What are 3 good strategies for dealing with inflation?

1. Don’t expect the government to “fix” inflation.

There are so many things wrong with the “Inflation Reduction Act,” it’s hard to know where to begin. Unfortunately, the writers seem to have stopped working to reduce inflation after drafting the title.

2. Increase income & decrease expenses.

Now is not the time to dip into your savings or start borrowing to maintain your current lifestyle. Instead, look for opportunities to bring in more money and cut unnecessary expenses. Luckily, the government does offer a clear-cut way to do both: Start a business.

If you run a business from your home, you’ll unlock tax deductions on a long list of expenses that are not deductible if you earn your money through a W-2 job. In fact, the tax savings from starting your own business are typically more than your startup costs — meaning the government will literally pay you to start a business. The added cash flow from the business plus the reduction in taxes makes starting a business the easiest way to fight inflation.

3. Stay disciplined.

Inflation isn’t going away anytime soon. That means it’s critical to think strategically about how you approach your wealth and tax strategies. A lot of people are running around with a woe-is-me attitude as if nothing can be done about the current state of the economy. It’s time to change that mindset.

Get with your tax advisor today and identify new strategies that will help you stay ahead of rising costs. You’ll not only weather this downturn, but you’ll also set yourself up to thrive when the economy rebounds.

Looking for more inflation-busting strategies?

At TFW Advisors®, we’ve helped thousands of people worldwide change their mindset about money and taxes … and transform their wealth strategies in the process. Our team would love to help you, too. Schedule a call today! We’re here to help.