Rachel Cruze: Prioritize These 4 Essentials Despite Inflation
Written by
Ashley Donohoe
Edited by
Jenna Klaverweiden
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With the U.S. Bureau of Labor Statistics reporting an elevated 3% annual inflation rate, many Americans are concerned about how they’ll afford rising prices for many items. This puts the spotlight on cutting back on luxuries and finding easier ways to cover the essentials.
Financial expert and author Rachel Cruze recommended prioritizing your “four walls” if you’re having trouble with your finances or you want to put more cash toward goals like eliminating debt. These include your housing, food, utility and transportation expenses.
In a recent YouTube video, Cruze offered tips on how to save money in these areas so inflation doesn’t hurt your wallet so much.
Food
Since you can’t go without food, focus on finding grocery deals that make the expense more tolerable. Cruze explained that your grocery store choice is crucial. While it’s less convenient, going to multiple places can be smart, especially when you find good sales and coupons.
Another strategy Cruze suggested is picking food items that offer value or last a long time. Prioritize staples such as canned foods, dry goods and vegetables over luxuries like meats and specialty treats.
Plus, you can check out grocery store rewards programs and use cash-back apps like Fetch and Ibotta. Skipping restaurant meals is also smart since the inflation rate is higher for food away from home (3.4% versus 1.9%).
Housing
Since many people have fixed mortgage payments or leases, Cruze acknowledged that housing costs require more creativity to address than other essentials.
Cruze suggested temporarily finding a roommate if you have the space and don’t mind giving up privacy. This move could halve your housing costs. And if you’re a renter, getting a longer lease term is wise for locking in your monthly rate.
Other potential money-saving strategies involve more extreme steps, such as downsizing or moving out of your area.
“Usually when you get closer to a city, the more expensive things are, but the further out you can be, you’ll probably save some money,” she said.
Utility Bills
According to Cruze, some easy changes to your habits can make covering rising utility costs more bearable. For example, you could run your dishwasher and washing machine only with full loads and avoid leaving appliances, lights and water faucets on when unused.
Another tip is to change your thermostat temperature when you’re not at home. You can use a smart thermostat to program the away temperature to be lower in winter and higher in summer. According to Energy Star, you might cut your cooling and heating costs by 8% this way with a certified model.
Transportation
To cut gas costs, Cruze recommended joining gas reward programs, such as those at Exxon, Kroger, Costco and Shell stations. While you’ll usually save only a few cents per gallon, every bit helps, and these programs often provide discounts for other purchases.
Also think about where you’re stopping to get gas. “When you go to a more affluent area of a city, it’s going to be more expensive, so maybe you drive a little ways down the interstate — a half a mile even — and that could save you $5 to $10 when you’re filling up your tank,” Cruze said.
While this is less convenient than simply heading to your usual station, the savings can be worth the work. You can also try apps like GasBuddy and Way to compare fuel prices.
Finally, you can consider using public transportation, carpooling or becoming a one-car family. These could be temporary steps until your budget has more room.
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