Where to Cut Costs in 2023… And Where Not to

| Updated on March 27, 2024

It’s impossible to overstate just how expensive things have gotten in 2023. At the start of the year, we were dealing with record-high inflation. Unfortunately, that record was left in the dust ages ago. Gas prices are most reported in the news, but everything costs more today than it did even a month ago.

For this reason, many Americans are looking to cut costs. This is a great idea, but some costs you cannot afford to cut. Here are some of the things you can cut costs on… as well as the costs you need to keep.

Cut Costs: Redundant Insurance

Insurance is absolutely necessary as an American. We’ll go into why exactly you can’t get rid of your insurance in 2023. But some people have more insurance than they need. For example, while you should make sure your mobile phone is covered in case of theft, you should avoid getting an expensive insurance plan from your mobile provider. Your phone should already be covered by renters insurance and technical failures are covered by a warranty.

You should also make sure that you are not overinsuring your possessions. The amount of cover you get from your renters or homeowners insurance policy should not exceed the cost of your things. Take an inventory in your home and calculate how much your possessions actually cost to see if you can cut down your contents cover.

Don’t Cut Costs: Essential Insurance

However, you should never cut off your basic insurance policies. Many people don’t like paying for insurance, and this is understandable. After all, you’re paying for something which only provides returns if something goes wrong. But insurance has become crucial in today’s world.

Nowadays, service providers often price their products higher in line with what insurance will pay. If you don’t have insurance – be it health insurance, renters insurance, car insurance, or any other kind – you will be in for an unpleasant surprise when your bill comes. Insurance is necessary if you are to stay financially afloat.

Cut Costs: Dining Out

Very few people enjoy cooking at the end of a long work day. It is far easier to go to a restaurant or order takeout. However, with prices rising, this is something that may need to go. Cutting down on dining out might mean more work for yourself, but at some point, you may no longer have the option. With rising prices, restaurants need to charge higher margins, and you might soon find them unaffordable.

Don’t Cut Costs: Healthy Food

You can save money by buying fast food or heavily-processed food, but this is not worth it. You’re putting your health at risk by eating this kind of food on a regular basis. By spending a bit more on healthy food, you’ll find yourself embracing a better diet. You may even end up saving on snacks that you would otherwise crave.

Cut Costs: Utilities

If you pay utilities in your rented place, you can cut costs by using less electricity and water. This is not actually all that difficult. Remember to turn off lights when you leave a room and don’t leave the TV on all day. Unplug devices when you’re not using them, as they become electricity vampires. You can also put a timer on your geyser which will prevent it from draining electricity when you’re not home or when you’re sleeping.

To save water, take shorter showers and turn off the tap when brushing your teeth. Put a bucket in the shower to collect water for your plants.

Don’t Cut Costs: Home Entertainment

But this does not mean you should keep your TV off at all times or avoid enjoying a long bath. Finding ways to entertain yourself at home will save you money, even if it means using your utilities a bit more than you otherwise would. When you go out to enjoy yourself, you’re guaranteed to spend more money. Avoid this pitfall and you’ll find yourself with more disposable income at the end of the month.
Prices are rising and it is becoming difficult even for the wealthy to keep up. Cut down on costs where you can, but do so with forethought and don’t undermine your quality of life. Also, be sure to consider new ways to make extra money on the side. A good side-hustle can help tremendously.

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