Cost of living? More like the cost of just getting by, Americans say, as a growing number are forced to choose necessities over niceties, poll reveals

The survey, based on a poll of 2,500 Americans in mid-February, highlights why affordability is such a hot topic right now.

Although inflation has fallen in recent months, higher prices remain, putting pressure on households, even for relatively high earners.

Roxie Ventura, a human resources director in Southern California, makes more than $100,000 a year, but she’s been unable to find a home in her budget.

“It just doesn’t feel like a hundred grand is enough,” Ventura told the Washington Post.

“I got a raise but then my health care went up, gas prices went up, groceries are going up and they raised my rent. So it still feels like the same situation.”

Inflation is tough for many Americans

Her experience is reflected in inflation data. According to the Bureau of Labor Statistics, spending on housing rose 3.3% between 2023 and 2024 to $26,266 per year (2).

The average American spent $6,224 on groceries in 2024, up nearly 3% from the year before and 6% from 2022.

According to KFF, formerly the Kaiser Family Foundation, annual family premiums for employer-sponsored health insurance rose 6% last year, roughly double the rate of inflation (3).

But what about the cost of enjoying life?

According to Eventbrite, the cost for one person to enjoy a night out, including tickets, ridesharing and food, runs $81 on average (4), while the Motley Fool reports that a week-long domestic vacation in 2025 cost an average $7,249, up nearly $1,400 from 2024 (5).

Those numbers add up fast when you’re already stretched thin on the basics.

The poll found that 74% of Americans say a new car — costing more than $50,000 on average today — is unaffordable across income groups.

And among renters, 65% say they won’t be able to buy a home in the foreseeable future, according to the Washington Post-ABC News-Ipsos poll. That’s true even for 57% of renters earning more than $100,000 a year.

People earning less than $100,000 were more likely to say groceries and utilities felt out of reach, including about 6 in 10 people earning below $50,000 a year.

Budgeting tips to help you navigate the rising cost of living

As prices creep up, it’s easy to feel like the only solution is to cut everything fun out of your life. But that is both unsustainable and a terrible way to live your life. Instead, focus on ensuring your savings are secure and spend on what you value the most.

Create ‘buckets’ for saving

Having an emergency fund is important, but consider adding ‘buckets’ to your savings plan for irregular but eventual expenses, such as kids’ summer camps, car repair, new electronics, and HVAC repair. Setting aside even $20 a month for such eventualities can prevent budget chaos when your car breaks down or your sink backs up.

Focus spending on what matters

A lot of budgeting advice tells you to cut lattes and cancel subscriptions, but that skips the more important question: What do you actually value?

If weekend dinners out bring you real joy, protect that and look for savings elsewhere. Maybe that means one streaming service instead of four, or sticking to generic brands at the grocery store.

The point is to make intentional choices rather than either spending reflexively or depriving yourself across the board.

Set a clear threshold for discretionary spending

Before splurging on a vacation or a big night out, run through a quick checklist: Are you current on all bills? Is your emergency fund intact (ideally three to six months of expenses)? Are you contributing at least enough to your 401(k) to get any employer match? If you can check all three boxes, you’ve earned the right to spend (carefully) on wants guilt-free. If you can’t, that’s your signal to pause and get your budget in order.

Negotiate what you can

Some costs might feel fixed, but actually aren’t. Internet, cell phone, and insurance companies might be willing to lower your rates if you ask.