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Rampant inflation has cooled off significantly in America. While it remains slightly elevated, the Federal Reserve dropped the rate from 4.5% to 4.25% in September. But if you think now is the time to upgrade your lifestyle, “Shark Tank” star and investor Kevin O’Leary has a wake-up call.
“We’re looking at a downsized America,” he said in a November interview with Fox Business. “Three years ago, even 24 months ago, you’d get a mortgage at 4.5%. You’re lucky to get one at 8% today.”
But the impact of high rates extends beyond the housing market. Edmunds reports that borrowing rates for new vehicles in the third quarter of 2025 remained high at an average of 7%.
O’Leary summed it up by saying that if you are in your early 20s, your lifestyle will be “about 20% less.”
The blunt reality is that while the headline inflation figure is no longer at 40-year highs, price levels remain elevated. In October, the U.S. consumer price index jumped 2.9% from the previous year.
Despite this intimidating financial climate, you’re not totally in the dog house so long as you adjust your finances accordingly. Here is how you can do just that:
If the prospect of a “downsized America” has you wanting to readjust your financial plan, consider hiring an advisor to help get you on the right track.
If you’re unsure which path to take amid today’s market uncertainty, it might be a good time to connect with a financial advisor through Advisor.com.
This online platform connects you with vetted financial advisors best suited to help you develop a plan for your new wealth.
Just answer a few quick questions about yourself and your finances and the platform will match you with an experienced financial professional. You can view their profile, read past client reviews, and schedule an initial consultation for free with no obligation to hire.
You can view advisor profiles, read past client reviews, and schedule an initial consultation for free with no obligation to hire.
As O’Leary indicated, you may have to downsize — particularly for items that require borrowing money.
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When rates are high, it makes sense to reduce your monthly costs so as to pay down your debts as quick as you can, while also increasing your savings.
You can reduce the cost of essential bills like home insurance and auto insurance just by taking a closer look at what’s available.
Do not assume companies charge the same price for the same benefits.
OfficialHomeInsurance.com takes the hassle out of shopping for home insurance. In just under 2 minutes, you can explore competitive rates from top insurance providers, all in one place. OfficialHomeInsurance makes it easy to find the coverage you need at a price that fits your budget.
The side-by-side comparison is helping homeowners save an average of $482 on their home insurance policies.
Home insurance premiums aren’t the only thing coming out of homeowners’ pockets. If you own a car, you have another cost to deal with.
Similarly, OfficialCarInsurance can help you find and compare car insurance rates quickly and easily.
When you fill in a bit of information about yourself, bestmoney.com will provide you with a list of car insurance options near you.
There are essentials you need to include in your budget, so make sure you aren’t overpaying on these monthly bills amidst high inflation.
Read more: 30% of US drivers switched car insurance in the last five years. Here’s how much they saved — and how you can cut your own bills ASAP
Inflation-resistant investments such as real estate can act as a solid safeguard against economic volatility. The good news is that, unlike in the past you don’t have to be an accredited investor to make your mark in real estate.
For accredited investors, Homeshares gives access to the $34.9 trillion U.S. home equity market, which has historically been the exclusive playground of institutional investors.
With a minimum investment of $25,000, investors can gain direct exposure to hundreds of owner-occupied homes in top U.S. cities through their U.S. Home Equity Fund — without the headaches of buying, owning or managing property.
With risk-adjusted internal returns ranging from 12% to 18%, this approach provides an effective, hands-off way to invest in owner-occupied residential properties across regional markets.
Another option is targeted investments in hot real estate markets. You can tap into this market by investing in shares of vacation homes or rental properties through Arrived.
Backed by world-class investors including Jeff Bezos, Arrived allows you to invest in shares of vacation and rental properties, earning a passive income stream without the extra work that comes with being a landlord of your own rental property.
To get started, simply browse through their selection of vetted properties, each picked for their potential appreciation and income generation. Once you choose a property, you can start investing with as little as $100, potentially earning quarterly dividends.
If you are an accredited investor looking to add a larger real estate position to your portfolio, you also have the lucrative potential of commercial real estate open to you.
First National Realty Partners — a private equity firm that specializes in commercial real estate — stated that in times of market stress, there’s an opportunity to acquire high-quality properties at a discount.
With FNRP’s platform, accredited investors have access to institutional-quality, grocery-anchored commercial real estate investments. And since the investments are necessity-based, they tend to perform well during times of economic volatility and act as a hedge against inflation.
Using proprietary technology, FNRP’s team of experts vets every deal against a rigorous set of investment criteria and manages them in-house, which means you get to enjoy your quarterly returns without worrying about the quality of your investment.
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