Jasmine Birtles
Your money-making expert. Financial journalist, TV and radio personality.
Smart Savings Strategies During the Cost-of-Living Crisis
Moneymagpie Team
10th Mar 2025
The cost-of-living crisis has become a defining challenge for households worldwide, as inflation and economic uncertainties strain family budgets. According to the United States BLS or Bureau of Labor Statistics, consumer prices increased by three percent from June 2023 to June 2024, with food prices rising by 2.2 percent and energy prices increasing by one percent.
As families grapple with these rising costs, adopting practical and technology-driven savings strategies can offer a lifeline.
Amid the uncertainty, individuals and families can save money without sacrificing essential needs or long-term financial goals. From reducing utility bills to leveraging fintech tools, these strategies are designed to maximize savings in a challenging economic environment.
- Proven Tips to Save Money During Challenging Times
- Weather Economic Challenges With Financial Discipline
Proven Tips to Save Money During Challenging Times
Households can still save money during a crisis by paying attention to the correct details in their budget and applying these strategies:
1. Lowering utility bills without compromising comfort
According to the United States EIA or Energy Information Administration, in 2023, state utility regulators approved nearly $10 billion in rate increases, more than doubling the $4.4 billion approved in 2022.
Utility costs are a significant burden for households. Here are some proven ways to cut these costs:
- Install energy-efficient appliances: Switching to energy-efficient appliances can reduce electricity consumption significantly. For example, replacing an old refrigerator with a more energy-efficient model can potentially save hundreds of dollars annually. Certified refrigerators are about nine percent more energy-efficient than regular models meeting the federal minimum energy efficiency standard.
- Smart Thermostats: Investing in smart thermostats, such as Nest or Ecobee, allows you to control heating and cooling remotely and schedule energy usage during off-peak hours, potentially reducing costs.
- Seal Drafts and Insulate: Simple measures like sealing windows and adding attic insulation can reduce heating and cooling costs, making a noticeable difference in utility bills.
2. Smarter grocery shopping
Food prices have noticeably risen sharply over the past year, pushing families to rethink their grocery habits. Use these tips to save on groceries:
- Shop generic brands: Generic or store-brand products often match or approximate the quality of name brands at a fraction of the cost.
- Use cashback apps: Apps like Ibotta, Fetch Rewards, and Rakuten offer cashback for grocery purchases.
- Buy in bulk: Purchasing staple items like rice, beans, and canned goods in bulk can reduce per-unit costs.
- Plan meals and avoid impulse purchases: Meal planning minimizes waste and ensures every item in your cart serves a purpose.
3. Affordable entertainment options
Entertainment doesn’t have to break the bank. Adopting budget-friendly alternatives can help maintain quality family time without overspending:
- Leverage free community resources: Many cities offer free concerts, movie nights, and festivals.
- Streaming bundles: To reduce monthly costs, consolidate streaming services into a single subscription with platforms like Hulu’s Disney+ bundle.
- DIY entertainment at home: Hosting game nights, cooking competitions, or DIY craft projects can provide memorable experiences at a fraction of the cost of going out.
4. Embracing technology for better money management
The rise of financial technology has revolutionized how people manage money. Budgeting apps and platforms empower users to track expenses, set savings goals, and reduce financial stress.
For example, apps like Mint aggregate all financial accounts, categorize expenses and provide personalized budgeting insights. Others, like YNAB, are designed for proactive planning, helping users allocate every dollar toward specific goals. Acorns rounds up the user’s purchases to the nearest dollar and invests the spare change, offering a hands-off approach to growing savings over time.
5. Reassess subscriptions and memberships
It’s easy to lose track of recurring subscriptions, but these minor costs can significantly increase over time. Conducting a subscription audit can help you identify unnecessary expenses:
- Use subscription tracking apps: Services like Truebill or Rocket Money pinpoint recurring charges, making it simple to cancel unused subscriptions.
- Negotiate rates: Many subscription services, such as cable and internet providers, will lower rates if you call and ask.
- Switch to pay-as-you-go models: For services like gym memberships, switching to pay-per-use options can save money if you’re not a frequent user.
6. Refinancing your mortgage to unlock savings
Mortgage refinancing is one of the most impactful ways to reduce monthly expenses. By obtaining a lower mortgage interest rate, homeowners can significantly decrease their monthly payments.
Fintech companies like SoFi provide refinancing options with competitive rates and a streamlined online application and screening process, helping homeowners reduce their financial burden. These savings can then be redirected toward emergency funds, investments, or other financial goals.
7. Maximizing employer benefits
Many employees overlook valuable benefits that can help save money. Take full advantage of these offerings:
- Flexible Spending Accounts (FSAs) allow you to set aside your pre-tax dollars for healthcare and dependent care expenses, reducing your taxable income.
- Retirement matching: Contribute enough to your 401(k) to maximize employer matching, effectively doubling your contribution at no additional cost.
- Wellness programs: Many companies offer discounts on gym memberships, wellness apps, or even free financial counseling services.
8. Automating savings
Automation is an immensely effective tool for consistent savings. By setting up automatic digital transfers to a savings account, you can “pay yourself first” and eliminate the temptation to spend those funds elsewhere:
- Set savings goals: Platforms with savings buckets allow users to allocate funds toward specific goals, such as travel, emergencies, or debt repayment.
- Round-up savings features: Many banks and apps offer round-up savings programs that automatically transfer spare change into a savings account after every purchase.
- Automated investment apps: Tools like Stash and Wealthfront enable users to invest small amounts regularly, building wealth incrementally.
9. Leveraging discounts and cashback opportunities
Conscious and savvy shopping can lead to significant savings over time. Here’s how to make the most of discounts and cashback programs:
- Credit card rewards: Use credit cards that give cashback or rewards points for everyday purchases, such as groceries and gas.
- Seasonal sales: Plan major purchases around seasonal sales events, like Black Friday or end-of-season clearance sales.
- Price comparison tools: Extensions like Honey or Capital One Shopping automatically apply coupons and find the best deals online.
10. Building a resilient financial mindset
Finally, cultivating a resilient financial mindset is key to navigating economic challenges. This involves:
- Tracking progress: Regularly review your financial goals and adjust them as needed.
- Staying educated: Follow credible financial blogs, podcasts, and newsletters to stay informed about money-saving strategies and economic trends.
- Celebrating milestones: To stay motivated, acknowledge small wins along the way, whether it’s reaching a savings target or paying off a debt.
Weather Economic Challenges With Financial Discipline
The cost-of-living crisis presents undeniable challenges but offers an opportunity to adopt smarter financial habits. By implementing the strategies outlined above—from reducing utility bills and grocery expenses to leveraging technology and mortgage refinancing—individuals and families can regain control over their finances and build a more secure future.
Mortgage refinancing options are a powerful tool for alleviating financial pressure, making prioritizing savings and long-term goals easier. By taking proactive steps today, you can weather the current economic storm and emerge more substantial and more financially resilient.
Disclaimer: MoneyMagpie is not a licensed financial advisor and therefore information found here including opinions, commentary, suggestions or strategies are for informational, entertainment or educational purposes only. This should not be considered as financial advice. Anyone thinking of investing should conduct their own due diligence.
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