Inflation in the last several months has increased the price of everything: food, electricity, propane, gasoline, livestock feed, insurance, vehicles—you name it, costs have risen across the board and saving money has become nearly impossible for a lot of people. Inflation is the silent thief that eats away at your budget, a little at a time, day by day. As interest rates and the cost of goods and services rise, folks have to make their dollars go further to provide for their family and stay financially secure.
In times of economic downturn, there are two ways you can reduce the financial strain of inflation: create an additional income source, or prioritize costs and cut back on non-essential spending to save money. I’ll leave the revenue-increasing strategies to others with more experience on that side of the equation. I am old enough, however, to have lived through several recessions and periods of high inflation that required tightening the proverbial belt and waiting for better times.
The focus of this article is on how to achieve more control over what goes out the door, financially speaking. You are probably aware of some of the steps below—and may have already put them into practice—but if you learn just one or two cost-saving measures here, then it will have been worth reading.
Pay off your credit cards.
One of the biggest drains on family budgets is high-interest debt. This includes credit card debt, personal loans, and any other form of borrowing that carries a high interest rate. Reducing these liabilities can significantly improve your financial stability and free up cash flow. According to wallethub.com, the national average annual interest rate on existing credit card accounts is 23%. Your credit score (also known as your FICO score) is one of the factors that determines the amount of interest you pay; the higher your credit score, the lower the interest rate. (Your credit score also factors into the amount you pay for homeowners and auto insurance.)
Credit cards should be viewed not as a way to get something now that you can’t pay for, but as a way to get something you want or need now, but won’t have the cash for until your paycheck, Social Security benefit, income tax refund, or anticipated windfall hits your bank account.
If possible, pay off the balance every month. If you have credit card debt that you’d like to pay off faster, look for 0% APR balance transfer offers or low-interest personal loans from your bank. A 0% balance transfer can give you time to pay back what you owe without paying interest. Your entire payment is applied to the principal. Personal loans, meanwhile, can help you consolidate high-interest debts at a lower fixed rate.
Shop insurance policies to save money.
I routinely shop my homeowners and auto insurance policies every two or three years. It’s been my experience that companies offer a low rate to get your business, then raise it substantially a year or two later. This year, my homeowners policy increased by several hundred dollars. When I called to find out why, my call wasn’t returned. That made my decision to get competitive quotes for both home and auto insurance an easy one. With a time investment of only a couple of hours, I saved over $600 by bundling both policies (with the same coverages) with a new carrier.
Buy used.
A few years ago, I bought a new car for $32,000. Not long after, my daughter bought the same make and model, but two years older with 30,000 miles on it, and paid $17,000. Her car payment was half of what I was paying. I’d still be making a car payment long after hers was paid for. If you want new and can afford it, then by all means, go for it, but bear in mind that buying a used car can be a big cost-saver. Likewise, buying tools and equipment from live and online auction houses, Habitat for Humanity (ReStore), Craigslist.com, and TractorHouse.com can save you a ton of money.
Barter.
Trading for goods and services can be a great way to cut your homestead costs. If you have a special skill to offer, an abundance of a certain vegetable, handicrafts, or almost anything, you have a commodity to offer for trade. Consider being part of, or starting, a Homestead Exchange where goods and services are traded. The exchange will enable you to meet people that are doing what you’re doing, hold similar values, and understand the struggles you face. It’s a great way to learn from those who’ve been doing this for a lot longer and share your experiences with others.
Join a community co-op.
A co-op can serve as a valuable resource, offering members the opportunity to pool resources, share knowledge, and build a network of support to help navigate the complexities of homesteading. Working as a unit, members leverage their collective abilities and resources, such as tools and machinery, in activities such as bulk purchasing of supplies, group workshops, and cooperative food production. This collaborative approach not only makes the challenging lifestyle of homesteading more manageable and cost-efficient, but also enriches the experience for all members. If there isn’t a co-op in your area, consider starting one.
Stock up on non-perishable food items.
It’s as inevitable as death and taxes: food is always going to be more expensive, so storing staples now means saving money down the road. This is especially important if your food budget is fairly constant year over year. If you catch something on sale (things your family will actually eat), pick up a few extra. Staples like beans, rice, grains, sugar, pasta, and oatmeal can be stored for long periods of time without spoiling. Just be sure to mark expiration dates and use the oldest items first.
I’ve read that grocery stores typically stock enough food to feed the local community for three days, so if a distribution emergency hits (think back to Covid), the shelves will empty pretty fast. Having a long-term food supply on hand means greater food security, saving you time and money in the process.
Learn to do things for yourself.
We live in a society where it’s routine to pay people for all kinds of services: housecleaning, auto maintenance, plumbing, electrical work, landscaping, tree trimming, appliance repairs, upholstering furniture, even food delivery. Since one of the primary goals of homesteading is to be self-reliant and create a self-sufficient lifestyle, why not expand your knowledge and expertise at doing some of these jobs yourself.
I recently called the contractor who put on my new roof to refer me to someone who could re-attach my front bumper after it fell off (a long story!). He told me he could do it and two days later, my bumper was back on, good as new. It came out during our conversation that he also did plumbing, car repairs, electrical work, tree trimming, excavation, and carpentry—he was truly a “jack of all trades.” Amazed, I asked him how he learned to do all of this stuff, and he said, “If another man can do it, I can do it.” A tad chauvinistic perhaps, but you get the point.
There are unlimited DIY tutorial videos online with advice and detailed instructions on just about any project you can imagine. Start with an easy project, like learning to grow sprouts, installing a fire pit, building a hoop house, or starting a composting system to build your confidence and go from there. Living as a homesteader requires many hands-on skills. It can be fun and rewarding to learn a new skill or create something, especially when it makes your life easier or better and you end up saving money.
Pay off your vehicles.
If you can manage it, paying off your vehicles can save you a bunch in interest. When my mother passed away, I received a small inheritance. There were lots of things I could have spent it on, but one of the smartest moves I ever made was to pay off my car. Not only was there no more car payment—I saved hundreds of dollars in interest. I realize I’m probably jinxing myself by saying this, but I paid off my 2007 Chevy in 2010, and except for tires, oil changes, and a couple of small repair bills, I’ve been driving a (relatively) “free car” to this day.
Consider installing a wood stove.
If you’ve been struggling with high heat bills in the winter, installing a wood stove is something you might consider, especially if you have a woodlot on your property or access to free firewood. I’ve never had my electric bill go down, so chances are, these high prices are not going to go away. Sure, it will require an investment to buy and install a wood stove, but heating with firewood can eliminate a good portion of that winter electric bill for many years to come. Frugality aside, the coziness and warmth of a wood fire brings people (and families) together.
Pay it forward: help your neighbor.
I’ve saved the best for last with this one. Being self-sufficient doesn’t mean that you will never need anything from anyone else. There will come times when you will need the help of your neighbors, just as there will be times when you can lend them a helping hand. Maybe there’s an older couple that needs help chopping firewood and getting it into their woodshed, or a neighbor with a fence that needs mending—offer to help and maybe enlist another neighbor to come with you. Community spirit is contagious and all it takes is one to set the example.
Homesteading is all about bringing together a community of like-minded individuals committed to shared goals and mutual support. The Prairie Homestead has some great tips on how to cultivate a homesteading community.
In the end, inflation may be beyond your control—but your response to it doesn’t have to be. By embracing some simple practices, you can stretch your resources without sacrificing your values. Whether it’s paying off debt, learning new skills, or helping a neighbor stack wood, small shifts can lead to savings and, perhaps, a deeper sense of connection. As tough times come and go, this kind of resilience becomes not just a strategy, but a lifestyle—one rooted in adaptability, generosity, and hope.