5 Ways Rising Costs Are Quietly Changing How People Plan Their Futures
In an ideal world, planning for the future would be straightforward. You’d work hard, save wisely, and invest strategically. But unfortunately, you live in a world where the costs of everyday items — from big-ticket purchases to smaller buys like groceries — feel like they’re only getting higher. As a result, you may be rethinking how you plan for the years to come.
When MoneyLion talked to financial experts, we found that you’re in good company: Many other Americans are adjusting their future plans based on today’s economic reality. Here’s how rising costs are quietly reshaping those plans.
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1. There’s an Emphasis on Short-Term Stability
According to Sherman Standberry, CPA, and CEO of My CPA Coach, rising costs have forced many people to prioritize short-term stability — such as staying on top of bills, debt, and unexpected expenses — even if it means forgoing goals that would benefit their future selves.
“Long-term goals such as investing and retirement contributions are still important, but they become less important when cash flow feels uncertain,” Standberry said.
2. People Are Forgoing Life Milestones Because of Finances
As a CPA, Standberry has also noticed many people delaying major life milestones, such as buying a house, starting a family or even retiring, because of their financial circumstances. He said one of the major drivers of this shift is the gap between income growth and the cost of living.
“The biggest common theme I see is housing affordability,” Standberry said. He added that many people lack confidence in buying a home, citing elevated mortgage rates and high home prices.
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Standberry also pointed to the rising cost of childcare as a major factor in people delaying or even declining to expand their families. People who want to be parents may also question whether they can afford to leave the workforce, even temporarily.
On the other end of the life-milestone spectrum, aging adults may also postpone retirement because, Standberry said, their savings can’t keep pace with inflation.
3. Younger Generations Are All About Side Hustles
In addition to walking away from traditional milestones of adulthood, Standberry said younger people are also responding to rising costs by embracing side hustles with increased vigor.
“Younger generations are diving into side hustles, digital income streams, and investing earlier in smaller amounts,” Standberry said. “But, in the same breath, they're competing with rising costs, which influences their decisions when it comes to how to prioritize finances.”
4. There’s an Increased Emphasis on Budgeting
One word that Adam Spiegelman, CFP, founder and wealth advisor at Spiegelman Wealth Management, has heard more lately is “budget.” Spiegelman said people are talking more about budgeting — even if they’re starting out with only a vague sense of what they’re actually spending.
Curiously, Spiegelman added that few people are sticking to a formal budgeting approach.
“From a big-picture standpoint, I think that’s fine,” he said. “As long as you're saving consistently and have a handle on the major categories, you don't need a line-item spreadsheet to stay on track.”
5. People Are Building Up Cash Reserves
Spiegelman identified another meaningful shift in response to increased costs: People are building cash reserves to cushion themselves against uncertainty.
“There’s a real undercurrent of anxiety about a potential downturn that people have been anticipating for years,” Spiegelman said. “So, whether it’s conscious or not, more people are making sure they could survive six months, a year or longer without needing to sell investments at a bad time.”
He said this shift — which he calls “building a real liquidity buffer” — is evident across different types of clients.
The Bottom Line
You don’t need to watch news reports to know that costs are increasing. You only have to visit a grocery store or stop at a gas pump. Many people share your concerns, and it’s reshaping how they plan for their financial futures — and their lives.
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This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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