In 2025, President Trump’s tariffs and subsequent rising costs everywhere from the grocery store to the car shop may have you taking a closer look at your own budget and how you can free up some cash. You may be wondering if you spend too much in certain areas, and with tariffs on imported goods ranging anywhere from 10% to 40%, you probably are.
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The good news is that even for necessities, there are steps you can take help offset rising prices. GOBankingRates got some expert advice on simple ways to reduce your spending.
Review Your Expenses and Make Changes
One piece of advice often given by financial advisors is to regularly review your expenses and adjust your budget. Once you’ve created this newly streamlined budget, analyze your transactions to understand exactly where your money is going. Categorize spending into “needs” and “wants” to identify areas for reduction, and prioritize the needs over wants to free up some savings.
“My wife and I do a full review of our expenses about once a year,” said Kevin Estes, founder of Scaled Finance. “We find something every time. It could be a subscription we no longer use, a service we thought we’d cancelled or outright fraud.”
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Shop Smarter
One place you may not think is easy to reduce your spending is at the grocery store. If so, perhaps it’s time to give meal planning a chance before you make your next trip — or don’t even make the trip at all.
“Grocery pickup and delivery have cut our bills,” Estes said. “We purchase fewer impulse items by avoiding the store.”
Kristy Kim, CEO of TomoCredit, had two other ideas for cutting back on grocery bills. One idea is to shift to private labels and store brands — which Kim said can often save you 20 to 30%. In addition, you could try buying non-perishable essentials such as toilet paper and cleaning supplies in bulk to enjoy long-term savings per unit.
Re-evaluate Fixed Necessities
Kim said to take a closer look at your fixed necessities such as utilities, phone plans and insurance. You can consider negotiating with your current providers or switching to new ones.
Remember that your budget is an evolving tool. Revisit and fine-tune it regularly as prices, tariffs and circumstances change, which in this economy, is likely to keep happening.
Take Care of Your Wardrobe
Another way to cut back on your spending on necessities is to take good care of your clothes and shoes. If you buy quality items, which doesn’t mean the most expensive, you can expect them to last longer with good care and washing.
Caitlyn Moorhead contributed to the reporting for this article.
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This article originally appeared on GOBankingRates.com: 4 Smart Ways To Save on Necessities Amid Rising Prices
