As inflation squeezes household budgets and costs climb for housing, food, energy, and travel, Americans seek practical financial stability strategies. According to Jeffrey Fratarcangeli, founder & CEO of Fratarcangeli Wealth Management, the solution isn't flashy—it's about returning to fundamentals.
“We talk about the basics all the time with our team and with our clients,” says Fratarcangeli. “It starts with a clear understanding of what’s coming in, what’s going out and what you actually need to survive each month.”
Jeffrey Fratarcangeli, a leading wealth manager, recommends these foundational strategies to handle inflation with clarity and control:
Know Your Financial Baseline
Before tackling costs, define your financial baseline.
“What’s your real income each month?” Fratarcangeli asks. “Not just your paycheck – include rental income, side business revenue and any variable earnings. Then compare that to your actual monthly spending. Where’s the money going?”
This isn't about judgment—it's about data. Track spending on food, gas, utilities, streaming services, and childcare to identify exactly where inflation hits hardest.
“The point is to identify discretionary income,” he explains. “That’s what lets you build in liquidity and cushion for future cost increases.”
Apply Corporate Discipline
Jeffrey Fratarcangeli and Fratarcangeli Wealth Management advise high-net-worth clients to prioritize budgeting as essential for long-term financial planning—a principle that applies at any income level.
“A good budget gives you options, not limits,” Fratarcangeli notes. “Know your numbers. Track them monthly. Build a system for how you spend and save.”
He suggests managing household finances with business principles: track income, monitor expenses, adapt to changes, and maintain contingency plans.
Expand Your Safety Margin
A key strategy Fratarcangeli recommends during inflation or uncertainty: maintain more cash reserves than you believe necessary.
“Have six months’ worth of fixed costs available, maybe more if your income is irregular,” he says. “That’s not just to cover emergencies. It’s about giving yourself breathing room to make smart decisions instead of reactionary ones.”
When confronting rising costs or surprise expenses, this cushion transforms potential crisis into manageable situation.
Rationality Over Reactivity
Even high-net-worth clients, Fratarcangeli notes, alter their financial behavior during economic instability.
“Maybe they were going to buy that discretionary item - like a second home - and now they’re hesitating,” he says. “It’s not always a change in financial capacity; it’s a change in mindset.”
This psychological shift affects both business owners and consumers, slowing purchases, production, and inventory cycles. Fratarcangeli emphasizes that emotional decisions—particularly from fear or greed—rarely create effective long-term strategies.
“We all feel it. I feel it. But it’s important to catch yourself, remove the emotion and fall back on the plan you’ve already made.”
Commitment Creates Results
Handling rising costs doesn't require immediate lifestyle transformation—instead, regularly reassess your goals, income, and spending patterns.
“Look at what you need to survive. Understand your short-term goals and align your budget with those goals,” Fratarcangeli says. “Then keep your eye on the long game. That’s how we do it with clients, and it’s how anyone can stay ahead of rising costs.”
For more insight from Jeffrey Fratarcangeli, visit www.fratarcangeliwealth.com.
