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As inflation and economic uncertainty continue to affect the U.S. in 2025, many people are turning to side gigs to increase their income and financial security. With the cost of living rising faster than wages, side hustles are helping individuals stay ahead and prepare for unstable job markets. The most popular side gigs this year reflect changes in technology and the economy. For example, AI prompt engineering—creating and refining prompts for artificial intelligence tools—is becoming a high-paying opportunity, especially for those with strong language and tech skills. Other in-demand side hustles include freelance writing, online tutoring, and digital marketing services. These flexible jobs not only bring in extra cash but also build valuable skills that can lead to long-term career growth.

In July 2025, President Trump signed a major new law called the "One Big Beautiful Bill" (OBBB), which changes the way taxes work for millions of Americans. This law makes permanent some of the tax cuts from 2017, such as larger tax brackets and a nearly doubled standard deduction. That means many middle-class families, workers, and retirees will have lower taxable income and see simpler tax filing. The bill also increases the child tax credit to $2,200 per qualifying child and ties it to inflation, so it can grow over time. This helps families keep more of their money. In addition, the bill introduces new tax breaks designed to support certain groups, making it one of the most impactful tax reforms in recent years.

In 2025, many Americans are adjusting how they spend money due to high inflation and steep tariffs—the highest in over a century, averaging 22.5%. These economic changes are making everyday goods more expensive, especially for lower-income families, who are feeling the impact more than wealthier households. As a result, people are spending less on non-essential items and focusing more on basics like groceries, healthcare, and household bills. Discount stores and cheaper store-brand products are gaining popularity, while luxury items are seeing fewer buyers. Still, U.S. consumers are showing resilience by continuing to spend carefully, especially on durable goods that last a long time, like appliances and furniture.

As the Federal Reserve plans to cut interest rates soon, financial advisers are encouraging people to act now to protect and grow their money. Right now, savings accounts and certificates of deposit (CDs) are offering higher interest rates than usual, which means better returns on your savings. But once the Fed lowers rates, these returns will likely drop, so locking in the current rates is a smart move. Advisers also suggest rebalancing your investment portfolio to prepare for possible market changes. When interest rates go down, some bonds and savings products might not perform as well, and the stock market could become more unpredictable. Taking these steps now can help you avoid missing out on key financial opportunities.

In 2025, the rapid rise of artificial intelligence is helping the economy grow, but it's also leading to a big increase in financial scams. Experts warn that criminals are using AI tools—especially deepfakes—to trick people and businesses more easily than ever before. Deepfakes are fake videos or audio clips that look and sound very real, allowing scammers to pretend to be trusted people like company CEOs or even family members. Billionaire investor Jim Chanos says fraud now is reaching extreme levels, even worse than during the COVID-19 pandemic. As tech companies keep pouring money into AI, consumers and banks need to stay alert to these new, high-tech threats.

As inflation holds steady at 2.6% and stock markets retreat from recent highs, financial experts are urging people to take a closer look at their money habits. Tech stocks are seeing particular losses, and rising prices continue to create uncertainty about the economy's direction. Personal finance leaders like Dave Ramsey and Suze Orman are encouraging Americans to focus on building financial security. That means cutting unnecessary spending, paying down debt, and boosting emergency savings. With market ups and downs becoming more common, smart money moves now involve being cautious, staying informed, and sticking to long-term financial plans over risky investments.