With the prices for just about everything continuing to increase, it’s no surprise that the cost of living has risen at a rate that isn’t always easy to keep up with. In fact, by the end of 2022, the cost of all goods and services had risen by 6.5 percent from the previous year. These expenses, which can include housing, food, health care, transportation, and entertainment, are typically unavoidable, but the strategies below could help you lower your cost of living and establish greater financial security.

Move to a new area

One of the best ways to reduce your cost of living is move to a less expensive city or town. Every year, several different organizations release a list of the most affordable places to live. These rankings tend to vary greatly based on differing criteria, but you can find the following cities in the top twenty-five on both the Niche and US News & World Report 2022 reports:

• Fort Wayne, Indiana
• Buffalo, New York
• Beaumont, Texas
• South Bend, Indiana
• Pittsburgh, Pennsylvania

These cities all have lower costs of living, many offering housing prices below the national average as well as cheaper health care, taxes, and groceries. While there are other factors to consider before making a big move, such as public-school systems and employment opportunities if you or your partner aren’t a remote worker, doing so can give you a chance to stretch your paycheck and save more each month. Making the decision to move is never easy, but it’s one that may come with more benefits than drawbacks.

Reduce your grocery bill

The price of food-at-home, which includes items purchased from a supermarket or grocery store, was 11.8 percent higher in December 2022 than the previous year. You’ve probably felt the impact, noticing a steady increase in your grocery bill over the past months. While some of these higher prices are the result of the Federal Reserve’s attempt to fight inflation with various interest rate hikes throughout the previous year, some items increased for other unrelated reasons. For example, more than 43 million egg-laying hens were infected and subsequently killed by the bird flu last year. This resulted in a significant decrease in egg production, causing egg prices to reach a 210 percent year-over-year increase in December.

As the costs of goods continue to fluctuate into 2023, try reaching for store-brand items, buying nonperishables in bulk, or opting to use simpler recipes with fewer ingredients. And instead of buying a carton of eggs, consider getting a container of liquid eggs or egg whites, which often contain more eggs than a regular carton. Many stores also tend to offer weekly specials or rewards programs that you can take advantage of to help you save a little bit more during each trip to the grocery store. Being strategic with what you do and don’t buy may require some time and creativity, but it can help you find items that work better with your current budget.

Choose to stay in

Gas prices fluctuated a great deal last year, crossing a record national average of $5 in June. While many cities and states saw prices drop back down by the end of the year, the general volatility of gas costs makes it a good idea to stay home when you can. So instead of going downtown for coffee or dinner, opt to make your own at home. Not only will this cut down on your overall fuel usage, but it will also reduce how much you spend on food away from home, which increased in cost by 8.3 percent year over year in December.

When you choose to stay in, you’ll also actively decrease your entertainment expenses, including movie outings. When you consider the fact that the average ticket price reached $11 in 2022, a 20 percent increase from 2019, it makes it a little easier to stay home and watch a movie on one of your streaming services or play a board game with family and friends.

Watch your energy use

By the end of 2022, energy services, which include the cost of electricity and utility gas services, rose by 15.6 percent from the previous year, making it important to take steps to conserve power and lower your bill. The US Department of Energy estimates that energy-efficient upgrades, including LED lightbulbs, ENERGY STAR appliances, and smart thermostats, could save you around 25 percent annually.  An LED bulb alone uses 75 percent less energy but lasts up to twenty-five times longer. While making these changes often comes at a higher up-front expense, the monthly savings could have a large impact on your cost of living, helping you to save more.

As you find ways to actively lower your cost of living, you may find that you have more each month to put toward savings or spend on the things that you want. And if you’re looking for more ways to improve your financial situation, be sure to work with a financial advisor who can assess your finances and help you better understand where and how you can cut costs.