Here's How Much Extra Consumers Are Spending Because of Inflation

Inflation is costing consumers in many ways. Read on to see just how much it's hurting their wallets.

Inflation has been wreaking havoc on consumers since the latter part of 2021. And at this point, it's fair to assume that Americans will still be grappling with high levels of inflation at the start of 2023. 

Just how bad have things gotten? Higher living costs are forcing consumers to spend an extra $433 a month on average, reports Moody's based on data from October's Consumer Price Index. And that's a big jump for a lot of people.

Of course, just because Americans are spending an extra $433 a month doesn't mean they're earning an extra $433 a month. While wages have picked up this year, they've lagged behind inflation. So at this point, that extra spending is coming in the form of credit card balances for a lot of people.

Any time you run into a situation where your spending keeps rising, to the point where you're consistently racking up debt, you might hear that it's time to cut back on spending. That's reasonable advice during periods when living costs are, well, reasonable. 

But right now, living costs are sky-high. And while you can cut back on things like streaming services and takeout, many people are running up debt month after month without spending money on those extras. Rather, they're accruing debt in the course of keeping up with basics like food, housing, and transportation.

If your debt load keeps growing due to inflation, you may not be able to cut your spending. And your paycheck at work may not be enough to make up the difference. But in that case, there's one potential solution worth looking at.

Is it time for a second job?

Working a second job into your schedule may be a difficult thing to do. But if you're spending somewhere in the ballpark of $433 extra a month on the same expenses you've always had, it may be the only way to break the cycle of debt.

The good news is that the gig economy is still thriving, so there's plenty of opportunity to pick up a second job you can do on top of your main one. And you may even be able to find a side job that's flexible. 

For example, some side gigs let you work from home. Others don't do that, but they do let you set your own hours -- think driving for a ride-hailing service.

A second job could make it possible to better keep up with your bills. And if you've accrued debt due to inflation, those extra earnings could help you chip away at it sooner so you can minimize your interest charges. 

When will inflation levels cool off?

That's the big question. In recent months, the rate of inflation has been slowing, so there's reason to be hopeful we won't be stuck with sky-high expenses forever. But we may not get meaningful relief from inflation for a good number of months. So if you've been spending a lot extra and struggling because of that, it may be time to come to terms with the idea of getting a second job -- at least on a temporary basis.