65% of Americans earning $100,000 or more are ‘very concerned’ about inflation, new CNBC poll finds

Even individuals who make six figures a year worry about inflation, which is having an effect on how they choose to spend their money.

According to a Morning Consult/CNBC poll conducted last week among 1,000 U.S. adults who make at least $100,000 annually, 96 percent of those high earners are worried about inflation and 65 percent are “extremely concerned.”

According to 34% of respondents, their financial situation is worse now than it was a year ago, and 46% have had to reduce household spending as a result of inflation, according to the survey. 38 percent of people plan to reduce their spending if inflation worsens.

A senior director at TIAA and certified financial adviser Shelly-Ann Eweka stated, “It’s absolutely a wakeup call.”

They worry about what it will mean for them in the future and how we will manage our lifestyles if costs stay as they are.

Over the past year, consumers have paid higher costs for everything, including petrol, food, and housing, costing households hundreds of dollars more each month. The Consumer Price Index, which tracks changes in the cost of goods for consumers, increased by 8.6 percent in May, the most since 1981. On Wednesday, the most recent report is scheduled for release.

According to the survey, people are most likely to cut back on eating out, followed by entertainment away from home and travel.

When will inflation slow down?

Economists predict that lowering inflation will take some time.

Jared Bernstein, a member of President Joe Biden’s White House Council of Economic Advisors, noted that the Russian invasion of Ukraine, a constricted supply chain, and high demand have all contributed to inflation.

The demand component is really lagging, according to the most recent study, Bernstein said on “Squawk Box” on Monday.

He continued, “The supply chain limitations are still present, [but] they’re dramatically loosening up.” Putin’s price increase is still a major factor and is having a negative impact on both the real economy and the markets.

Assess your financial situation

The first step you should take to navigate increased pricing is to gain control of your financial condition.

Consider your income, your spending, and the kind and total of your debt.

The only things we have control over are our costs, our financial decisions, and the choices we make, according to Eweka.

Other crucial protections to put in place right away include safeguarding your income with disability insurance coverage and your budget by building up your emergency cash reserves.

Look at ‘needs’ versus ‘wants’

Break down your spending into needs and wants after you’ve noticed where your money is going, then start reducing the optional expenses, advised CFP. The company’s creator and director of financial planning is Carolyn McClanahan, who is based in Jacksonville, Florida.

In actuality, according to McClanahan, a physician, eating out frequently not only costs more money than cooking at home, but it’s also less nutritious. Use coupons and price comparison when shopping for groceries to reduce costs.

There will be times when you are pressed for time and tempted to order delivery for dinner. On Sundays, McClanahan prepares large quantities of food and freezes it for certain nights.

Gas savings can be achieved through carpooling, organizing road trips to reduce the amount of travel, and, if possible, working a few days a week from home.

Check your credit card for regular charges like subscriptions as well. She suggests canceling the service if you aren’t using the membership to its maximum potential.

Although it is normal to worry about the cost of goods and services increasing, you have no influence over this and obsessing about it is bad for your health, according to McClanahan, a member of the CNBC Financial Advisor Council.

She advised, “Only consider the things that you can manage.”

The only thing you can do to lessen the impact of the outside world on you is to ensure that you are spending your money wisely.

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