8 Ways Frugal People Are Living Like There’s Already a Recession
Written by
Emily Fowler
Edited by
Gary Dudak
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Fears of a recession are growing louder, and many people aren’t waiting for an official announcement to make changes. Rising prices on essentials like rent, food and healthcare are already forcing tough choices, and workers are finding ways to survive economic uncertainty long before a downturn becomes official.
According to a study from Lance Surety Bonds, people are slashing spending, picking up extra work and moving to cheaper locations to stay ahead of rising costs. The eight strategies below show what it really takes to recession-proof a household when paychecks can’t keep up with inflation.
Cutting Personal Spending
More than half of frontline workers (58%) have cut personal spending to the bone. Eliminating non-essential expenses is a recommended first line of defense when paychecks don’t stretch like they used to.
Picking Up Side Hustles
More than half are bringing in extra income through side gigs. They’re not alone; 41% of U.S. consumers now have supplemental income streams, according to PYMNTS, as people try to close the gap between wages and cost of living.
Dipping Into Savings Early
A third of those surveyed said they’ve already dipped into savings. When income falls short, savings becomes a lifeline, but one that needs to be rationed carefully. It’s best used to cover essentials like housing, food or utilities, not to maintain non-essentials that no longer fit the budget.
Pausing Saving or Investing
Unfortunately, 27% have paused contributions to savings or investments as prices for essentials climb. With basic expenses climbing and wages remaining flat in many industries, long-term planning often gets pushed aside to manage short-term survival.
Working Longer Hours
A quarter have taken on extra hours, with 21% working 15 or more extra hours each week. That’s the equivalent of nearly 100 full workdays a year, a temporary fix for shrinking purchasing power, but one that risks burnout.
Selling Personal Belongings
A quarter of people surveyed reported they have sold off tools, electronics or vehicles to make ends meet. With figures from the New York Fed showing that U.S. household debt is now at $18.2 trillion, selling unused assets can be a smarter move than borrowing at high interest.
Taking on Personal Debt
Incurring personal debt to manage rising costs has jumped as well. If borrowing is unavoidable, focusing on the lowest-interest options available and creating a strict repayment plan before taking on new debt can help limit long-term damage.
Moving to Cheaper Housing
While it may be a stretch for some, 9% of the workers surveyed have relocated to less expensive areas. According to Realtor.com, August 2025 marked the 25th straight month of year-over-year rent declines for 0-2 bedroom properties. Additionally, the median asking rent in the 50 largest metros is $1,713, nearly 3% lower than its peak in August 2022.
So, while it may be a stressful task, now might be the right time to look for more affordable housing. Sometimes moving even a short distance can save hundreds each month, and that extra cash can go straight toward rent, bills or debt.
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