Consumers Look to Each Other for Creative Ways to Beat the Rising Cost of Living

The TLC reality series So Freakin Cheap, which debuted last year, features people going to great lengths to stretch a dollar. A mother attempts to plan her daughter’s wedding without spending more than $750. After frying eggs in a skillet, a man uses the hot pan to press his pants rather than plug in a clothing iron. There’s dumpster diving, too. Much like the Warner Bros. Discovery cable channel’s Extreme Couponing and Extreme Cheapskates before it, the new show, while often outlandish, illustrates the cost-cutting power of imagination. As one woman on the program puts it: “Part of being frugal is also being creative.” With high rates of inflation driving up the cost of everyday goods, the number of consumers adopting this attitude is growing, as more seek innovative tricks to save money. Traffic to the Reddit community r/Frugal, for example, increased 58% in the first six months of 2022 compared to the same period in 2021, according to the company. The subreddit now has 2.4 million members—an 88% jump from last year. Buy Now, Pay Later Industry In Flux Amid Inflation and Potential Recession Top posts in recent months include a family tradition of regifting the same birthday card since 1974, a discussion on using patterned socks to mend holes in ripped jeans and a reminder that bar soap lasts longer than body wash. A conversation on r/Frugal asking others to share their “most frugal hack” started earlier this year has received more than 1,700 comments. Visits to subreddits such as r/PersonalFinance, r/PovertyFinance and r/MoneyDiariesActive have also spiked this year as consumers search for budgeting advice and compare spending habits. On Twitter, conversations about how best to counteract the rising cost of living are multiplying, according to social media analytics company Talkwalker. In June, tweets with hashtags such as #SaveMoney and #FinancialTips were up 17% compared to the same month last year. "There's no escaping the rising cost of living," Elena Melnikova, Talkwalker's CMO, said in a statement. "79% of conversations around the rising costs of essentials are focused on gas, fuel and rent, leaving less money for food and frivolities. To maintain their appeal, brands need to adjust their strategies to align with consumer concerns and sentiment." Meanwhile, figures from Google Trends show U.S. web searches for “side hustles” and “how to save money” are more popular in recent months than at any time since the pandemic hit America in March 2020. In June, TikTok began an advertising campaign titled “TikTok Taught Me,” which positions the video-sharing app as a resource for learning helpful tips on various subjects, from using a tape measure to relieving neck tension. TikTok is also full of content with strategies for cutting costs. Users have watched videos with the hashtag #Budgeting 1.8 billion times, while #SavingMoney has received 1.9 billion views. At present, nearly half of U.S. shoppers feel they can’t afford their previous lifestyle, while two-thirds are more mindful of how they are spending their money, according to a recent survey from CPG measurement insights firm NCSolutions. "Though it may be tempting to pull back on advertising, a more effective strategy is to recognize and respond to consumer 'stress-flation,'" Leslie Wood, chief research officer at NCSolutions, said in a statement. "Compelling, well-targeted advertising is a proven strategy for increasing brand equity and sales both in the short- and long-term." Last month, total U.S. retail sales remained flat at $682.8 billion compared to the prior month, according to the Commerce Department. Infographic: How Inflation Is Changing Americans’ Spending