Bangalore: Most of us find it difficult to cope with the increasing economy. Living on shoe string budget is not easy and definitely not interesting. For the past few months inflation has been talked about so much. Price for fuel, food and almost commodities are sky rocketing making it difficult for a common man to survive. There is not anything you can do about the rate of inflation but there are some things you can do to reduce the effect of inflation on you. Look at different ways of investing in order to fight inflation. Investing in stocks and commodities is a good option. Also investing in assets which can generate returns higher than rate of inflation. These are equity, Gold and real estate. However these asset classes are highly volatile in near term. When you opt for such investments, it will rise faster than inflation and thus preserve the purchasing power of your money. Apart from investment what will really make a difference is, change your lifestyle. Consider the effect of lifestyle inflation on your finances. Reduce your day to day spending. Live within your means is what you should focus on. Ways to slash the cost of petrol and food include cutting out any unnecessary car journeys and taking advantage of supermarket reward schemes to reduce your bills. Know what are your needs and wants. Don't get into impulsive spending. Find alternatives to the product with the inflated price. Your priority should be to pay down the debts. With inflation high and interest rates low, savers are really struggling to earn a decent rate of return on their savings. Anyone with unsecured debts may therefore want to consider using any spare cash to reduce their debt burden - rather than adding to their savings. Rather than just paying more off your credit or store card each month, look to see if you can reduce the amount of interest you're being charged by transferring the balances onto a cheaper card. If you have reached the point where you want to convert your pension pot into an income, consider ways of inflation proofing your future income, for example by buying an escalating annuity. Best time to go pick items in bulk. If you find an item at a bargain price or have a reason to believe that the price of the item will rapidly increase it could be a good idea to stockpile that item. This strategy does not work for all items but if you examine the items you buy regularly you will find many of them can be stockpiled.