Americans are cutting back on essentials, not luxuries, with many reducing grocery spending and delaying health care just to make ends meet.
Financial safety nets are shrinking, as households dip into savings, take on debt, and struggle to prepare for unexpected expenses.
Experts warn these “survival strategies” can have long-term consequences, but small, realistic steps can help protect both financial and career stability.
For many Americans, the end of 2025 didn’t bring financial relief — it brought tougher choices. From trimming grocery bills to delaying doctor visits, households across the country have been cutting back wherever they can just to stay afloat – and it’s not about splurges or luxury spending anymore. The pressure is coming from the basics.
New data from Resume Now’s 2026 Cost-of-Living Crunch Report paints a sobering picture of how widespread that strain has become. Nearly all working Americans say they’ve reduced their spending, often on essential items, as wages lag behind rising costs. Savings accounts are shrinking, debt is creeping up, and for many households, there’s little room for an unexpected expense.
To help make sense of what’s driving this financial stress — and what it means for workers heading into 2026 — Resume Now Career Expert Keith Spencer breaks down the biggest trends from the survey and explains why so many Americans feel stuck in survival mode, even while working full time.
The impact of cutting costs
Resume Now’s survey found that 40% of people cut spending on groceries in 2025, while over 20% delayed doctor visits or health care appointments because of the price tag. Spencer explained that this can have long-term financial and personal risks for Americans.
“Reducing the quality of your diet or skipping preventative care can lead to more serious health issues down the road, which in turn can result in higher medical costs and greater stress,” he said.
“These pressures compound, creating a cycle where short-term survival strategies may worsen long-term financial and health outcomes. The fact that working Americans are making these kinds of tradeoffs out of necessity highlights the real strain many households are under in today’s economy.
Building up your safety net
Amid rising costs, nearly half of Americans surveyed dipped into their savings to help make ends meet last year. However, Spencer has some tips for those who may be struggling to build their safety net back.
“First, it’s important to remove the stigma around dipping into savings, because this is exactly what emergency funds are for,” he said. “Using them out of necessity is not a personal failing, but a reflection of broader economic pressures that are well beyond your control.
“For those who have fully depleted their safety nets, the focus should be on rebuilding slowly when possible. Avoid pressuring yourself to save aggressively at the expense of day-to-day well-being and, instead, look for small ways to reduce costs or save when you have extra. Also, consider exploring any community or employer-provided resources that could help ease expenses and support rebuilding your financial cushion.”
‘Survival strategies’
Another major finding from the survey was that 60% of households are prepared to cover three months of expenses or less. To help ease some of the concern around finances, Spencer offered some “survival strategies.”
“The focus should be on protecting immediate financial stability and preparing for potential disruptions,” he said. “Prioritize essentials like housing, utilities, and groceries, and look for small ways to reduce non-essential spending.
“At the same time, safeguard your career security by building key skills and keeping your resume and professional network up to date in case opportunities or emergencies arise. You can also explore additional income streams, community or employer resources, and low- or no-cost assistance programs to help cover necessities. These steps are about managing short-term survival while also positioning yourself to weather future challenges."
