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While global tensions rise and billion-dollar trade battles make headlines, Brianna from Washington, D.C., had a straightforward question for hosts of The Ramsey Show in a clip posted Feb. 24: "Can you explain how President Trump’s new executive order on tariffs will affect me on a personal level?”
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The administration’s imposing tariffs on imported goods has left many ordinary families wondering what it means for their household budget.
Dave Ramsey and co-host Ken Coleman set clear expectations on tariffs: higher costs for everyone.
Supercharging the cost of living
Economists and financial experts broadly agree that the costs of trade barriers and import taxes are eventually passed along to consumers.
“You will pay more, no question about it, 100%," Ramsey said. "Companies do not eat taxes.”
For many Americans, these added costs come at a time when they’re already struggling with high living costs. The good news is that while the Tax Cuts and Jobs Act (TCJA) of 2017 is set to expire on Dec. 31, 2025, President Trump and Congress are considering extending the program.
Either way, consumers should brace themselves for higher costs and more uncertainty in the months ahead. If you’re worried about your household budget, consider bolstering your savings and look for domestic alternatives for essential products.
Here are our four top tips for coping with rising prices.
1. Cut costs where possible
This is a great time to review your budget and look for ways to trim your expenses. Even if your grocery bill is on the rise, some of your essentials may be available for cheaper than you’d think.
For example, shopping around for better insurance rates could save you hundreds of dollars per year. OfficialHomeInsurance.com makes it easy and convenient to browse offers tailored to your needs — from a list of over 200 reputable insurance companies.
Simply fill in a bit of information and quickly find the coverage you want for the lowest possible cost. In just a few clicks, you could save roughly $482 a year. While you’re saving money on home insurance, you may also consider whether your auto insurance is optimized for coverage and expense.
OfficialCarInsurance.com helps you instantly sort through the best policies from car insurance providers in your area, including trusted names like Progressive, GEICO and Allstate. With rates as low as $29 per month, you can find coverage that suits your needs and will also potentially save you hundreds of dollars per year.
To get started, fill in your information and OfficialCarInsurance.com will provide a list of the top insurers in your area.
Read more: Warren Buffett used 8 solid, repeatable money rules to turn $9,800 into a $150B fortune. Start using them today to get rich (and stay rich)
2. Prioritize your emergency fund
You probably already know that it’s recommended to have six months of expenses saved in your emergency fund. But with prices rising, it may be tempting to dip into that savings for purchases that aren’t real emergencies.
To keep your resolve, make sure that cash is still making money by stashing it in a high interest savings account that you can watch grow every month.
To get started, a high-yield account, such as a Wealthfront Cash Account, can be a great place to grow your emergency funds, offering both competitive interest rates and easy access to your cash when you need it.
A Wealthfront Cash Account can provide a base variable APY of 3.50%, but new clients can get a 0.65% boost over their first three months for a total APY of 4.15% provided by program banks on your uninvested cash. That’s over nine times the national deposit savings rate, according to the FDIC’s November report.
With no minimum balances or account fees, as well as 24/7 withdrawals and free domestic wire transfers, you can ensure your funds remain accessible at all times. Plus, Wealthfront Cash Account balances of up to $8 million are insured by the FDIC through program banks.
3. Pay off high-interest debt
If you’re carrying credit card debt or other high-interest loans, you may be losing out on hundreds of dollars a month in interest fees. You can consider paying down this debt and getting more financial freedom with a reverse mortgage.
Reverse mortgages let you tap into your home equity to supplement your income, pay off substantial debt or fund renovations. You can choose to borrow the funds as a lump sum or fixed monthly payment — and can spend it however you want.
Check out this list of industry-leading companies offering reverse mortgages on Money.com.
Compare offers instantly and request a free information guide to help you understand how to get started.
4. Continue to invest
While you may see some of your investments shrinking, a market downturn is a great time to begin investing — as the stock market is cyclical and stock prices have historically bounced back after major dips.
If you’re new to investing and feel that you need a great deal of time or money to get started, you may be surprised to learn that you can open an investment account with pennies on the dollar — literally!
Acorns is an automated investing and saving platform that simplifies the process of setting aside extra funds.
When you sign up and link your bank account, Acorns automatically rounds up the price of each of your purchases to the nearest dollar and deposits the difference into a smart investment portfolio for you, allowing you to grow your wealth without even thinking about it.
Plus, if you sign up now, you can earn a $20 bonus investment.
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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.