10 ways to reduce household expenses during inflation

Bangladesh has been experiencing high inflation for over two years. Rising prices have significantly reduced people’s real income and increased household expenses.

Alongside surging food prices, rising costs of electricity, gas, education and healthcare are placing additional pressure on households. Many middle-class families are struggling to balance their income with expenditures, often resorting to borrowing to get through the month.

In such circumstances, people look for ways to reduce their household spending. Economists suggest that with a little awareness, a few lifestyle changes and clear prioritisation, it is possible to manage expenses and even save money during inflationary periods.

Below are 10 practical strategies to help reduce spending and save money, even during times of high inflation.

Before making any purchase, consider whether the item is a necessity or merely a desire. For instance, dining out, online shopping, or buying new clothes may not always be essential. Reducing discretionary spending can significantly lighten the household budget.

Plan your income and expenses at the beginning of each month. Divide your salary into three portions — essential expenses, discretionary spending, and savings. During inflation, the 60:20:20 ratio can be a good starting point (60 per cent essentials, 20 per cent personal desires, and 20 per cent savings). You may adjust the ratio as needed based on your circumstances.

Purchasing essentials such as rice, lentils, oil, sugar, salt, and soap in larger quantities often reduces the unit cost. Buying in bulk can lower your total monthly expenditure.

Shopping without a list often leads to impulse buying. Prepare a list of necessary items before visiting the market and think twice before purchasing anything not included on it. Always keep in mind the difference between needs and wants.

Imported goods or off-season produce tend to be more expensive. Local and seasonal vegetables, fruits and fish in Bangladesh are more affordable and nutritious. Incorporating these into your diet helps maintain both nutrition and budget balance.

Avoid keeping fans, lights, televisions or Wi-Fi routers switched on unnecessarily. Using energy-efficient bulbs can reduce electricity bills by 10–15 per cent. Similarly, avoid leaving the gas stove burning when not in use.

Many middle-class families frequently dine at restaurants or fast-food outlets, which considerably increases expenses. Cutting back on eating out and bringing homemade meals to work or school can save several thousand taka each month.

Mobile payment platforms such as bKash, Nagad, credit cards, and online shopping applications provide expense summaries. Review your spending at least once a week to identify unnecessary expenditures and avoid impulsive online purchases.

Make use of public hospitals, government schools and colleges, and online education platforms. For long-distance travel, opt for trains, and for shorter commutes, use buses instead of ride-sharing services or auto-rickshaws. These choices can substantially reduce transportation and service costs.