence against inflation shocks — boiler repairs, car breakdowns, or unexpected job changes. Aim for £500–£1,000 to start, then build towards three months of essential spending.

• Automate a small transfer on payday, even if it's just £10–£25.
• Keep it separate from everyday spending so you're not tempted to dip in.
• Use a high-interest savings account or instant-access pot to earn something while it sits there.

When prices are high, having a buffer means you can handle surprises without turning to expensive credit. For more foundational steps, read our article on money management for beginners.

4. Rethink how you shop for food

Food inflation hits hard because you can't skip groceries. Small changes make a big difference:

• Plan meals around what's on offer or in season.
• Batch-cook and freeze portions to reduce waste and takeaway temptation.
• Try discount supermarkets or "wonky veg" boxes for quality at lower prices.
• Buy store-brand staples — flour, pasta, tinned goods — instead of premium labels.
• Use loyalty schemes and cashback apps to claw back a few pounds each month.

You'll eat just as well while keeping more money in your pocket. Reducing impulse buys also helps; see ditching impulse buys through mindful spending for more tips.

5. Increase your income (even modestly)

When costs rise, earning even a little more can offset the squeeze. Consider:

• Asking for a raise if your performance and market rates support it. Our guide on how to ask for a raise walks through the process.
• Taking on freelance work, tutoring, or delivery shifts during evenings or weekends. Read more about side hustles and second jobs.
• Selling unused items online — electronics, clothes, furniture — to generate quick cash.

Even an extra £100–£200 a month can rebuild your buffer or accelerate debt repayment while inflation runs high.

6. Tackle high-cost debt strategically

Inflation often brings higher interest rates, making existing credit card or loan balances more expensive. Focus on reducing what you owe:

• Pay more than the minimum on credit cards whenever possible.
• Use the avalanche method (highest rate first) or snowball method (smallest balance first) to stay motivated.
• Consider consolidating multiple balances with a fixed-rate personal loan if it lowers your overall cost and simplifies payments.
• Explore balance transfer cards with 0% intro periods to pause interest while you chip away at the principal.

The less you carry, the less inflation can hurt you. For a comprehensive approach, see getting out of debt.

7. Adjust your goals — but don't abandon them

Inflation can delay big plans — house deposits, weddings, travel — but it doesn't have to derail them. Revisit your timeline and amounts:

• If you were saving £200 a month, try £150 and keep the habit alive.
• Break big goals into smaller milestones so progress feels achievable.
• Use high-interest savings accounts or fixed-term bonds to protect purchasing power while you save.
• Celebrate small wins — every £50 saved is £50 you didn't lose to rising costs.

Flexibility is key. For more on goal-setting during uncertain times, read setting financial goals.

Practical example: protecting a £2,400 monthly budget

Imagine you bring home £2,400 a month. Essentials (rent, council tax, utilities, food, transport) total £1,850. You notice groceries and energy climbing faster than expected. You cancel two unused subscriptions (£18), switch to a fixed energy deal, and start meal planning to trim £40 from your weekly shop. You automate £50 a month to a high-interest savings account and redirect another £30 towards your highest-rate credit card balance. After three months, your emergency buffer grows to £150, your debt drops by £90, and you've absorbed price increases without panic.

The takeaway: small, repeatable adjustments add up fast. You don't need perfection — you need consistency and a plan that fits your reality.

Your next steps

• Review your subscriptions, contracts, and variable-rate products this week.
• Set up an automated transfer to savings — even £10 is a start.
• If you carry high-interest debt, explore balance transfer options or consolidation loans.
• Track spending for two weeks to spot invisible leaks.
• Explore more personal finance strategies in our Personal Finance section.

Final thought: inflation squeezes everyone, but you have more control than you think. Start with one move this week — lock in a rate, trim a subscription, or automate a small saving — and build from there. Consistency beats perfection every time.