When prices keep rising
Prices keep rising. Where can I spend less?
Start by looking, not cutting. Most households can find real money in charges they barely notice, before they give up anything they care about.
This page shows where the average household's money goes, the order to trim in, how to lower the bills you cannot cancel, and what to do with the savings.
By Dan Whelan, founder of New World Survival
Researched from government agencies, university extension services, and other published sources. See our sources
01 · Where it goes
Where does a household's money actually go?
The Bureau of Labor Statistics asks thousands of households every year. In 2024 the average household spent $78,535 in total. Food alone came to $10,169 of that.
$10,169
All food, per year
$6,224
Groceries
$3,945
Eating out
Averages hide a lot, and yours will look different. That is the point of the next step: before you cut anything, find out where your own money goes.
02 · Look before you cut
Where do I start cutting?
With a month of your real spending, not a budget template. Pull last month's bank and card statements and sort every charge into a few groups: bills that are the same every month, bills that change, things you chose to buy, and money set aside.
Watch for anything that surprises you. A charge you did not expect is usually the easiest money to get back, because you were not getting much for it.
03 · The small leaks
Which cuts are the easiest?
The ones you will not miss. Work through them in this order, because each takes less effort than the one after it.
1
Recurring charges you forgot
Streaming services, apps, memberships, and free trials that turned into paid plans. Cancel the ones nobody used last month.
2
Convenience you pay for out of habit
Delivery fees, takeout, single-serving snacks, and bottled drinks. The cook at home page shows what the home version costs.
3
Trips that could be one trip
Rutgers Cooperative Extension points out that driving less cuts spending on gas, insurance, and maintenance. Combining errands is the simplest way to start.
The course module on scams, subscriptions, and pressure covers how to find and manage recurring charges.
04 · The big bills
Can I lower the bills I cannot cancel?
Sometimes. Insurance is the usual place to look. Rutgers Cooperative Extension suggests comparing premiums and coverage every two to three years, both to find a better deal and to have something to bargain with at renewal.
A higher deductible usually lowers the premium. The same Rutgers guidance adds the condition that matters: do it only if you have the deductible amount in emergency savings. Otherwise a single claim can cost you more than the premium you saved.
The site's insurance basics guide explains deductibles, coverage, and what to compare when you shop.
05 · Keep what you save
Where should the money I save go?
Somewhere on purpose, or it tends to disappear into everyday spending. Move each saving into a separate account as soon as you make it, and give that account a job.
Rutgers Cooperative Extension recommends naming savings accounts for what they are for, such as a car fund, because a named goal is easier to stick with. For most households the first job is a cushion, so the next surprise bill does not land on a credit card.
Household savings covers how big a cushion to aim for and where to keep it.
06 · Where this fits
If trimming is not enough
Spending less helps when the budget is tight. When income has dropped or bills are already behind, these guides are written for that situation.
Reduced income
When hours or pay have dropped and the whole budget needs a second look.
Managing debt in a hard season
What to pay first, your rights with collectors, and where honest help is.
Utility shutoff
A disconnect notice arrived. Payment plans, assistance, and what to do today.
Frugal tips
Small household moves, each with the math and when it is not worth it.
The other two moves against rising prices
07 · Common questions
What people usually ask
How much does the average household spend on eating out?
The Bureau of Labor Statistics Consumer Expenditure Survey put it at $3,945 in 2024, against $6,224 on groceries and $78,535 in total spending.
What should I cut first when prices go up?
Look at a month of your real spending first. Then start with what you will not miss: forgotten subscriptions and memberships, convenience costs like delivery fees, and extra trips that could be combined.
Should I raise my insurance deductible to save money?
A higher deductible usually lowers the premium, but Rutgers Cooperative Extension advises doing it only if you have the deductible amount in emergency savings.
08 · Sources
Where these numbers come from
- Bureau of Labor Statistics, Consumer Expenditure Survey, 2024: total spending, all food, food at home, and food away from home.
- Rutgers Cooperative Extension, Barbara O'Neill, Tips to Beat Inflation and Save Money, April 2023.
Last reviewed: October 15, 2026. Consumer Expenditure Survey figures are averages for all U.S. households (what BLS calls consumer units), so your own numbers will differ. This page is not financial advice.
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