Economic uncertainty can feel overwhelming. Whether it’s increased costs on everyday goods or potential job cuts,  the word “recession” often sparks concern. While the economy may fluctuate, your financial well-being doesn’t have to. With the right strategies and a little support, you can stay on top of your finances and get ahead.

Here are some things you should consider cutting and keeping from your budget.

What to cut.

Tightening your budget doesn’t mean giving up the things you enjoy. It’s about prioritizing the costly items you can or can’t live without. Here are some common areas to trim:

• Non-essential subscriptions: You should reevaluate all your streaming services, app memberships, or specialty boxes. These relatively low costs often go unmissed when deducted from your account monthly. Over a lifetime, these subscription expenses can accumulate to nearly $200,000.
• Dining out and delivery: To avoid spending unnecessary amounts on lavish dinners or racking up hundreds of delivery fees, you can try meal prepping, cooking at home or planning pot luck-style dinners with family and friends. The average monthly spend on dining at restaurants is nearly $200, according to an American dining study by US Foods.  
• Impulse buys or online shopping: There are several ways to avoid making non-essential purchases online. For instance, the 24-hour rule suggests waiting a full day before making purchases to help cut down on impulse shopping.
  • Bonus tip: If you have an affinity for buying the newest and cutest clothes each season, you should consider investing in a ‘capsule wardrobe’ to help curb extra costs. Trends come and go, but your finances shouldn’t suffer.
• Big-ticket upgrades or vacations: Though it’s nice to treat yourself, you should delay any major purchases like trips abroad or a new washer and dryer, especially when economic conditions are uncertain.
• Excessive utility usage: To help save money and lower monthly bills, you can make small energy-saving changes, like installing energy-efficient appliances or LED lights. Also, remember to turn off the lights before you leave — every little bit helps.
• New technology: Unless your technology is broken or doesn’t work, you should hold off on purchasing new items. Large purchases like the latest phone, computer, or headphones can be baked into your budget and savings plan rather than buying on a whim.

What to keep and prioritize.

Some expenses are essential to your financial health and long-term stability. Here are some areas to keep and prioritize:

• Emergency savings: Building emergency savings is important no matter the state of the economy. On average, 57% of U.S. adults can’t afford a $1,000 emergency expense. This is especially crucial during an economic downturn. Even though money is tight, making small deposits will help build your safety net.
• Health and insurance coverage: Prioritizing health and insurance coverage is important to prepare yourself for large out-of-pocket surprises that can put you further into debt.
• Debt repayments: Maintaining minimum payments can help safeguard your credit and avoid excessive late fees or loan defaults.
• Childcare, education, and essential transportation: For some, these areas are unavoidable and support daily stability. You should thoroughly audit your necessary expenses to justify what can be cut and what should be prioritized.  
• Existing products: Did you know Americans spend approximately $18,000 per person annually on nonessential items? Even though you want to try a new cologne, lip peptide treatment, or skincare brand, you should always finish existing products first before purchasing new and expensive items.

When it comes to planning, life changes and your budget should reflect that. That’s why revisiting your budget on a monthly basis is crucial to building better spending habits.

For more helpful tips, visit our Financial Health page at efirstbankblog.com.

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Published: June 5, 2025