You Should Prioritize These 4 Expenses Despite Inflation, According to Rachel Cruze

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Inflation continues to impact Americans and their ability to afford necessities, like groceries. The U.S. Bureau of Labor Statistics reported prices have increased another 3% in the last year.

Rachel Cruze, a financial expert and Ramsey Solutions personality, explains that when inflation negatively impacts people’s budgets, there are a few expenses they should prioritize. These expenses include food, home, utilities, and transportation.

The Ramsey team calls these expenses “The Four Walls.” These are the items to prioritize, above clothing, vacations, and other non-essential expenses. If people can find ways to save money on these four expenses, they can meet their family’s immediate needs.

Cruze outlined several money-saving ideas in a recent video called “4 Expenses to Prioritize Despite Inflation.” Here are some of her top tips when it comes to affording housing costs, groceries, transportation, and utilities.

Food

Cruze explained that the best way to save money on food is to shop around for deals. That might mean visiting multiple grocery stores to gather your food for the week.

It’s not convenient but grocery stores run different promotions each week. By visiting several, you can take advantage of the weekly sales, even if it takes you more time. 

Cruze also suggested changing how you eat and focusing on food that has a longer shelf life, like rice and pasta. She also suggested saying no to some of the extras at the grocery store, like popsicles, and focus on the items you truly need.

Housing

Mortgage payments and rent make up one of the largest spending categories in most people’s budgets. One tip Cruze suggested is to sign a longer lease if you’re renting. Sometimes you can get lower rent if you agree to stay in a place for longer.

Another option is downsizing, especially if you own your home. While many people might not want to move, sometimes making hard choices can help people achieve their long-term financial goals.

There is also the option of renting part of your home, taking on a roommate or renting out the storage areas of your home to other people. This can help people add some extra money to their monthly income.

Utilities

Cruze also gave several tips for saving money on utilities. Energy costs are rising. In fact, the U.S. Energy Information Administration projects that the price for power will rise 2% in 2025 compared to last year.

The Ramsey personality suggested only running the dishwasher and washing machine until they’re full. Another suggestion is to get a smart thermostat that automatically adjusts the temperature when people leave their homes. People should also get into the habit of turning off their lights and unplugging small appliances when they’re not using them.

While it might not seem like these new habits would make a big difference, the savings add up over the course of a year.

Transportation

AAA published the Your Driving Cost study, which showed that the total cost of owning a new car is $12,297 annually, including depreciation and interest costs on payments. 

Many people need vehicles to get to work, so it’s important to find a way to lessen these high costs. One option is to use an app like GasBuddy, which helps people find the cheapest gas station nearby. People can also carpool with co-workers and use public transportation. If a spouse works from home, it might even be possible to become a one-car household. 

If people’s current vehicle is more expensive than they can afford, they can also downgrade their vehicle. There are many reliable vehicles that can still get people from home to work that might not have the latest technology but still work effectively.

Final Thoughts

Inflation is impacting every spending category from groceries to healthcare to travel. If people struggle to afford their current lifestyle, Cruze recommends focusing on the four walls: food, housing, utilities, and transportation. Find ways to cut costs, find less expensive food, monitor energy usage, and make more money-conscious decisions when it comes to vehicles.

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