INTERNATIONAL POLICY DIGEST

Maintaining a home can be a stressful endeavor. This helpful guide can help you mitigate the stress.

For homeowners across the country, unexpected repairs are an inevitable part of maintaining a home. Whether it’s a leaking faucet, a sagging roof, or a failed heater during a cold snap, these issues often arise without warning and carry unplanned costs. For families living on tight budgets, such emergencies can create significant financial stress. However, by focusing on safety, utilizing available resources, and planning strategically, homeowners can manage urgent repairs without depleting their savings. Knowing what to do and where to turn makes all the difference when timing and budget are tight.

Downsizing Homes

CBS News recently reported that a growing number of Americans are making the difficult decision to downsize or move to a smaller property to reduce expenses. In addition to rising utility bills, this trend is driven by the financial burden of maintenance costs, increasing mortgage rates, and higher property taxes.

Downsizing has also led to a shift in lifestyle choices. Families are now prioritizing affordability over space, embracing more compact living environments, and relocating to cities with a lower cost of living. Some have opted to move in with extended family members to reduce expenses. In contrast, others have chosen to live in co-living spaces, sharing rent and utilities with roommates to maintain financial stability.

Avoiding Hidden Loan Costs

Besides downsizing, many Americans are turning to loans to cover essential expenses as living costs continue to climb. However, these financial lifelines often come with hidden fees, leading borrowers to pay more in loan-related charges. This placed an additional strain on “cash-poor” households, particularly those relying on subprime credit cards and payday loans.

Now, consumers are scrutinizing loan terms, comparing fees, and exploring safer digital banking solutions. These alternative financing options include credit unions, peer-to-peer lending platforms, and personal loan lenders.

In contrast, some unregulated lenders, often referred to as a loan shark, may impose significantly higher costs and riskier terms. Understanding these differences can help borrowers make more informed choices, helping them find a lender with fairer terms.

Cutting Down Electricity Bills

According to American Home Shield in Mortgage Point, 77% of Americans reported increased energy expenses. With monthly electricity bills averaging $232, households are making difficult financial trade-offs. Thirty percent of Americans are taking on second jobs, 24% are reducing their grocery expenses, and 10% are forgoing medical prescriptions and care, all to afford the rising energy costs.

To combat these rising costs, 63% of Americans now thoroughly examine their bills to identify unusual charges, which helped 12.5% of them save an average of $433 in incorrect charges. 17% of Americans have also installed solar panels, and 75% support a government-controlled power system to regulate prices and prevent excessive rate hikes.

Adjusting Grocery Shopping Habits

According to the Bureau of Labor Statistics, Grade A eggs were among the grocery staples most affected by inflation. In December, they saw a sharp increase of 13.6%, reaching an average price of $4.14 per dozen. This surge, alongside other items affected by food inflation, has forced many households to reconsider their shopping habits and seek more affordable alternatives.

Rather than visiting multiple stores for deals, many are identifying the most cost-effective grocery stores near their homes to minimize fuel expenses. This approach helps families save more while minimizing the inconvenience of shopping at multiple stores. Many also buy in bulk and leverage store loyalty programs to further reduce expenses.

Cutting Back on Extra Expenses

In addition to reevaluating grocery spending habits, families are trimming non-essential expenses to cope with rising costs. Many have eliminated babysitter services, which now average $50 per hour. Instead, some couples take turns going out individually rather than hiring a babysitter. Still, they acknowledge that this trade-off doesn’t offer the same recharge as spending time together.

Moreover, many families turn to community-based platforms like BuyNothing to access free clothing and household items for their children. Others canceled their gym memberships and streaming subscriptions, opting for free or low-cost alternatives. Instead of spending on these services, they choose to redirect those savings into an emergency fund or invest in their children’s enrichment.

Intentional Adaptation in a Struggling Economy

The consumer landscape in the United States and other parts of the world appears grim in 2025. Despite this, many American households are proving that adaptability is key to overcoming rising costs. The best part is that families are not merely cutting back or making sacrifices but strategically reinventing how they manage their finances.

What makes this movement meaningful is the intentionality behind each decision. Instead of reacting to inflation with fear, Americans are empowering themselves through financial awareness and proactive planning. However, if you’re still uncertain about how to navigate these financial challenges, don’t hesitate to seek professional guidance. Remember, help is available—and within reach.