Are you financially better off than you were four years ago? You can determine the answer by comparing your wages, prices and savings.
On a national basis, the data shows that over the last four years, prices are up sharply, wages are up slightly more, but savings have fallen significantly. Here are the specifics.
Prices Are Higher Than Four Years Ago
Data from the Bureau of Labor Statistics (BLS) shows that the Consumer Price Index (CPI-U) rose from 283.716 in February 2022 to 325.252 in January 2026. This translates to an overall price increase of about 14.6% since four years ago.
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Wages Are Also Higher
Counteracting the rise in inflation over the past four years is an increase in wages. Overall, wages rose by slightly more than inflation, providing Americans with a bit of breathing room in terms of affording the cost of living.
Specifically, average hourly earnings to “total private” workers rose from $31.64 in Feb. 2022 to $37.17 in Jan. 2026, according to the Federal Reserve Bank of St. Louis. This amounts to a gain of about 17.5%.
When compared with the 14.6% jump in inflation over the same time period, workers enjoyed a real, inflation-adjusted income gain of about 2.5% over the period, using the same CPI benchmark.
Savings Are Down
The personal savings rate has been slashed nearly in half over the past four years. In February 2022, the personal savings rate was 6.3%, according to the Bureau of Economic Analysis.
In Dec. 2025, the most recent period for which data is available, the savings rate had fallen to 3.6%, a drop of about 43%. This means that on average, households are saving a smaller share of their after-tax income.
How To Improve Your Financial Situation
If you’re not better off than you were four years ago and are feeling the economic pinch, here are some actionable steps you can take to improve your finances.
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Check your real buying power: If you aren’t earning at least 15% more than you were in early 2022, your real, inflation-adjusted income may be flat-to-down. Consider negotiating a higher salary or taking a side gig to boost your real income.
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Prioritize your emergency fund: If you’re like the average American household, your savings rate has slipped over the past four years. Work on building up a starter emergency fund to at least $1,000 before spending additional money on discretionary items.
- Target the big categories: If you dig deeper into the recent CPI data, it shows that shelter costs remain a big factor when it comes to household unaffordability. If you can lower your housing costs, either through refinancing, downsizing or even taking on additional roommates, it can go a long way towards stretching your budget.
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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This article originally appeared on GOBankingRates.com: Are You Better Off Than Four Years Ago? What the Data Say About Wages, Prices and Savings Since Trump Took Office Again
