Financial experts have identified four monthly expenses that consumers should cut first to save money as inflation continues to rise. With inflation reaching 3.8 percent in April, its highest level since 2023, many households are feeling the pinch. According to consumer data firm J.D. Power, 87 percent of consumers are anxious about rising prices, and 86 percent have already reduced spending on essentials like gas and groceries.
Cut Food Delivery Services
Nathan Haas, a financial advisor and owner of Haas Trade Advisors, suggests targeting food delivery services as a primary area for cutbacks. "Where I see my clients can make the biggest cuts are in eating out and food delivery services," Haas said. "By reducing the amount of eating out and preparing meals at home, most people can easily save hundreds of dollars." A 2025 survey by CNET found that the average American spends around $2,841 annually on eating out and takeout. In a two-person household, halving that expenditure could save approximately $237 per month.
Switch Grocery Stores
Consumers can also save significantly by changing where they shop for groceries. A February 2026 study by Consumer Reports found that switching from Walmart to Aldi can save an average of 8.5 percent on grocery bills. Even greater savings are possible at warehouse clubs like Costco and BJ's, where savings can reach around 21 percent, though these require a paid membership. Those who shop at Whole Foods could see their bills drop by up to 50 percent by switching to Aldi. Haas also recommends trying store-brand items instead of name brands, noting that many non-name brands taste similar or better.
Change Mobile Phone Provider
Mobile virtual network operators (MVNOs) offer another opportunity for savings. These providers operate on major networks like T-Mobile and Verizon but at lower costs. Thad Hwang, CEO of Goji Mobile, explains that switching from a brand-name carrier to an MVNO like Metro by T-Mobile or Cricket Wireless can save consumers $70 to $100 per month. "Most never notice a difference in coverage," Hwang said. Reyna Gobel, founder of Wallets and Waistlines, saved $50 a month by switching to Optimum, an MVNO, paying $20 monthly instead of $70.
Monitor Small, Unplanned Expenses
Summer often brings impulse purchases like sunscreen, ice cream, and last-minute outings that can drain a budget. Dr. Erika Rasure, chief financial wellness advisor at Beyond Finance, advises keeping track of these unplanned expenses. "Summer brings a mindset of celebration and escape, which makes it easier to justify purchases that don't fit your budget," Rasure said. "The dopamine rush you get from travel or experiences fades quickly when the bills arrive." Identifying these "little leaks" can help consumers tighten their budgets.
Vipin Porwal, founder of shopping rewards app Smarty, notes that consumers are becoming more conditioned to seek low prices and value. "This summer with tighter budgets for most consumers, every purchase is critical and every dollar counts," he said. By cutting these four expenses, households can shore up their finances and navigate the current economic climate more effectively.
