For years, financial wisdom stayed pretty steady. Save a set amount each month. Buy in bulk. Stick to low-interest debt.
But the last few years changed the rules.
With inflation affecting prices for groceries, rent, and utilities, some of those once smart money habits might actually be working against you.
Here are eight common money moves that used to make sense but could now be costing you.
1. Keeping Too Much in Savings
It used to be smart to build up a big savings cushion. While that’s still important for emergencies, parking too much cash in a regular savings account now means you’re losing buying power over time.
According to the Bureau of Labor Statistics Consumer Price Index (CPI) data, prices increased by approximately 17.4% from January 2020 to December 2023.
Most traditional savings accounts still earn less than 1% interest, so your money can’t keep up with inflation.
Instead of letting extra cash sit, consider moving some of it into a high-yield savings account or a short-term certificate of deposit (CD).
If you have a longer timeline, low-cost index funds or Treasury bonds could help your money grow faster than inflation.
2. Buying in Bulk Automatically
Buying in bulk used to be a clear way to save, especially for families. But with food prices changing so often, stocking up can sometimes result in wasted money.
Perishable items might go bad before you use them, or prices could drop right after you buy.
The U.S. Department of Agriculture reports that the average American household throws away about $1,500 worth of food each year.
If you’re paying higher prices up front and wasting some of it, you’re not really saving.
Now, it’s smarter to compare unit prices and buy in bulk only for items you know you’ll use before they expire.
3. Sticking With Fixed Budgets
Before inflation, a set monthly budget made planning easy. But today, fixed budgets that don’t adjust for rising costs can result in shortfalls.
For example, if your grocery or gas spending rises 10% but you’re still budgeting last year’s numbers, you may end up overspending or dipping into savings.
It helps to review your budget every few months and adjust for current prices.
Many financial advisors recommend using percentage-based budgets—allocating, for instance, 50% for needs, 30% for wants, and 20% for savings—so the numbers flex with your income and expenses.
4. Paying Off Low-Interest Debt Too Quickly
In the past, paying off debt early was almost always the right move. But if your loan carries a low, fixed rate and inflation is high, it might make sense to slow down.
For example, if your mortgage has a 3% interest rate, and inflation is over 4%, your debt is technically shrinking in real value over time.
In 2021, the average 30‑year fixed mortgage rate was about 3.15%
In that case, putting extra cash toward investments that earn more than 3% could result in higher long-term gains.
That said, high-interest debt like credit cards is still worth tackling fast. Those rates usually far exceed inflation.
5. Avoiding the Stock Market
Many people pulled back from investing after the market volatility of the early 2020s.
But keeping money out of the market for too long can mean missing out on growth that offsets inflation
Inflation makes it risky to rely only on savings. Even modest, diversified investing can help maintain purchasing power over time.
If you’re nervous about market swings, consider dollar-cost averaging, investing smaller amounts regularly instead of all at once.
6. Clinging to Brand Loyalty
Before inflation surged, sticking to the same brands felt reliable. Now, name brands often charge significantly more for the same quality you can find in store-brand products.
Consumer Reports has repeatedly found that many store brands are produced by the same manufacturers as name brands, just with different labels.
“Of the 70 store-brand products in our test, 76 percent tasted just as good as the name brand,” said Amy Keating, RD, in Consumer Reports.
Being flexible about brands, especially for household staples, can result in noticeable savings over a year.
Compare prices on each trip and keep an open mind, small switches can add up.
7. Ignoring Your Paycheck Value
For years, employees were told to be grateful just to have steady work.
But with prices rising faster than wages in many sectors, staying quiet about pay can cost you real money.
Your paycheck may not go as far as it used to.
If it’s been more than a year since your last raise, it’s worth checking pay data for your role.
The Bureau of Labor Statistics and sites like Glassdoor and Payscale can show current averages, helping you make a solid case for a cost-of-living adjustment.
8. Delaying Major Purchases Indefinitely
Conventional advice says to wait for prices to drop before making big purchases.
But in today’s inflationary climate, waiting too long can result in paying more later.
If you’ve saved enough and your purchase is necessary, waiting may not always pay off.
Instead, compare financing options, look for manufacturer incentives, and focus on timing within the year, like end-of-model sales, to get the best deal.
Rethink the Rules: What Still Works in a High-Inflation World
The money habits that worked just fine a few years ago might not hold up as well today. Inflation has changed how far your dollar goes, so it’s worth taking another look at how you handle your finances.
That doesn’t mean starting from scratch. It just means adjusting what you already do to fit today’s reality.
Even small tweaks, like updating your budget more often or moving money to better-yielding accounts, can help you stay ahead of rising costs.
The goal is still the same: financial stability. But getting there might take a slightly different path now.