3 Moves to Protect Your Money Before Inflation Bites in 2026

Forecasts showing stronger price pressures by 2026 mean it’s prudent to act now rather than scramble later. Investors and households can take three practical steps to protect purchasing power and preserve long-term plans.

1) Favor inflation-protected and short-duration fixed income. Move a portion of cash into Treasury Inflation-Protected Securities (TIPS) or short-duration bond funds to reduce sensitivity to rising rates. ETFs such as iShares TIPS (TIP) or short-term Treasury funds provide inflation linkage or lower duration, which can help preserve yield while limiting price volatility compared with long-term bonds.

2) Strengthen liquidity and reduce rate exposure. Increase your emergency fund to cover several months of essential expenses so rising prices won’t force asset sales at unfavorable levels. Review adjustable-rate loans and consider refinancing into fixed-rate mortgages or personal loans when it makes sense — locking current rates can be an effective hedge if inflation pushes borrowing costs higher.

3) Tilt toward real assets and pricing-power equities. Allocate part of your portfolio to assets that historically keep pace with inflation: commodities, REITs and companies with demonstrated pricing power and resilient margins. Maintain diversification across equities, real assets and inflation-linked bonds to smooth returns across different inflation scenarios.

Execution tips: rebalance gradually to avoid market timing, use dollar-cost averaging for new allocations, and favor low-cost funds to maximize net returns. Check tax implications for income-producing assets and consider tax-advantaged accounts where appropriate. Monitor macro indicators — CPI, PCE inflation, wage growth and central bank communications — to refine timing and size of adjustments.

If you’re unsure which moves suit your situation, consult a financial advisor who can model scenarios tied to your goals, time horizon and risk tolerance. Taking measured, proactive steps now—boosting liquidity, adding inflation-linked instruments and locking variable-rate debt—can reduce the damage higher inflation might inflict in 2026 and help keep long-term financial objectives on track.