The 6 Bills To Cut First During a Recession — According to Experts
Written by
Gabriel Vito
Edited by
Amen Oyiboke
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Most people don’t need another lecture about skipping lattes or canceling Netflix. You’re an adult, and you already know how to cut back when you have to. The real challenge in a recession is deciding what to cut when every bill feels important and there are more than a dozen options staring you down.
That’s why we asked the experts. Instead of handing you another cookie-cutter checklist, we pulled together guidance from financial professionals who know how real budgets work. This article doesn’t just give you a list of bills to review — it also provides a framework for deciding which cuts make the most sense for you financially. The goal isn’t to shame you for small pleasures, but to help you cut smarter, prioritize with confidence and keep the parts of your life that matter most.
Start With a Framework: Budget for What You Value
Experts don’t always agree on how strict your budget should be in a recession. Some, like Andrea Woroch, a consumer finance expert, emphasize disciplined systems such as zero-based budgeting. Others, like Robert R. Johnson, Ph.D., CFA, argue that flexibility matters just as much because not every expense brings the same level of value to every person.
“A blanket prescription for all individuals on which bills or expenses to cut first ignores a big reality,” said Johnson. “I would say the common expenses that can be reduced depend entirely on the individual and what they value.”
Take coffee, for example. While it’s often criticized as a waste, Johnson noted it can mean much more than caffeine. “Quite often, and this is particularly true for retirees, it is more about a sense of community and fellowship than a caffeine fix.”
His bottom line: “You should budget for what you value and not for what society values. Spend money on what provides you with the most pleasure and cut back on those expenditures that provide you with less.”
This perspective doesn’t replace a budget — it frames how you approach the cuts. With that in mind, here are the bills experts most often recommend reviewing first.
1. Subscription and Streaming Services
Unused subscriptions are the lowest-hanging fruit. “Bills or expenses to cut first when tightening a budget in a recession are those that you don’t really need or use. This could include streaming services or subscriptions that have been stagnant for some time,” said Steve Azoury, ChFC and owner of Azoury Financial.
Branden Vernon, owner of Steward Financial Services, said: “Are you paying for multiple streaming services, or even duplicate accounts, without realizing it? Maybe that gym membership hasn’t seen you since the second month, or you’re still signed up for a ‘doughnut of the month’ subscription you forgot about.”
2. Lifestyle and Leisure Bills
Scaling back luxuries can free up cash without wiping them out. “Consider spacing out monthly nail or hair appointments to every six or eight weeks. Swap the weekly golf game for twice a month or skip that extra vacation this year,” Vernon suggested.
Azoury warned against cutting too aggressively: “You may have to do a little soul searching and understand that the math doesn’t work. You cannot spend more than you make. Again, don’t cut out everything at once. You’ll have to learn how to fight off the temptation of something that isn’t really necessary.”
3. Activity-Related Bills
Family activities and hobbies can be budget busters. Vernon recommended dialing them down, not eliminating them: “Consider scaling back private lessons from weekly to monthly or switching to a local league with lower travel and participation costs. These changes can significantly reduce spending without ending the activity altogether.”
4. Grocery Bills
Food is essential, but grocery spending has room to flex. “Where you shop can make a big difference,” Vernon said. “If you typically choose higher-end grocery stores, consider switching to a store that offers more generic or store-brand options. Small changes in where and how you shop can lead to big savings over time.”
5. Debt and Interest Bills
Debt payments, especially interest, can be some of the costliest bills in a downturn. “Often, companies will fight for your business,” Azoury said. “Call the providers and ask if they are willing to reduce your monthly payment. You can even call your credit card companies to see if you can get a lower interest rate on your debt.”
Woroch suggested using balance transfers strategically: “Transfer your current credit card debt using a balance transfer credit card to avoid paying interest for up to 21 months. This move buys you time to get through a potential recession without more fees adding to your debt loan.”
6. The Bill You Pay Yourself
Experts also stress treating savings like a bill. “When approaching a budget, consider the zero-based budgeting method,” Woroch said. “This style of budgeting assigns a job to every dollar, including savings and debt repayments, so your money is all accounted for.”
She also advised pausing long-term goals if needed: “Saving cash in an emergency fund is crucial during times of uncertainty, which may require you to pause saving for long-term goals like retirement or college while you save.”
Conclusion
Experts may differ on whether to budget with strict discipline or with more flexibility, but they agree on one thing: cutting blindly rarely works. This article gives you both a framework for choosing and a list of bills worth reviewing first.
Start with the expenses you don’t use, scale back where you can, and treat savings as essential. And as Johnson reminded us, the best cuts are the ones that come from what matters least, not from what makes life worth living.
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