As costs rise, here are money moves you can make right now to help manage expenses

With the cost of groceries, services, and energy on the rise, many families are feeling the financial squeeze.

“Anything that’s green is an expense you have to have,” said Clark Howard, Channel 11’s consumer advisor, referring to essential expenses like rent, utilities, and food.

Clark says you should think of a traffic light when you consider your expenses. Essential expenses, like rent and utilities, are green, indicating they are necessary.

Discretionary spending, such as buying coffee, is marked yellow, suggesting caution. Howard advises cutting back on these to manage budgets better.

Red light expenses are non-essential, such as vacations or new gadgets, which should be avoided if carrying debt.

Howard also suggests reviewing monthly bills, such as cell phone and internet plans, to identify potential savings. Many families may be paying for more than they need.

Stephen Kates, financial analyst with Bankrate, says consumers should plan for their taxes all year, especially if they owed federal taxes in 2024. Kates suggests adjustments to tax withholdings or making retirement contributions to improve finances.

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