How to save money when the cost of living is rising? Advice for employees
2025-05-15
3 MIN READING
TABLE OF CONTENTS
The rising cost of living is prompting many people to look for ways to better manage their household budgets. Rising prices of products, services, and energy are a challenge that affects us all. No wonder we are increasingly asking ourselves: how can we save money wisely without compromising our quality of life? In this article, you will find practical tips to help you plan your expenses better and regain financial control over your everyday life.
01
Begin with financial awareness
Just as a good manager knows their team and the market, you should get to know your budget and daily financial habits. Start by analyzing your spending history: check your banking app to see what you actually spend your money on. How much of your income do you spend on necessities? Are you able to save regularly? How much do your daily pleasures cost you?
Write down all the data in black and white to see the full picture. The 50/30/20 rule can be helpful:
- 50% of your income goes towards necessities (rent, food, bills),
- 30% towards pleasures,
- 20% towards savings and debt repayment.
You can adjust the proportions to suit your situation, but it is important to prioritize needs and savings. You can keep track of your budget in an app or spreadsheet – the key is to be consistent. Plan your expenses in advance and write down how much you spend and what you spend it on.
02
Small decisions that make a difference
You don’t have to give up your favorite coffee or gym membership. Sometimes, small changes in your daily habits are enough:
- Plan your shopping and meals – a shopping list is a simple way to avoid impulse spending.
- Cook at home, including lunch for work – eating out, even occasionally, generates significant costs.
- Compare prices – both in brick-and-mortar stores and online.
- Look for cheaper alternatives – private label products are often just as good as branded ones.
Saving money doesn’t mean giving up pleasure, but making more conscious financial decisions.
03
Use what you already have
Before you go shopping, take a look around. We often have more than we think: in our closets, kitchens, bank accounts.
Try this:
- Cancel unused subscriptions – apps, streaming platforms, or paid newsletters.
- Sell or give away unnecessary items – clothes, books, equipment.
- Organize a week without shopping – use what you already have in your fridge or pantry.
This kind of reorganization not only helps financially – it also tidies up your space and gives you a greater sense of control over your everyday life.
04
Take care of your head – stress also costs money
Financial problems are one of the most common sources of stress. It is difficult to focus on work, plan for the future, or relax when you are worried about money. That is why taking care of your mental well-being is just as important as controlling your expenses.
The following may help:
- Contact with loved ones – talking often helps to see the situation from a different perspective.
- Physical activity – even a short walk can reduce tension.
- Relaxation techniques – breathing, meditation, yoga
- Realistic goals – it’s not about saving your entire life savings in a month, but about getting started.
Remember that personal finance is a process. What matters is consistency and perseverance, not speed.
Saving money in times of rising living costs does not have to mean living on a shoestring. It’s all about mindfulness, good habits, and planning skills. Even small changes in your everyday approach to money can bring significant relief and a sense of stability over time. Every step toward better budget management is a step toward greater peace of mind and independence.
