6 money-saving tips for people struggling with high prices
6 money-saving tips for people struggling with high prices
You probably felt the sting of high prices during your holiday shopping or last trip to the grocery store. You’re not alone.
The latest government data shows that inflation has continued to come down from its post-COVID-19 pandemic highs but also that wage growth is slowing. And more Americans are struggling to pay for everyday essentials: A recent analysis from the Brookings Institution found that as of 2023, one-third of the American middle class cannot afford their basic necessities.
Groceries, gas, housing, insurance, and even the little things that used to feel manageable now seem to cost noticeably more, says Alex Barnes, a wealth manager at Savvy Advisors. He says that for many households, the challenge is not reckless spending — it is that expenses have simply outpaced what individuals and families bring home from work.
“The affordability crisis is hitting everyone hard, and if you are feeling stretched, you are not alone,” Barnes says. “The good news is that while we cannot control inflation or the rising cost of goods and services, there are practical steps that can help restore some breathing room.”
Here, Current, a consumer fintech banking platform, shares six moves to make now that can help you save.
1. Strategize at the grocery store
While food is a necessity, what you buy and where you shop can make a meaningful difference in terms of how much you can save. For instance, frozen meat and produce can be less expensive than fresh alternatives, allowing you to buy in larger quantities without worrying about them spoiling quickly. Canned goods also often last longer and reduce food waste, Barnes says.
He says that if you prefer to stick with fresh options, swapping one item for another — like chicken thighs instead of chicken breast or chuck roast instead of ribeye — can significantly lower your grocery bill without sacrificing your plan.
Meal planning and prepping early in the week can also help.
“Planning ahead allows you to buy ingredients that work across multiple meals, review store sales before shopping, and reduce impulse purchases,” Barnes says. “Buying nonperishable items from stores like Walmart, Target, or warehouse clubs such as Costco or Sam’s Club can also lower costs, as these retailers are often able to price items more competitively than traditional grocery stores.”
2. Turn price volatility into an advantage
Many people lose money because they shop emotionally, not strategically — but when prices move around, the flexible household wins, says Gabriel Shahin, founder and CEO at Falcon Wealth.
He recommends tracking prices on staples you already buy and stocking up when prices drop.
“Rotate brands instead of staying loyal, buy generic when quality is comparable, and plan purchases around sales cycles,” Shahin says. “Over a year, this doesn’t feel dramatic, but it can quietly save thousands without changing your lifestyle.”
3. Improve your debt situation
Credit cards with double-digit interest rates or other high-interest lines of credit can quietly undo a lot of the hard work you do to save, Barnes says. In some cases, she adds that consolidating debt can help free up monthly cash flow while still keeping you on track to pay it down. This may include personal loans with lower fixed interest rates or secured options if you have equity in a home or vehicle.
Promotional interest rates can also be helpful in the right situation, she adds. Credit card companies and banks often offer loans or balance transfers with low or even zero-percent interest for a limited time, usually with an upfront fee.
“These offers can save a significant amount in interest, but it is important to understand the terms and required payments,” Barnes says. “This option works best when you have a clear path to paying off the balance within the promotional period.”
Chipping away at your debt via the snowball or avalanche method can also help. The snowball method involves paying off your debts with the lowest balance first, then moving on to the second-lowest balance and so on. The avalanche method entails paying off your debts according to their interest rates (highest to lowest), no matter what the balance is. If you need to build up your credit history due to impacts from your debt, secured charge cards can help you build credit history from your everyday spending. You can only spend the amount of money available in your account, which minimizes the risks of adding any debt. You’ll want to look for a card that reports to all three major credit bureaus (Equifax, Experian, and TransUnion) and has a low or no required minimum deposit.
4. Simplify your finances to reduce mistakes
Complexity causes overspending. The more accounts, cards, and subscriptions you have, the more likely money leaks out unnoticed, Shahin says. Fewer decisions mean fewer mistakes, and fewer mistakes mean more money staying in your account.
“Start by consolidating credit cards to one or two, closing unused accounts, and turning on autopay for essentials only,” he adds. “Review subscriptions quarterly and cancel anything you haven’t used in 60 days.”
Some banking and fintech apps offer money management tools that make it easy to see what type of items and services you spend on most often.
5. Review your tax plan
When reviewing your income, taxes are one of the first areas worth examining — they’re a major expense, but often receive less attention throughout the year than other areas of your finances, Barnes says. Start with revising your withholdings if you consistently receive a large tax refund.
“While a refund can feel nice, it represents money you paid throughout the year and did not have access to when you could have used it,” Barnes says. “Adjusting withholdings can increase take-home pay, which can then be used to pay down debt or cover ongoing expenses, reducing the need to rely on credit.”
If your withholdings are already fairly accurate, the next step is reviewing ways to lower your tax bill. Contributing to tax-advantaged accounts such as health savings accounts (HSAs) and certain retirement accounts can lower taxable income, reduce overall tax liability, and improve cash flow throughout the year.
6. Shop around
When it comes to services you pay for, such as insurance, internet, cellphone plans, subscriptions, and even medical bills, it often pays to shop around more frequently than people expect, Barnes says.
“Companies know customers have options, and discounts are often available for those who ask,” she asks. “Even if you do not switch providers, having a conversation with your current provider about pricing and available options can lead to savings.”
This story was produced by Current and reviewed and distributed by Stacker.
