The rising costs of goods and services are a major concern for consumers in the United States, as inflation continues to put financial pressure on households. In response, we have compiled several creative ways to cut down on expenses and increase savings during a recession or to fight inflation.
1. Manage Your Debt
If you are struggling with high-interest credit card debt, consider paying it down as quickly as possible. Look into 0% balance transfers that may be available, but aim to have less debt overall. This will reduce your financial burden and increase your ability to save money.
2. Shop Smart at the Grocery Store
The price of groceries has risen steeply, so it’s important to shop wisely. Consider giving up expensive brands and shopping at discount stores instead. Pay attention to sales and discounts, and make a list before you go to the store to avoid impulse purchases.
3. Control Your Subscriptions
Online subscription services are a major expense for many people, so it’s important to review your subscriptions and cancel those that you don’t use or don’t need. Make sure you understand the cancellation and refund policies for each subscription before you sign up.
4. Be Vigilant about Health Costs
When seeking medical care, ask about the cash rate for procedures and lab work. Research the cost of services and procedures ahead of time, and consider requesting generics for prescriptions to save money on medications.
5. Use Your Insurance Benefits
Take advantage of the benefits offered by your insurance plan, such as reimbursement for COVID-19 tests. Keep track of your expenses and submit claims for reimbursement promptly.
6. Provide Value at Work
During a recession or high inflation, companies may be looking to reduce headcount. To protect your job, make yourself indispensable at work by being proactive and taking on additional responsibilities.
7. Negotiate Deals
When it comes to large expenses like rent or housing payments, it’s worth negotiating to try to lock in better rates. Consider requesting a longer lease agreement to lock in your monthly rate for an extended period of time.
Adjusting your budget to cut expenses wherever possible can help you weather the effects of rising costs during a recession or high inflation. By implementing these strategies, you can reduce your financial burden and increase your savings.