As part of my family’s money management process, we conduct an end-of-year budget review in addition to our monthly reviews. While our monthly check-ins keep us on track, the year-over-year comparison helps us see patterns in our spending, savings, and overall financial goals.
This year, one expense stood out, groceries.
We expected a slight increase because my husband and I decided to prioritize date night again, something we had cut out early in our financial freedom journey. But the grocery bill? That was unexpectedly high.
The Reality of Rising Costs
Before COVID, our family of four spent $6,000 a year on groceries. In 2024 that number jumped to $10,000.
That’s an increase from $500 a month to $800, sometimes even $1000. And here’s the thing, we weren’t buying anything extravagant.
I coupon.
I cook at home.
I buy generic brands when possible.
I pack lunches for the kids.
I shop sales and bulk-by essentials like flour, rice, bread, eggs, canned beans, paper towels, and more.
Yet, despite doing everything right, the costs keep rising. So, what do you do when you’re making smart financial choices, but prices still increase?
How to Adjust When Prices Keep Climbing
When life happens and costs rise beyond your control, it’s time to make strategic shifts.
1. Re-evaluate Your Budget
• Take a step back and assess your spending categories.
• Are there areas where you can temporarily reallocate funds?
For example, two significant categories in my budget are summer camp and vacation. While summer camp is non-negotiable, I shifted some vacation funds towards groceries to keep up with rising prices. This doesn’t mean giving up on vacation, it just means making an intentional adjustment for now.
2. Identify Needs vs. Wants
Look at your budget line by line and ask yourself:
• Is this a need or a want?
• Can I pause or reduce any non-essential expenses?
For example:
Subscription boxes & auto-renewals – Whether it’s beauty, food, or clothing subscriptions, reassess if you’re fully using them or if they’re just adding clutter
Premium membership you rarely use – Gym, club, or service memberships, if you’re not fully utilizing them, consider switching to a lower-tire plan or pausing them.
Frequent rideshare expenses – If Uber/Lift has become your go-to instead of driving or public transport, explore alternative commuting options.
Essentials like food, utilities, and savings – Prioritize these.
3. Find Additional ways to Cut Grocery Costs
Even if you already shop smart, there may still be small adjustments that help:
• Compare prices across stores (sometimes bulk stores aren’t always the cheapest).
• Buy produce in season or frozen instead of fresh.
• Consider discount retailers like Aldi, Lidl, or local farmers' markets.
• Stretch meals with staples like beans, lentils, and rice.
4. Avoid the Trap of “using Future Money”
It can be tempting to swipe a credit card or dip into savings to cover rising costs. But this is a dangerous habit that can snowball into financial stress.
Instead, ask:
What can I shift in my budget to cover the cost without borrowing from my future?
How can I adapt while still staying on track with my financial goals?
Final Thoughts: control What You Can, Plan for What You Can’t
Life happens, inflation happens, and sometimes, despite our best efforts, things cost more than we’d like.
The key isn’t to panic, it’s to adapt.
Reevaluate your budget.
Make intentional trade-offs.
Cut where you can, but don’t’ sacrifice essentials.
Remember, this is temporary, you’re in control.
What’s one way you’re adjusting your budget to handle rising costs? Drop a comment below, I’d love to hear your strategies!
About Petra-Ann Brown
Petra-Ann Brown is the founder of Brown Financial Solutions, LLC, a financial coaching practice that empowers individuals to take control of their financial lives. She is also the host of Island Money 365 podcast, where she shares inspiring immigrant stories and provides invaluable financial resources to the community.
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