In the U.S. inflation continues to rise (according to a report from the Labor Department on Wednesday 10 August 2022). The U.S. economy has entered a recession, contracting by 0.9 per cent in the second quarter, having already shrunk by 1.6 per cent in the first quarter of 2022.
In response of these pressures this, research from Forbes Advisor confirms that many people are being forced to make hard choices as they navigate an increasingly expensive economy, with prices remaining much higher than they have done in recent years.
Insights taken from the latest Forbes Advisor study of 2,000 people, highlighted that people are seeking to cut costs and look for other ways to save money.
In response to this, Forbes Advisor has revealed key ways people are changing their spending behavior amid inflating costs. For instance, consumers report how they have adjusted their consumption in relation to almost everything, from transport, to dining out to date nights.
As examples, more half of people have cut back on non-essential items when shopping for groceries (51 percent) and almost half (45 percent have changed their grocery shopping, to buy cheaper alternatives.
Further to this, consumers are opting to minimize how many groceries they purchase. Overall, two in five people are buying less groceries as a result of inflating food prices (39 percent) and one third have reduced their weekly grocery budget (31 percent).
However the economic issues have not impacted on everyone since one in six (17 percent) people claim not to have adjusted their spending when shopping for groceries.
As well as groceries, more than half (55 percent) of those surveyed are reducing the frequency of non-essential journey’s to save money on transportation. While, one in five (20 percent) are cutting back on the number of long journeys they are taking.
However, some have adjusted how they get around, as more than one in six (16 percent) are walking more frequently to reduce fuel and transportation costs. With rising costs, some people may struggle to fill up a full tank at once, as they await more cash. As a result, almost one quarter are filling up less fuel in their cars to save spending in one go (24 percent).
Another trend is with changing eating habits. When dining at home, half have cut down on takeouts and are opting for more home cooked meals (49 percent). When it comes to cooking, one third are meal planning more regularly to avoid wasting food (32 percent) and almost one in three are cooking with more basic ingredients, instead of pre-prepared options (29 percent).
Food waste is clearly on people’s mind, when it comes to how they plan to save money. More than two in five are using leftovers to avoid food waste (46 percent) and one in six are batch cooking more regularly (15 percent).
