Life’s basic necessities — like food, shelter and transportation — are more expensive than ever and consumers feel it. Since 2020, overall prices are up 25% due to inflation. And it can be hard to keep up, especially given that wage increases are flat overall since then.¹

While not always easy, there are steps you can take to help keep up with the high cost of living. First, make sure you have a good handle on your expenses.

Create and stick to a budget

Set a budget and track your spending. Evaluate what you are spending on necessities and the extras, some of which may have become recurring expenses that you don’t need or enjoy anymore. Possibilities for the chopping block: Subscription streaming services, seldom-used gym memberships, daily coffee from a coffee shop or frequent dining out.

Once you get a good grasp on your spending habits, move forward with these tips that’ll help you cut expenses and stretch your dollars — and possibly reduce your environmental footprint.

Groceries and food

Food prices are one area where increases are particularly notable. Since February 2020, grocery prices have jumped 29% cumulatively.² Certain items cost more and have increased more than others, but there’s no way to get around the increases.

For 2026, here’s what the United States Department of Agriculture (USDA) notes that a moderate-cost food budget looks like: A single adult should aim for about $328 to $388 per month depending on age and gender. A couple can expect to spend around $800 monthly. A family of four including two adults and two older children should budget approximately $1,500 per month. These numbers assume you’re cooking at home and not eating out.²

It’s a good rule of thumb to keep your produce and pantry well organized so that food doesn’t expire. Look through your fridge and cupboards before you head to the grocery store — that way you won’t double up on items you already have.

When you get to the grocery store, buy private label brands and use loyalty card points. In store aisles, look for the cheapest options above or below eye level, where the priciest options tend to be. Buy in bulk and compare prices of things per ounce, not unit price. And, most importantly, create a meal plan with set ingredients and don’t deviate from your shopping list.

Utilities costs

Utilities take a big bite out of your monthly budget. The average monthly cost of utility bills in the U.S. is $611. Most households spend around $401 per month on essentials like electricity, natural gas, water and sewer. But when you add internet, phone, and streaming services, that increases to $611 per month.³

Here’s a breakdown of the most significant energy use by category:⁴

• Air conditioning and heating: 54%
• Water heating: 16%
• Refrigeration: 4%
• Lighting: 4%
• Appliances and electronics: 23%

Tips to improve energy efficiency

Request an energy audit. An energy audit can be a productive first step toward lowering expenses. An inspector can examine your entire home for inefficiencies, such as air leaks, poor insulation and inefficient appliances, and suggest fixes for them. Check with your energy provider who may offer an energy audit for free or a discount.

Only heat or cool your home when you're there. More than half of the average utility bill goes towards heating and cooling, so turning off the heat or air while you're out can help make a big impact. If you have a newer, programmable thermostat, schedule it to your preferred temperatures only when you’re home.

Unplug items when not in use. One of the easiest ways to cut energy use and costs is to reduce “vampire energy.” Even when not in use, electronics and small appliances still draw standby power. Unplug your chargers, TV, small appliances and other devices, and turn off power strips when not in use. The savings can add up, and it’s better for the environment.

Reduce hot water use. Water heating accounts for about 16% of your home energy use.⁵ Steps to help reduce that include using cold water to wash your laundry, insulating pipes and turning down the resting temperature of your water heater.

Transportation

Transportation is another significant monthly cost for Americans. With car payments, insurance, maintenance, repairs and gas, it adds up quickly. If public transportation is not an option, a few ideas to save include reducing your speed when driving, combine trips — group your errands to reduce overall driving time, walk or bike, or carpool when you can.

These small steps can make a difference in the long run. Do what you can to help keep pace with the cost of living and feel more in control.