Create a More Affordable Life in 8 Steps

Takeaways: How To Make Everyday Life More Affordable

• Rising costs are making everyday life less affordable, but small steps can help you feel more in control.
• Tracking spending and adjusting your budget can uncover ways to lower expenses.
• Prioritizing essentials and building a modest emergency fund can reduce financial stress.
• Credit unions and community resources can offer support when you can't cover the essentials.

If you have less money at the end of every month, you're not alone. In fact, a recent Marist poll found that around 70% of Americans say the cost of living isn't affordable where they live.

Groceries, utilities, medical bills and even used cars are all more expensive than just several years ago — and that's before you discover the leaking roof, flat tire or forgotten medical bill.

In my work as a financial educator, I've noticed people are most stressed about housing, groceries, childcare and transportation costs. There are plenty of stats to back that up: Nearly nine in 10 U.S. adults reported feeling some kind of financial stress at the start of 2026, according to a new survey by the National Endowment for Financial Education. It's much higher than in the past.

The survey also found that 77% said they'd experienced a financial setback in the past year. These included:

• Unexpected transportation expenses.
• Home repairs or maintenance.
• Falling behind on bill payments and debt obligations.
• Medical expenses due to injury or illness.
• Job loss or significant reduction in income.

A recent CNBC article points out that, in response, consumers who are worried about further inflation and the high cost of living are cutting back on nonessentials or shopping for lower-cost alternatives to their usual purchases.

But the story points out that lower earners feel they can't make ends meet, despite pulling back on spending. They're dipping into savings accounts, putting more purchases on credit cards or using Buy Now, Pay Later.

Financial stress has become one of the quietest and heaviest burdens people carry right now. I encourage people to focus on the levers they can control — things like trying to reduce recurring bills, adjusting spending or building even a small emergency fund. Having a plan, even a short-term one, often helps people feel more in control of their finances. Here are some suggestions.

1. Observe Your Spending

Before you do anything, start by observing. In one of my adult financial education classes, a student couldn't figure out why she felt so stretched every month. I encouraged her to track all of her spending for about 60 days, by writing everything down or using an app — even small things like a vending-machine snack.

After 60 days, she reached out and told me she was shocked by what she found. A lot of money went toward little things here and there, and she had several subscriptions she had completely forgotten about.

Just seeing where her money was actually going helped her free up a few hundred dollars a month, which she put into savings.

2. Reboot Your Budget

If you had a solid financial plan that has simply stopped working, start fresh. Sit down with two numbers: What comes in each month and what goes out, and break it down from there. Go through every expense — line by line — categorize it, and ask yourself whether you still need it or could spend less on it.

This takes time, sometimes a few hours, and it can feel stressful to do it. But knowing exactly where you stand helps reduce anxiety more than avoiding it.

Once you know where costs crept up, you can work on adjusting the amount you commit to your needs, wants and savings, so they match up with your new financial reality.

When my family did this exercise, we found barely used streaming subscriptions and a cable package. The charges had increased from when I first signed up. We didn't cut everything, but made deliberate choices based on what we actually watch and use. That sense of control matters.

Budgeting and paying off small bills first can help relieve financial stress, according to Financial Health Network research, so don't discount this step.

3. Prioritize Expenses

When multiple problems hit at once, it's hard to know what to tackle first. But focusing financial goals can help you manage stress, according to the Financial Health Network.

I suggest first focusing on the absolute essentials: Rent or mortgage, utilities, food and minimum payments on debts owed. Rank these essentials, either mentally or write them down. All other expenses come after these.

If finances are tight and you've been putting extra money toward paying down debt, pause that for now. Minimum payments avoid credit issues, but make sure to redirect the extra toward staying current on the basics.

5. Make Minimum Debt Payments

Before you let a bill go past due, consider the full cost of being late — fees and interest for late payments can stack up. Once you fall behind on one thing, it gets easier to fall behind on the next.

If you need to tap your savings to make on-time minimum payments, do so to protect your credit. That's exactly what it's for.

Another option is debt consolidation, where you combine all your loans into one loan and payment. This can simplify your payments and perhaps lower your interest rate.

Debt consolidation can help, but it's not a magic fix. Research has shown that many people start using their credit cards again after consolidating, and many begin building debt back if their spending habits don't change. Consolidating credit card debt and then running those cards back up leaves you in a worse position than before. That's why it's important to focus on behavior changes first.

If you're considering consolidation, partner with a nonprofit credit counseling service (like GreenPath Financial Wellness which is free for BECU members) to build a plan that addresses both the debt and the behaviors around it. Create a plan to find an approach that actually fits your life.

7. Ask for Grace

Most companies — including utility providers and credit card issuers — have grace periods and hardship options they don't advertise. Ask the company if payment amounts or dates are flexible. Many utility companies have programs to help customers manage costs during difficult stretches.

The most important thing is to contact them early; most lenders would rather work with you proactively than wait until you are delinquent.

You won't be the first person to call, and many companies are more willing to work with customers right now than people realize. The worst they can say is no.

Many people don't realize that most credit unions offer free financial education and coaching, and you don't have to be in a financial crisis to use those services. BECU offers online webinars, in-person seminars and even a fun app to help you improve your financial literacy.

8. Get Extra Help

Sometimes there's nothing left to cut. The spending is the necessary kind — housing, food, heat, electricity. Here's where to look for help.

Housing

When it comes to housing, I encourage people to compare their options rather than assume they're stuck. Sometimes running the numbers on moving, downsizing or even a temporary change can create breathing room in your budget.

For homeowners, review insurance costs and shop around for better rates.

Assistance Programs

If you don't know where to start, calling 211 is often the fastest way to connect with resources in your community. Also, check your local library for updated community resource lists that include assistance programs you won't find through a quick online search.

These resources can help with monthly costs and include local nonprofits, food banks and community organizations. For example, the website findhelp.org offers local-to-you financial assistance for gas money, internet service and prescriptions, among other assistance.

Your credit union or bank is also worth a call. Financial institutions, especially credit unions, often have resources or partnerships specifically designed to help members through tough periods. BECU offers financial relief solutions for members impacted by job loss.

You're Not Alone

The financial stress people are facing right now is real and widespread. More people are talking openly about cutting back, making trade-offs and rethinking what they thought their finances would look like by now.

That openness is a good thing. It makes it easier to ask for help without shame, to call your utility company, to walk into a credit union and say: I need to talk to someone.

Your credit union is a good place to start. Ask about financial counseling, hardship programs and the resources available in your area. A conversation costs nothing. And sometimes that's where things start to turn around.