"Everything goes up but your pay", is the mantra repeated by many people that I encounter. Just recently, electricity rates increased 50% where I live, due to a moratorium placed on rates several years ago. As they say, "you can pay now, or pay later". The truth is, the cost of most goods and services continue to increase, and just trying to maintain a basic standard of living becomes more difficult as time passes. The government, for it's part, plays games with statistics to make us believe things aren't quite so bad as it seems, by excluding 'food and energy' from their Consumer Price Index of prices. The last time I checked, anyone that resides above ground has to eat, and only the Amish manage to get by without using cars for transportation to work and other places. For those of us living in the real world, prices continue to climb on everyday purchases. It's not all bad however, because there are ways to save money on life's basic necessities, and most require no sacrifice other than a change in buying habits.

As mentioned, we all have to eat, and for most families food is one of the largest expenses they occur. One of the ways that you can save large amounts of money on food and other purchases is to join a Wholesale Club such as Costco, Sam's Club, B.J.s, or some other outfit. The cost is minimal, usually $35 or so a year, and you'll save many times that through the course of the year. One of the problems with Wholesale Clubs is that you have to purchase many products in bulk. This can be overcome by joining a Co-Op or starting one of your own with family members. Make a list of things that everyone uses, such as laundry detergents and other household staples, and after purchase, distribute them throughout the group. You can also save money by purchasing some food products at 'Dollar' Stores and other places that offer substantial savings. Another way to save money on food is by purchasing off brand products. While in some cases there may be a drop off in quality, I've found that many times the off brand products compare favorably with the name brands.

Another large expense for most of us is insurance. One way to save money on car insurance is simply by raising your deductible. I've been able to save up to 40% on my car insurance by raising my deductible from $200 to $1000. Of course there is the risk that you could have an accident and be responsible for the larger deductible, but if you're basically a safe driver and manage to go a few years without an accident, your savings will more than make up for any costs you occur if you are involved in an accident that's your fault. I have saved several thousand dollars over the course of a few years by raising my deductible. You can use the same approach with healthcare. If you're one of the millions of people without a health insurance plan because you're self employed, unemployed, or some other reason, you can cover your most expensive potential costs by purchasing a 'catastrophic' health insurance policy. While these type of policies won't cover much of your basic medical expenses, they are much more affordable, and will usually keep you from incurring medical expenses that could ruin you financially.

One way to save money on apparel is by purchasing out of season. Most of the larger stores are setup to display merchandise a season ahead of schedule. You'll often find Summer clothes on display in Spring, Winter apparel in Fall, etc. Department stores will usually try to unload unsold merchandise before the next season's selections arrive, and will often offer huge discounts to move this merchandise. Look for the transition in clothing at the stores, and be prepared to move fast to get the best selection. I have also been able to save 50% or more at some of the Outlet stores that are popping up all over the country. Just be aware that just because a place calls itself an 'Outlet Store', doesn't mean they're selling items at discount prices. Having a knowledge of retail prices on items will help you to determine whether or not you're getting a great deal.

Like death and paying taxes, another given is that things will cost more in the future then they do today. While it's impossible to eliminate these costs completely, there are things that you can do to lower the costs of essential items, and keep more of your hard earned cash in your pocket.