How To Save Money When Prices Are Going Up

Prices for food, rent, and energy are skyrocketing, thanks to 40-year high inflation. If you’re living on a fixed or low income, you’re probably feeling the pinch.

AARP Foundation has been helping people secure the essentials for more than 60 years. To help you get some relief from today’s higher prices, we’ve outlined a step-by-step plan to follow.

1. Make a budget

It may not sound like fun, but writing down your expenses will help you see where your money is going and how you may be able to find some wiggle room.

Your monthly expenses will include both fixed and variable costs. Fixed costs, like your rent or mortgage, utilities, and phone bill, are usually the same from month to month. Variable costs are those that change, such as your spending on groceries, hobbies, clothing, eating out, and entertainment.

Download a copy of the AARP Foundation budgeting worksheet and fill it out. Averaging the past three to six months of your spending will help you figure out where you may be able to trim some of your variable expenses.

2. Boost your cash flow

Reducing some of your spending is one way to boost your cash flow. But when you can’t do that, it may be time to look at ways to earn some extra money.

If you’ve never explored working in the gig economy — where you earn money for doing short-term jobs — there’s never been a better time to do so. AARP Foundation has a website designed to help you learn how to make extra cash each month with a side hustle. The Freelancing Resource Center has helpful tips and guidance for making freelancing work for you, including a list of trusted online platforms where you can find work.

3. See what benefits you’re eligible for

There are lots of helpful programs available to help you lower your living expenses during these tough times. You’ve already paid into these programs by paying taxes, so you’re not taking away these benefits from someone else.

Because of inflation, some eligibility requirements have changed to keep up with our changing economy, especially for older adults. When looking for ways to make ends meet, it pays to explore your benefits options for food, healthcare, and utilities.

Based on your age and/or income, you may qualify for:

• Free grocery money through SNAP
• Lower medical expenses through Medicaid
• Discounts on your internet and cell phone bills