Cutting Expenses for Inflation: 8 Things To Eliminate When You’re Just Getting By
In the 12 months ending in March 2024, the cost of everyday goods and services rose by 3.5%. While inflation has mostly leveled off, costs continue to rise over time. Except in a rare period of deflation, what you can purchase for $1 — or any other monetary amount — is going to be less in the future.
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This can be hard to deal with, especially if you’re living on a fixed income — like many retirees are — or if you’re working and getting by on a month-to-month basis.
The good news is that there are a few expenses that you might be able to cut back on, even if you’ve already gone down to a minimal budget. This can ease some financial stress and free up some cash for day-to-day expenses or even financial goals.
Here are some expenses you might still be able to eliminate, according to financial experts.
Prescription Medications
Prescription medications may not be something you can stop taking, but you could cut down on what you’re currently paying by switching to generic — with doctor approval — or using an app such as GoodRx.
“If someone has already gone down to a minimal budget and is still struggling, prescription medications may be an expense they can still cut back on via the GoodRx app,” said a GoodRx spokesperson. “Founded in 2011, GoodRx is the leading destination for prescription savings in the U.S. It delivers transparent and lower prices on generic medications, and surfaces important savings programs for brand drugs.”
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Lesser-Known Subscription Services
According to a recent Forbes survey, the average American spends $552 across all subscription services.
If you’re trying to cut costs, take a deep dive into your subscriptions and see which ones you’re still paying for — without even realizing it.
“While you may have accounted for major subscriptions like streaming or gym memberships, smaller or less frequent subscriptions such as app-based services, magazines or premium software can slip under the radar,” said Erika Kullberg, an attorney, personal finance expert and founder of Erika.com.
“Audit your bank and credit card statements for the past few months to spot any recurring charges,” she said. “You might discover services you forgot about or realize you’re paying for something you no longer use or need.”
Utilities
You can’t fully cut out your utility bills, but there’s a good chance that you can still find ways to reduce how much you’re spending every month.
“Utilities are a necessity, but how you use them can lead to unnecessary costs,” Kullberg said. “Consider your water, gas and electricity usage. Simple changes like fixing leaks, installing energy-efficient bulbs or reducing your thermostat by a few degrees can lower bills significantly.”
Phone and Internet
Along with basic utilities, you might want to look into your phone and internet bills. Even if you need the services, you might not need that expensive plan you’re on.
“Evaluate your phone plan,” Kullberg said. “You might be paying for more data or minutes than you actually use.”
As for internet, depending on your circumstances, you might be able to get away with switching to a simpler plan. It might mean getting slower internet speeds; but, when you’re struggling to get by, the sacrifice could be worth it.
Gym Membership
“Some items — such as your rent or mortgage, loans, utility bills and groceries — are non-negotiables and cannot be cut from your budget. Therefore, you have to look at what you are currently paying for wants in life and decide if you want to continue paying them,” said Julie Beckham, financial education officer at Rockland Trust. “This is a great way to eliminate unnecessary spending.”
One particular expense that you may or may not have accounted for already is your gym membership.
“Do you have a gym membership you don’t use? Can you exercise at home or outside until you save more money?” Beckham said. “Saving a bit here and there can add up and go a long way.”
Groceries
Food prices have risen significantly due to inflation.
According to the Bureau of Labor Statistics, the average American spent $328 on groceries in March 2024 — an $8 increase from the same time the previous year. Food prices also rose during that 12-month period — from $350 to $365 a month.
You need to eat, but you might not need to spend quite so much on food.
“For every expense, consider cheaper alternatives,” Kullberg said. “If high grocery bills are a concern, try shopping at discount stores or joining food co-ops.”
Another option is to really prioritize meal planning.
“To maximize your grocery budget (and cut back on food waste), plan out your meals for the week, buy what you need and, as always, look for low-cost deals,” said a Quicken spokesperson.
Impulse Purchases
It might not seem like it, but impulse purchases can start adding up and fast.
“Watch those impulse buys,” the Quicken spokesperson said. “While one candy bar in the grocery checkout line won’t set you back much, too many impulse buys can add up.”
If those little things add happiness or vibrance to your life, see whether you can set a monthly budget for them. That way, you can still enjoy the occasional splurge without breaking the bank.
Loans
Do you have student, mortgage or auto loans? What about credit cards?
All of those debts can put a major dent into your monthly budget, but you still need to pay back what you owe. The good news is that you might be able to eliminate those high interest rates and switch to a lower-cost alternative.
“Refinancing loans or switching to lower-cost alternatives can help you save money on interest payments,” the Quicken representative said. “This can include auto loans, mortgages or other loans with high interest rates.”
Once you’re able to pay off the balance due, you’ll also have some extra cash for other things — whether that’s other debts, everyday expenses or even just things you want.
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This article originally appeared on GOBankingRates.com: Cutting Expenses for Inflation: 8 Things To Eliminate When You’re Just Getting By
