Budgeting in a Tough Economy: Tips That May Help

The United States economy goes through cycles. However, even in prosperous times, some suffer. Furthermore, even in bad times, some prosper.

Currently things seem to be getting tougher for the average person. The middle class and poor persons seem to be suffering, while the wealthy remain relatively prosperous.

Prices for basic necessities such as food, housing, and health care seem to be rising much faster than wages for the working class.

The United States minimum wage of $7.25 per hour hasn’t been raised since July 2009. It’s true that most jobs pay more than the minimum wage. It’s also a fact that the majority of states have set higher minimum wages than the federal wage, according to the National Conference of State Legislatures (NCSL).[*] However, many states, including my state of Kentucky, have not.

Furthermore, many low-wage jobs are part-time and do not provide benefits such as paid vacations and health insurance.

The advance of artificial intelligence is also changing the marketplace and expected to continue to.

We can try to plan ahead for the unexpected. But we still sometimes face unpleasant surprises. I know from experience.    

What can we do when suffering from a financial setback?   

Ways to Cut Costs

We can do many things to reduce our expenses. The specifics vary depending on the individual. But the list below may give you some ideas:

Cook and eat at home instead of consuming restaurant foods. Prepare dry beans, rice, cornbread, etc., instead of more expensive meats and processed grains.

Walk, bicycle, use mass transit, and car pool. Drive your car less. Sell your car if that’s reasonable.

Wear clothing longer before discarding it. Buy it cheaper at places like Goodwill when feasible.

Downsize to a smaller house or apartment. Live with relatives. Become roommates with a close friend. Even consider a homeless shelter as a temporary alternative to high rents, putting items in storage with friends, relatives, or a small storage facility.

Stop using tobacco, alcoholic beverages, and any other unneeded drugs. Millions have done it.

Use a public library to check out books and DVDs, read magazines, take free classes, use the Internet on a public computer, etc., instead of paying for such things.

Visit local parks to hike, play ball, and do activities instead of spending money for entertainment.

Reduce cell phone data use and change cell phone plans.

Eliminate subscriptions to things not used enough.

Consider giving up cable television. The Internet, DVD players, and even radio can be substitutes.

Play old-fashioned card games and board games instead of buying and playing video games.     

Ways to Increase Income

Increasing income is another way to cope. It may be tougher than cutting costs. But it is doable.

Sell unneeded items via Craigslist, Facebook Marketplace, a yard sale, etc., to generate money.

Take on a second job part-time. Is there something you enjoy doing that pays decently?

At your current job seek a pay raise, more hours, or a better position.

Change careers. Do something else you already know how to do or find something you can learn to do.

If unemployed, devote more time to the job search. Be open to a variety of possibilities.

Seek food from food banks.

Seek health care from a free clinic.  

Seek financial aid from your religious place of worship, relatives, friends, or a government agency.

Budgeting

Set a budget and seek to stick to it while realizing that unexpected expenses or job losses can occur. Listing everything one spends money on sometimes yields some surprises. We may spend more on certain things that are unnecessary than we thought we did.

Saving even coins such as those pictured below can add up to significant money over time.

Closing Thoughts

As a Christian, I am a firm believer in the power of prayer. I think it’s the greatest power available to we human beings. Praying can lead to insights that may solve financial problems.

But don’t use prayer as a substitute for needed actions. God gifts each of us with resources to use on our own too.

While I write from what I have experienced or learned, lots of other information sources are available to you besides me. For example, numerous online articles discuss budgeting, cutting expenses, increasing income, etc. Parents, especially parents with children, face different needs than single persons such as myself.  

Finally, know that help is available from government agencies, charitable organizations, relatives, friends, neighbors, etc., when it is sought.

DISCLOSURE: My second job is as a part-time store clerk/customer service representative at a retail store.

ENDNOTE:   

[*] “State Minimum Wages”; National Conference of State Legislatures (NCSL); updated September 30, 2025; webpage accessed December 31, 2025; https://www.ncsl.org/labor-and-employment/state-minimum-wages