When the Government began sending out checks in 2020 while at the same time shutting down the economy, we knew that we would begin seeing inflation by 2021 and beyond. An understanding of what causes inflation is quite simple; an influx of printed money from the government that well exceeds economic output.
My wife and I made the decision to finish remodeling the inside of our 50+ year old house to avoid the additional cost in 2021 and beyond while at the same time reducing our spending by close to $500.00/month. The reduction included no longer going to the restaurant for a date once or twice a month and no Starbucks coffee occasionally. In addition, we reevaluated our entire budget which included our grocery purchases. Also, we put off replacing our second vehicle indefinitely.
As to our income, we are retired. Because of the economy and the market, we decided to reduce withdrawals on our investments to a bare minimum because we knew Federal Taxes will most likely go up. In other words, we have decided to hunker down. I lived through the Carter years, and it took Volker at least two years to get control of the money supply after Reagan became president. The Biden Administration is even worse.
Just a side note, we have been married for 34 years. After we married, we quickly implemented a financial plan (interesting backstory) to (1) pay God first, (2) pay ourselves (saving) (3) get out of debt and remain debt free or use it very wisely (4) live below our means. As a result, we had no need of the checks the government was sending us. They were all were sent back except for one which went to charity (recommended by our tax accountant).