Dollars & Sense: Strategies for Combating the Impact of Inflation

Dr. Harold Wong

In 2022 the U.S. inflation rate hit the highest since 1981. According to U.S. Labor Department data, the annual inflation rate was 7.1% for the 12 months ending in November, 2022. Some reports indicate that 60-70% of American families are living paycheck to paycheck. Before the November 2022 election, surveys showed that inflation and the economy were the number-one issues to voters. So, what are potential strategies that you can use to fight how inflation affects your family?

Reduce your housing expense by renting out part of your house via Airbnb, Vrbo, or a normal lease! I have one client, a nurse practitioner, who rents out part of her house for $1,500 a month on a one-year lease. Another client, a psychologist who works with veterans, spent $100,000 to build a casita by the pool at his house. He expects to receive $30,000+ a year of annual rent. Note: please check with your city and HOA first to find out if there are any restrictions on short-term rentals.

Reduce your income tax through green energy equipment strategies! Especially with the new Inflation Reduction Act, which has allocated at least $370 billion of grants and loans for green energy technology, there are opportunities. In one solar equipment leasing strategy, the client saves half of his investment amount in taxes. There is nothing more powerful in the Tax Code than a 30% solar tax credit and the ability to deduct 85% of the cost of equipment through either Section 179 or 100% “bonus” depreciation. For many upper-middle-income families, income taxes are the single biggest expense item, even exceeding housing costs.

Increase the income from your investments! The average dividend yield from S&P 500 companies from Jan. 1, 2000, through Dec. 31, 2022, has averaged 1.98%. One has the risk of having to own the stock in order to receive the dividend. Until the spike in interest rates during the past year, 2% was what one received from buying a 10-year or 30-year U.S. Treasury Bond. There are equipment leasing, real estate investment, and private pension strategies that can generate a 7-10% annual yield, with less risk than the stock market. However, few have invested in assets other than Wall Street stocks, bonds, and mutual funds, so there is a time period required to get educated and feel comfortable. Always research any investment carefully.

Attend my Free Live Seminar and lunch on Saturday, Feb. 25, at Hyatt Place, 3535 W. Chandler Blvd., Chandler, AZ 85226. The seminar is from 10 a.m. to noon, followed by a Free catered lunch. The topic is “Beat Inflation by Saving Taxes and Increasing Income!”

To RSVP for the seminar or schedule a free consultation, please contact Dr. Harold Wong at 480-706-0177 or [email protected]. His website is

Dr. Wong earned his Ph.D. in Economics at University of California/Berkeley and has appeared on over 400 TV/radio programs.