Mar 17, 2026
President Donald Trump declared victory on the cost-of-living front amid cooling inflation during a speech in Georgia on Feb. 19.
“What word have you not heard over the last two weeks? Affordability,” Trump said during a public appearance at the Coosa Steel plant in Rome (1). “Because I’ve won. I’ve won affordability.”
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Although it’s true there’s been a recent cool-off in the consumer price index — annual increases fell from 2.7% in December to 2.4% in January while holding steady in February — Americans reported feeling more pain over the last year. (The prospect of a prolonged war in Iran adds an element of uncertainty, too.)
A survey from Resume Now, a resume-building platform, found the ability to afford the basics worsened for nearly 4 in 10 (39%) Americans in 2025 (2). A further 35% say it stayed the same, while 26% reported an improvement.
Cost-of-living crunch
What’s driving affordability concerns? According to Resume Now, the cost of everyday necessities was the most common source of stress, cited by 65% of survey respondents, followed by housing costs at 42%, retirement savings at 38% and health care costs at 37%.
In terms of essentials, 40% reported cutting back on groceries, while 21% did so when it came to health care visits and prescriptions. Nearly everyone (92%) cut back on spending overall in 2025.
Only 12% of survey respondents say their pay kept up with rising costs. Furthermore, 49% dipped into their savings to survive, while 42% delayed major purchases, 24% took on debt and 22% borrowed from family or friends.
Some of these figures signal “a broader affordability crisis,” according to the report. “The gap between income and cost of living is now impacting both short-term survival and long-term financial stability.”
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Shore up your finances
Slower inflation doesn’t necessarily translate into lower prices. Rather, it means that prices are rising more slowly. But until wage growth matches rising costs, or more, many Americans could still feel squeezed.
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So, it’s a good time to reassess your fixed monthly expenses. Are there any areas where you could cut back? Could you renegotiate any of your bills or loans for a lower rate? Could you pick up extra hours at work or take on a side gig to bring in extra income?
From there, prioritize debt reduction. Consider that if you use a high-interest credit card to buy groceries and can’t make the minimum monthly payments, you’ll end up paying far more for those groceries over time due to interest. Popular methods to pay off debt include the snowball method (pay your debts from smallest to largest balance) or the avalanche method (pay your debts from the highest to lowest interest rate).
If you don’t have an emergency fund or had to dip into it over the past year, focus on building or rebuilding your savings to buffer ongoing cost volatility. Aim to save at least three to six months’ worth of expenses.
If you’re wondering why affordability doesn’t seem to match up with headline numbers, you’re not alone. For a significant share of Americans, that math still feels tight.
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Vawn Himmelsbach is a veteran journalist who has been covering tech, business, finance and travel for the past three decades. Her work has been featured in publications such as The Globe and Mail, Toronto Star, National Post, Metro News, Canadian Geographic, Zoomer, CAA Magazine, Travelweek, Explore Magazine, Flare and Consumer Reports, to name a few.
