Torsten Asmus / Getty Images/iStockphoto
Our Dedication to Readers
GOBankingRates’ editorial staff is devoted to providing you with impartial evaluations and insights. We leverage data-driven approaches to assess financial products and services — our reviews and ratings are independent of advertiser influence. You can learn more about our editorial standards and our review methods for products and services.
20 Years
Assisting You in Achieving Financial Well-being
Expert Reviews
Your Trustworthy Source
Trusted by
Millions of Readers
With the U.S. Bureau of Labor Statistics indicating a 3% annual inflation rate, many Americans worry about managing increasing costs for various items. This highlights the need to reduce luxury spending and seek more efficient ways to manage essential expenses.
Financial expert and author Rachel Cruze advises prioritizing your essential “four walls” if you’re facing financial difficulties or want to allocate more funds toward goals such as debt repayment. These four areas include housing, food, utilities, and transportation expenses.
In a recent YouTube video, Cruze shared strategies for saving money in these categories to alleviate the financial impact of inflation.
Food
Food is an essential expense that you can’t avoid, so focus on finding grocery deals that can ease this cost. Cruze emphasized the importance of your choice of grocery store. Although it may be less convenient, shopping at multiple locations to take advantage of sales and coupons can be a wise strategy.
Additionally, Cruze recommended opting for items that offer lasting value. Focus on staples like canned goods, dry foods, and vegetables instead of indulgent meats and specialty products.
Furthermore, signing up for grocery store rewards programs and utilizing cash-back apps like Fetch and Ibotta can be beneficial. Avoiding dining out is also advisable, as the inflation rate is higher for food consumed away from home (3.4% versus 1.9%).
Housing
Due to fixed mortgage payments or leases, Cruze acknowledged that addressing housing costs often requires more creativity than other essential expenses.
If you have the space and don’t mind sacrificing some privacy, consider temporarily taking in a roommate to split housing costs. For renters, securing a longer lease can help lock in a lower monthly rate.
In more extreme cases, downsizing or relocating might be necessary. “Generally, living closer to a city increases costs, while moving further out can lead to savings,” she stated.
Utility Bills
According to Cruze, implementing some easy habit changes can make managing rising utility expenses more manageable. For example, run your dishwasher and washing machine only when full, and turn off appliances, lights, and faucets when not needed.
Another suggestion is to adjust your thermostat when you’re away. Utilizing a smart thermostat can help you program lower temperatures during winter and higher settings in summer, potentially lowering your heating and cooling costs by approximately 8% with a certified model, according to Energy Star.
Transportation
To minimize gas expenses, Cruze recommended enrolling in gas reward programs offered by brands such as Exxon, Kroger, Costco, and Shell. Although the savings may seem small, they can add up, and many of these programs provide additional discounts on purchases.
Also consider the location of gas stations. “Refueling in more affluent areas tends to be pricier, so driving just a little further down the road could save you $5 to $10 when refilling,” Cruze stated.
While it may be less convenient to go out of your way, the savings are often worth the effort. Apps like GasBuddy and Way can help compare fuel prices as well.
Lastly, explore the possibility of using public transport, carpooling, or temporarily adopting a one-car family model until your budget allows more flexibility.
