Financial expert discusses ways to cope with higher expenses

MILWAUKEE (CBS 58) -- Financial advisor Tom Neumann of Drake & Associates joined us on Friday, Oct. 10 to outline how new tariffs are raising costs and what consumers can do to adjust.

He mentioned that price pressure is most visible in imported goods, with grocery prices up 2.9% year over year and coffee about 14.5% higher. Produce saw some of the biggest jumps, including fresh and dry vegetables, while furniture and audio and video products also ticked up.

Neumann recommended three steps to manage costs.

First, review a monthly budget to find nonessential cuts and set spending limits. Second, pay down high-interest debt to free up cash flow for other goals. Third, consider high-yield savings options such as CDs or money market accounts to take advantage of higher rates while maintaining a long-term focus.