Prices for everyday necessities are rising, and a recent CNET survey found that 93% of American adults are concerned about inflation.
More specifically, they’re concerned about rising costs for groceries, gasoline, dining out and utilities. In fact, 77% of Americans surveyed experience “price shock” when buying groceries.
Despite signs of inflation calming, 16% of survey respondents are turning to credit to make ends meet. While you can’t change how inflation affects prices, here are some things you can do to stay afloat during this time while still being able to buy the essentials you need and avoid debt as much as possible.
How to Minimize Debt When Buying Essentials
If you’re trying to pay off your credit cards each month only to find that the balance exceeds the balance in your bank account, you’re not alone.
of Federal Reserve Bank More than half of American households have credit card debt, with the average balance estimated at $7,226. Debt may be unavoidable for now, especially if your expenses are outstripping your income. It’s not just that people are irresponsible or bad at managing their money when they get into debt, says Bola Sokunbi. Clever Girl Finance “It’s a very good story,” the CNET member, who serves on the organization’s expert review board, previously told CNET Money.
“That could be someone who’s just starting out on their financial journey and has lost their job, or inflation is so high it’s impacting their income and they can’t afford to follow through on the debt repayment plan they had in place.”
Here are some shopping tips to help you cut costs without sacrificing the essentials.
Stick to your budget (and list)
To ensure you have as little debt as possible, Sokunbi recommends making a budget and sticking to it as much as possible. Your budget should include all your bills and essentials, like groceries, gas, and bills.
If you don’t know how much money you’re spending on daily necessities, now’s the time to find out. Track your spending, either manually or with a budgeting app, to see how much you’re paying for basics like food and gas pumps, and look for areas where you can curb your spending. For example, you might be able to temporarily cancel a subscription to set aside more money for essentials. Keep in mind that some budgeting apps, like our recommended Rocket Money ($4-12), require payment.
Rising grocery prices are the biggest financial headache for most Americans, so it makes sense to find relief at the store. Going grocery shopping when you’re hungry or without making a shopping list can lead to impulse buys that could spell disaster.
Shop coupons, weekly sales and great deals
The savings from coupons may be small, but they add up quickly. Coupon and money saving apps, or print coupons that arrive in the mail, can help you cut costs. And if you have to use a credit card, be sure to check the offers and deals section of your card for store discounts.
When you’re at the store, try to only buy snacks and ingredients that are on sale or are cheaper than usual. Most grocery stores run or post weekly advertisements, so use the advertisements as a guide when making your shopping list and when deciding what to stock up on during sales.
Find out if your favorite grocery store’s prices match specific items or specials at other stores. Keep in mind that a price match usually requires that a competitor is offering the exact same product and that the sale is currently active. However, it never hurts to ask at the customer service desk if your store can match the price.
Switch between brands and stores
Have you ever thought about how much brand loyalty could be costing you? In some cases, store brands are just major manufacturers selling their products under a different label at a cheaper price, meaning switching could offer big savings without sacrificing quality.
Consider changing where you buy your fresh produce. Your local farmers market or grocery co-op offers cheaper prices on fruits, vegetables, dairy, and meat because of lower shipping costs. Some small businesses are losing money because of high credit card fees, so they may offer discounts if you pay with cash. Don’t be afraid to ask.
read more: I switched to store brand groceries for a week and here’s how much I saved:
Some items on the shelves may be the same price as they were a few years ago, but you’re getting a lot less for the money. This is commonly known as shrinkflation. Your best defense against this is to check the unit price of the item before you add it to your cart. You can usually find the unit price on the shelf tag of the item.
Use your rewards to get grocery gift cards
Many credit cards offer attractive rewards, such as cash back rewards. You don’t want to spend that money in the wrong place, do you? By using your cash back rewards to buy grocery gift cards, you can be sure that you’re using the money to buy essentials.
If you can pay your credit card bill in full and on time every month, consider getting one of the best credit cards for groceries and double your points. If not, stick with a debit card or cash to avoid overspending and going into debt. Either way, remember to calculate what’s in your cart before checking out so you don’t underestimate the total and get unpleasantly surprised.
promise a spending freeze
Breaking bad habits sometimes requires moderation. If your spending has grown beyond your means, cutting back on your spending may help you get back into healthier habits. Even if you can just cut out unnecessary credit card purchases for two weeks or two months, the change will be very beneficial for you (and your wallet).
You could also try a money saving challenge or create your own, like spending only $100 on groceries each week instead of $150. Or try a pantry challenge and only use what’s already in your pantry and freezer for a week, using the unused funds towards debt repayment or an emergency fund.
Conclusion
If you find yourself constantly racking up bills for groceries, gas, and other necessities, consider at least temporarily cutting back on expenses like subscriptions or starting a side hustle to put extra money into your budget. Even with the prospect of inflation moderating, it’s important to do what you can now to avoid slipping into debt.
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