Americans Are Spending $445 More per Month. Here Are 8 Ways to Combat Higher Prices

If you're sick of rising prices, you're not alone.

Everywhere we look, higher prices are now the norm. Whether you're buying groceries, ordering food delivery, picking up more household cleaning supplies, or ordering a new couch for your living room, it's expected the price will be higher than it was a year ago.

For many Americans, inflation makes it more challenging to stretch their paychecks. After all, regular bills need to continue to be paid. If you're feeling stressed about inflation, you're not alone.

According to a September 2022 report from the Bureau of Labor Statistics, the Consumer Price Index rose 8.2% over the last year. You may be wondering how this increase has impacted the wallets of Americans.

A recent report by Moody Analytics noted that with these figures in mind, the typical American household would need to spend $445 more per month to purchase the same goods and services as a year ago. That's a lot more money -- $5,340 over a year.

Many households have been forced to adjust to paying more for everyday essentials, despite already struggling financially.

What can we do to better deal with price increases? Here are a few suggestions that could help you combat higher prices.

1. Plan your shopping trips

Never head to the store or start shopping online without first having a plan. By having a shopping list and an idea of what items are on sale, you can keep your spending to a minimum. Without a plan, it's too easy to overspend and buy things you don't need.

2. Negotiate your bills

If your bank account is hurting, now is an excellent time to see if you can negotiate the cost of some of your bills -- like your cellphone service bill or cable and internet bill. If you've been a loyal customer for a long time, you may be able to score a lower rate. Any small amount of money saved each month adds up and makes a difference.

3. Cut out unnecessary expenses

Most of us make unnecessary purchases, even if we follow a budget. Figure out if there are some expenses you're paying that you either aren't using or can skip. Some examples may include gym memberships or streaming apps you're no longer using. This is a quick and easy way to free up some of your money for other necessary expenses.

4. Use free rewards programs

By using rewards programs, you can earn discounts and freebies. Many fast food eateries, grocery stores, and gas stations have rewards programs that are free to join. If you're already spending money at these places, it doesn't hurt to utilize their rewards programs to earn free products or other valuable rewards.

5. Get a side hustle to increase your income

If you can commit some of your free time toward a side hustle, you may be able to boost your income. With extra money available to spend, you'll feel less strain as you continue to pay higher prices. Many side hustles are flexible, allowing you to make extra money in the evenings or on the weekends without disrupting your routine.

6. Buy costly purchases during sales

Of course, some expenses pop up out of nowhere. But other times, we know that we have an expensive purchase coming up. Waiting to buy expensive purchases until they're on sale during big sales like Black Friday, Cyber Monday, and Prime Day is a great way to save.

7. Use rewards credit cards

Another way to soften the impact of inflation and earn rewards is using rewards credit cards. You can earn cash back or other rewards on your regular spending. You're missing out if you use credit cards but don't have a card that earns rewards.

8. Spend less with coupons

Coupons may feel old school, but they still exist. These days, it's easier than ever to use coupons. Coupon apps make it easy to find coupons and promo codes to save money when shopping online. Additionally, many grocery stores have free coupons in their mobile apps that take only seconds to clip and use.

Higher prices aren't going away anytime soon, but we can make small changes that help us keep more money in our pockets. Check out our personal finance resources if you're looking for additional ways to save money.