How to Adapt When Everything Costs More
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Like everyone, I’m having to adapt to increased living costs. These changes most challenge retirees on fixed incomes.
This blog relies heavily on Google search traffic, and AI has taken about half of that, so my income has taken a hit. It seemed to happen quite suddenly, and it surprised me.
We should always be prepared for such things, but it’s easy to become complacent. And sometimes there just isn’t much you can do.
It’s not like blogging is free. I pay $150 a month to keep this blog online. Then there are lots of extra costs, like image software, images, graphics, plug-ins to keep things running smoothly. These are typically yearly subscriptions.
It wasn’t like this when I started Cozy Little House in 2009. It was a new, uncharted frontier. Now that things are more structured, you need an accountant to handle your complex taxes. And there are copyright laws and new technology to continually deal with.
Sometimes I feel like things are going so fast I can barely keep up, like a treadmill that keeps speeding up. I have to gloss over some of the Google rules and sudden changes and keep moving, because it’s too complicated for me to understand.
My First Plans & Strategy to Save Money:
The first thing I did was look over what I didn’t absolutely have to pay for. Maria, who came to clean twice a month, was the first thing to go.
I was doing well enough that I paid Maria to come in to help out. Then income slowed more than it had in quite a few years. My home won’t be as clean because my physical issues mean things take me longer, but I can deal with that.
I’ve learned to look past some of the things that bothered me when I was younger and more agile. As the years have passed, I’ve come to realize what age does to your speed and energy level.
I don’t have credit card debt except for my dental work expenses. I’m paying $200 a month for 18 months to pay for my recent bridge dental work. Once I pay for that, I will have to start all over again with the same procedure on the other side.
I went for about 8 years without going to the dentist because of the cost, and now I’m paying dearly for it. Kendra paid $10,000 in 2024 on dental expenses for herself, and then there’s her two kids.
I’ve stopped shopping for anything other than food and necessities. For a while, there will be no trips to the thrift store or antique mall unless something changes. You really have to watch those types of costs, because they can get out of hand fast.
Sources of Income:
I receive income from Social Security, but it doesn’t cover the monthly bills, let alone food, medication, etc. So I rely on blogging income to cover the rest.
My healthcare costs consists of Medicare and insurance supplements, which comes to about $500 per month. That does not include medication. I think most of us are in the same boat with the price of medical care in the U.S., and probably in many other countries.
All this to say that I had to stop and take a good at my life and the costs that go with living.
Planning a Budget:
Before you can plan for the future, you need to know where you stand today. Many people are surprised to learn where their money is actually going.
- List your income: Gather all your sources of monthly income. This includes your take-home pay, freelance work, passive income, or any other money you consistently receive.
- Track your expenses: For the past 30 days, track every dollar you spent. Use your bank and credit card statements to review your spending on everything from rent and utilities to groceries and morning coffee.
The Zero-Based Budget: The goal is to give every dollar a job. Your income minus all your expenses should equal zero.
The 50/30/20 Rule:
The 50/30/20 Rule: This is a simple method where you allocate your after-tax income like this:
- 50% to needs (housing, groceries, transportation)
- 30% to wants (hobbies, dining out, shopping)
- 20% to savings and debt repayment
Thank goodness I rent my home from my daughter. I wouldn’t be able to keep up with the rental increases that came every year when I rented an apartment. Still, rent comes to about half of my Social Security. So I can’t work off that method.
Entertainment Expenses:
I looked at entertainment. I’ve been getting HBO for the last quarter. That’s now been cancelled, though it was a tax write-off (because I write about TV shows).
Still, I had to pay for it each month, and it was quick to get checked off the list.
I cut the cord on cable TV some years ago. Getting a lot of channels and paying the high prices was not something I considered at all necessary.
I have a cell phone, but I no longer have a home phone.
It’s not like I go out very often, so I don’t have to buy gasoline very often. I could go a month without refueling.
It’s good that I don’t care to travel, because I couldn’t afford it anyway. I wonder how many people can afford to travel these days?
Utility Expenses:
Everyone who lives in a modern home has to pay for monthly utilities. I pay for electricity, gas, and water. When anyone comes to visit, I find myself following them around, turning off the light switch.
It’s an ingrained habit for me to turn off a light when I leave a room. I don’t rely on overhead lighting, as I prefer the softness of lamplight.
The other day, I found a spot in the laundry room to put a small table lamp, so I don’t have to keep the overhead light on while doing laundry.
Grocery Expenses:
I don’t spend a lot on groceries. Eggs keep going up in price, but I need them for protein, as I don’t eat much meat. I prefer tuna and fish to chicken, beef, and pork. But occasionally I’ll get the urge to cook a meatloaf, etc.
If I want to make a pan of cornbread or bake a cake, I need eggs for that, too.
I like canned beans, especially pinto and black beans. Last night I had black beans and cornbread mixed in. Ivy loves cornbread, so I gave her a little in a bowl.
Unfortunately, I can’t get my freezer door open all the way because of the wall/baseboard problem we ran into. So I limit what goes into the freezer.
Sometimes I wish I’d kept that freezer I had, but I don’t know where I’d have put it.
I also buy mostly generic products now rather than name brands. I’ve found that the generic Walmart products are just as tasty.
Pet Needs:
Cat food isn’t cheap, and I’m feeding the outdoor kitties, too. But thankfully, all four residents on my side of the street feed them, too.
I order cat food and litter from Amazon, Walmart, or Chewy. If I’m ordering at least $49, I like to go with Chewy’s. They contribute to shelters and deliver quickly. According to their website, since 2012, they’ve donated more than $183M in products to shelters and rescues.
Chewy also helps get pets adopted through its site by showing adoptable animals in your region. I will never go through a pet breeder, as there are already plenty of animals that need a home.
In my view, there’s never a reason to go through a pet breeder, though I know not everyone feels that way.
Prices & Inflation:
A budget has to be in place to help stretch your dollars. And you have to deal with rising prices the best way you can.
In August, the Consumer Price Index — a key measure of inflation across the U.S. economy — rose by 0.2%. That brought the annual inflation rate to 2.9%, compared with 2.7% in July.
All food costs are about 17.8% higher than they were in January 2022. That means a grocery bill that cost $100 back then would cost around $117.78 in August 2025. Food prices rose faster than overall inflation.
According to the USDA, overall food prices are anticipated to rise faster than the historical average rate of growth. In 2025, prices for all food were predicted to increase 3.0 percent, with a prediction interval of 2.6 to 3.4 percent.
There’s no getting around that, because you have to eat. So we have to change our expectations and spending continually.
Growing up, we relied heavily on food from the garden, which was also canned for the winter months. Plus, we had chickens for eggs. There’s a lot to be said for that way of life!
What is Discretionary Spending?
Discretionary spending is money spent on non-essential goods and services that are not required for survival or by law. For households, it’s the money left over after paying for necessities like rent, food, and utilities.
I think these days there isn’t much left over for most families, unless they happen to be in the top 1% of high earners or thereabouts.
Aside from all the scary things happening in this country, there is always the fear of not having enough. I think that is ingrained in most of us.
What changes are you utilizing to keep up with inflation and home expenditures?
I love reading your post because I am in the same boat…. Thank you for updates on the cost of living but I am blessed to be able to pay my bills…
The prices on literally everything are ridiculous right now. Our young adult son now lives with us again because he can’t afford his own place. And yes, he has a job. A one bedroom apt around here costs at least $1400/mo. Not including utilities. And then of course there’s groceries and gas and car insurance and living expenses. He’s tired of having a roommate (had bad experiences) and he doesn’t have a long-term GF, so noone to share expenses with right now.
We are lucky to have a decently-priced huge grocery store a couple of miles away. They also have a discounted meat freezer with meat that’s expiring that day, so I’ve been pretty lucky in finding discounted chicken and ground turkey. We have an upright freezer in the basement, so I stock the extra meat in there.
We subscribe to several streaming channels. We received an email last month that Apple TV was going up to $12.99/mo so we cancelled it. We rarely watched anything on Apple anyway.
Lots of good information and timely reminders in your post. I feel lucky that I was raised by parents who lived through the Great Depression and taught me how to live frugally. Young people today poll high in anxiety about their futures without that kind of grounding in thrift. Years ago I read a book about the feminization of poverty. In our work careers our gender typically makes cents on the dollar compared to men. We interrupt careers to raise children or have no savings to fall back on. But being resourceful, creative and smart, we still thrive. Old age for me has been a challenge but also a time to feel contented and very grateful.
Women don’t have the benefits men do, certainly.
I have changed my shopping habits also. I use Aldi as my primary grocery store now. The prices can’t be beat. Eggs were $2-something today for a dozen. Did not need any, so can’t check my receipt. That’s a cheap source of protein. A pound of ground turkey (frozen chub) was $2.19. Add seasonings, and it makes a good taco or meat for spaghetti sauce. I have liked all of their house brands, except the frozen corn 🙂
It sounds like you are doing all you can to cut back. I did not realize you had to pay for a blog. Is that also true of Instagram and YouTube? I am so sorry. I have heard other bloggers say the same things. I would miss your blog terribly if it disappeared.
I don’t pay anything for YouTube and Instagram, but I only watch free YouTube videos and scan Instagram.
Ah yes, the golden years! You need a pot of gold to survive. My husband and I have learned being thrifty from our parents thankfully. We have always pinched our pennies but were able to treat ourselves sometimes also. I have always hung out my clothes to dry, shopped sales and enjoyed going to the flea markets and thrift stores. Especially in the colder months when it gets dark early I like to prepare our larger meal of the day. When it gets dark early I am done! I don’t do much shopping and luckily us older people don’t need new clothes every season like kids need with growing out of them. I do not like to use my cellphone walking around in the stores and those digital coupons make me crazy. I don’t do them. As wealthy as this country is it is a shame hard working people are in need and hungry. I’ve taught our daughter to live frugally and we are teaching our grandchildren. I am donating all my Dad’s clothes and I hope to donate everything in his home, including all the furniture. Have a good weekend all!
Sounds like you’re very wise and frugal too. I rarely buy any clothing, and it’s usually something on sale at Walmart. All my clothing (for every season) fits into one small closet!
Aldi’s is where I do most of my food shopping. Their prices are much lower than the grocery stores in this area. I cook my dog’s food instead of buying the canned or prepackaged food. Thankfully we don’t have a water or sewer bill because we have a well. Yes the taxes and homeowners insurance is raised every year. Very rarely do we eat out. There is one buffet we go to it is called Shadymaple, they offer a free meal on your birthday and on Veterans day they offer a 50 percent discount for current military and veterans. My husband is a veteran so we will take advantage of that. 95 percent of our clothes are from the thrift store, excluding socks and underwear. If I make a pot of chicken noodle soup we get a few meals from it and the rest is frozen. We all have to learn to adapt. Take care Brenda.
I freeze anything left over that I think will be eaten. Freeze bread, buns, etc., and thaw them as needed. I couldn’t handle Aldi’s, but Walmart is pretty cheap, and with my plan, there are no tips to pay.
It sounds like you are doing everything you can do, to keep surviving. We live in one of the wealthiest countries in the world, yet so many people are struggling to survive. Prices just keep going up, and our incomes aren’t keeping up. Something’s gotta give! At least the library is still free. If tv/cable becomes too expensive to keep for entertainment, we can at least borrow a book from the library to have something to do to enjoy. Brenda, I’m sorry your website income has gone down. Is there anything, as your readers, that we can do to help with that?
No, I don’t think so, but thanks for asking. AI comes up in search first now, and Reddit or Quora, and then websites like mine are after that. People don’t scroll Search very long once they find an answer. So that’s what happened. A sign of the times, and not much can be done about it.
A few yrs back — maybe 10 even, I was keeping track of food expenses and started shopping at Walmart or Target for groceries. My bill went down $300 with those stores vs major grocery chains. I know not everyone wants to shop at Walmart or Target for political reasons but in today’s market it is the only places that some can afford. Great ideas here Brenda. Thanks so much 🎃
I know what you mean, but I don’t really have a choice but to order through Walmart InHome, which means they deliver to my kitchen.
Thought you said in a previous post you were boycotting Walmart due to dissatisfaction. Why all of a sudden there’s no more eating out every week and limited shopping on Amazon? Wow
Prices are horrible especially for us retirees. I sure don’t know who named them the golden years. BTW I love the new graphics you used on today’s post!
I purchase graphics, but I always choose the best I can afford. Then, of course, comes the cost of storing them on my computer!
Grocery prices have become ridiculous. More and more we eat very little beef and if we have meat it’s usually chicken or fish. I always have a couple of veggie days during the week.
Luckily I worked very hard for a number of years and got our mortgage paid off early but the homeowners and the property taxes have gone up. I think it’s a constant battle for us all. Plus Medicare is going up again. Now they’re talking about pre-authorizations and referrals. I think they just want us to kick the bucket!
I got rid of cable long ago and I only stream. I also have no home phone. my cell is my home phone. We only eat out maybe 2 times a month. We prefer going out for lunch. A tank of gas can last me at least a month. My husband retires at age 67 in less than 200 days. I’m hoping that the economy doesn’t get any worse.
I suppose I’d say us boomers have done this all before so we can make it but I also think we shouldn’t have to.
I used to think that if only I’d bought and paid off a house before retirement (which didn’t happen), then I’d be set. But the reality these days, as my physician said when I saw her recently, is that the taxes and insurance are so high now that it has changed that feeling.
I got rid of all my subscriptions but Netflix and so far so good. Cut out eating out and have surprised myself with how creative I can be in the kitchen. Cut down on the driving and am enjoying hanging out at home with my cat. And don’t really miss any of what I gave up.
I’m going through my pantry and finding all kinds of food I forgot was in that dark place!