Inflation is a word we’re hearing a lot these days, and for good reason—it’s affecting everything from the price of groceries to gas to rent. If you’ve been wondering how to combat inflation without completely changing your lifestyle, you’re not alone. A lot of people are feeling the squeeze on their wallets and are searching for real, doable ways to save money while still covering the basics.
Understanding some straightforward tips to save money during inflation, focusing on the essentials—like food, housing, transportation, and more—can help you make simple changes that can have a big impact.
Understanding the Impact of Inflation on Your Finances
Before diving into the how-tos, it’s important to understand the effects of inflation. Inflation is when prices increase across the board—this could be groceries, rent, gas, and even things like haircuts or daycare. The inflation rate may seem like just a number on the news, but for everyday people, it shows up in our shopping carts and monthly bills.
So how does inflation affect savings? As prices rise, your dollar doesn’t go as far—this is what’s known as lowered buying power. The money sitting in your savings account may be safe, but if the interest it earns is lower than the inflation rate, then technically you’re losing value over time. Let’s look at a simple example:
How Inflation Works
Let’s say you have $100 in your savings account, and it earns 1% interest in a year—so by the end of it you have $101. But imagine that the inflation rate that year is 5%. This means that something that cost $100 the year before might now cost $105. So, even though your money grew, it can’t buy as much as before—your buying power went down. When your savings grow slowly, but the inflation rate rises faster, your money may effectively lose value over time.
Note: The above is an example only and does not reflect actual investment performance or economic data.
5 Tips to Help you Save on Essentials
1. Budget Smarter, Not Harder
If you’re looking for how to survive inflation, budgeting is your first and best tool. Think of your budget as your financial GPS—it tells your money where to go so you don’t get lost. Start by identifying fixed costs (rent, insurance, personal loan payments) and variable expenses (things that change from month to month like food, gas, entertainment).
Then look for ways to cut back. For example:-
- Switch from brand-name groceries to store brands.
- Batch-cook meals to lower food waste and takeout spending.
- Use cashback or loyalty programs to stretch your dollar and save money.
Apps like Mint, YNAB, or even a simple spreadsheet can make budgeting less intimidating. If you want some help getting started, you can check out this guide on zero-based budgeting to give you a simple framework to work with.
2. Get Creative with Grocery Shopping
Food is one of the fastest-rising expenses. To save money on groceries:
- Shop weekly flyers and build your meals around what’s on sale.
- Buy in bulk (especially for staples like rice, beans, or pasta).
- Don’t shop hungry—seriously, it leads to impulse buys.
- Use apps like Flipp or Checkout 51 to find digital coupons.
Many communities also have food co-ops or discount grocers that offer quality items at lower prices. Planning meals ahead helps lower “what’s for dinner?” stress and keeps you from blowing your budget. Here are some tips to help you build a grocery budget when you’re feeling the squeeze of inflation.
3. Save on Transportation
Gas and car maintenance can be another pain point. If you drive regularly:
- Use apps like GasBuddy or AAA’s app to find the lowest gas prices in your area.
- Carpool or do all your errands in one trip to save on gas. For example, if you usually make three separate trips a week, combining them into one could save you a quarter tank of gas—or about $20 a month, depending on your car and gas prices.
- Keep tires inflated and stay up to date with oil changes—good maintenance equals better mileage.
- Public transit, where it’s available, can be a budget-friendly option.
4. Cut Back on Utilities Without Sacrificing Comfort
Utilities are essential, but you can still lower costs:
- Use energy-efficient LED bulbs.
- Unplug devices that draw power when they’re not being used.
- Adjust your thermostat by a few degrees—especially at night or when you’re out. Lowering your thermostat by just 2°F while you sleep may help you save in the long run without even noticing the difference.
- Wash clothes in cold water and line dry when possible.
These small shifts help not only with bills but with your long-term energy footprint. You can learn more here about what you can do to cut back on utility bills.
5. Revisit Your Debt Repayment Plan
If you’re carrying credit card debt, or debt of any kind, now is the time to look at ways to deal with it:
- Put a pause on your credit card spending altogether so you don’t keep adding on to the debt you’re trying to pay off.
- We know it can be tough, but do your best to make more than just your minimum payments. Anything extra can make a difference.
- Go through your home and if possible, consider selling any items you don’t use. The money you make can help make a dent in your debt. Think: small kitchen appliances you never use, clothes with tags still on them, or that old phone sitting in a drawer.
Here are some tips to help you pay off debt, and if you’re looking for a more specific plan or framework, explore the snowball vs. avalanche methods of paying off debt to see if they work for you.
Keeping your Head up Through Uncertainty
Feeling overwhelmed is normal. Inflation can shake even the most careful financial plans. But remember that small, consistent steps are powerful. You don’t have to change your life overnight. Start with one or two of these tips to save money during inflation and build from there.
It’s not about perfection—it’s about progress. And whether you’re trimming your grocery bill, saving on transportation, or cutting back on the amount of energy you use, every change can matter. Knowing how to survive inflation doesn’t mean pretending it’s not hard. It’s tough. But you’re tougher.
Disclaimer: The information contained within this article, including any references to companies or products, are for informational and educational purposes only and are not a substitute for individualized financial and/or legal advice. We are not a credit repair organization as defined under federal or state law and we do not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit. We make no representation that we will improve or attempt to improve your credit record, history, or rating through the use of the resources provided through the FreshStart Blog or CreditFresh website. The views and opinions expressed by any guest contributors, as applicable, are solely those of the author and do not reflect the views of CreditFresh.
