Top 5 Things Americans Are Buying (And Ways to Save on Them All)
Filed under: Spending
Americans are spending more on less. The cost of many goods and services gone up, from a loaf of bread to hospital visits, but income growth hasn’t kept up.
According to a survey by Chase Blueprint(R), Americans report that they’re spending more on everything from entertainment to gas this year compared to last. Even though prices are up, there are easy ways to reduce those growing costs.
Here are the top five common expenditures from the survey and ways to save on them.
5. Travel/vacations
If you managed to travel during the recession, you probably scored some of the lowest prices on hotel rooms and airfare that you’ll see for a long time. As the economy recovers, those days are gone.
How to save: Be flexible. Travel when demand is low and be flexible about days and times. If you can be flexible about location-say you simply want a beach and the exact beach doesn’t matter-even better. Be flexible on where you stay, as well, and check out home swapping or home rental sites that can offer you a comfortable place to stay at a lower cost.
4. Health and dental care
According to the Centers for Medicare and Medicaid Studies, healthcare spending is growing by about 4 percent each year. That growth is actually pretty slow compared with years past, but healthcare is expensive and higher costs means you’re spending more every year taking care of you and your family.
How to save: If you have health insurance, look into discounts that your insurance company offers for engaging in healthy behaviors. Insurance companies often offer discounts on gyms, nutritional services, skin care, workout gear, eye wear and smoking cessation programs.
3. Utilities
Utility costs are rising, as well, despite cheaper natural gas costs for utility companies. Costs tend to increase a lot more when your utility provider is upgrading its systems.
How to save: You’ve probably heard a lot of advice about saving on energy costs by installing a programmable thermostat. Honestly, it works, even if your schedule is inconsistent. You can even control your thermostat with an app, which is especially important if you’re not able to stick to a set schedule. Believe it or not, this pays for itself in no time. You can save 30 percent on your air-conditioning or heating costs by spending $150 on one of these products.
2. Gas
Almost a third of the Chase Blueprint study respondents say they’re spending more on gas this year than they were last year. While gas prices fluctuate, they’ve been trending up over the past two years. In 2011, average gas prices were less than $2.80-now they’re almost a dollar more.
How to save: Try a gas mileage app for your smart phone. Apps are available that can tell you how much gas (and time) you can save by taking one route over another or by driving 55 miles per hour instead of 65. Some even give you real-time monitoring that measures your acceleration and translates that into fuel use, so you can control your gas guzzling on the fly.
1. Food/groceries
The biggest place where people are spending more is in the grocery store. Thirty-nine percent of those surveyed say they’re spending more on food and groceries. That trend isn’t expected to change. The United States Department of Agriculture predicts that the prices of grocery store staples like beef, pork, chicken, dairy products, fruit and vegetables will increase anywhere from 2.5 to 4.0 percent in 2014.
How to save: There are many ways to save on groceries, but here’s one idea that more consumers are trying: Band together with your neighbors or friends to buy things you all enjoy at wholesale prices directly from suppliers. It takes some research to set this up, but there are websites and blogs to guide your way. One idea is to join a local Community Supported Agriculture (CSA) box program, which offers fresh produce, eggs and meat sourced directly from farmers.
By making a few smart spending moves with the biggest line items in your budget, you’ll be able to redirect your savings toward more rewarding purchases.
Chase Blueprint is a free set of features on Chase credit cards that helps customers avoid interest and pay down balances faster.
Ilyce Glink is an award-winning author, columnist, radio talk show host, and blogger who specializes in real estate and personal finance. Find her online at .
Sources
1. Chase Blueprint Pulse of the Consumer survey from June 2013 https://www.chase.com/online/chase_blueprint/document/How-Consumers_Feel.pdf
2. Centers for Medicare and Medicaid Studies: http://www.cms.gov/Research-Statistics-Data-and-Systems/Statistics-Trends-and-Reports/NationalHealthExpendData/index.html?redirect=/nationalhealthexpenddata/
3. Gas Buddy historical price charts: http://gasbuddy.com/gb_retail_price_chart.aspx
4. USDA Economic Research Service: http://www.ers.usda.gov/data-products/food-price-outlook.aspx#.UmlXx_lwqup
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