Living in California, you’ve probably noticed how expenses keep rising every month. Rent is going up, store prices are skyrocketing, and electricity bills are no longer pleasant to see. Budget planning has become a real challenge. One unexpected expense — like fixing your car or visiting a doctor — can throw everything out of balance. But even in these emergencies, it’s possible to stay financially resilient. More and more Californian families are adopting simple habits that help them feel more confident and calm amid rising prices. And anyone can do the same.

Why Is the Cost of Living in California Rising?

California remains one of the most expensive states in the country. In 2025, the average rent in cities reached about $5,900 per month. For many people, this is an unaffordable amount. According to the California Affordable Housing Needs Report 2024, almost 50% of low-income renters spend more than half of their income on housing. As for buying their own home, most people don’t even dream about it anymore — mortgage rates that were around 3% in 2020 have now risen above 6.5%.

Electricity and utility bills have also increased. This is due to massive spending on wildfire prevention, power grid upgrades, and new environmental standards. Prices for groceries, gasoline, and other essentials also remain high. Supply chain disruptions, climate change, and global inflation are driving this. All of this makes life in the state even more expensive and unpredictable.

In addition, more and more Californians have unstable incomes. About 18% work as freelancers, drivers, or couriers, or run small businesses, meaning they have no paid vacation, insurance, or guaranteed employment. Therefore, when unexpected expenses occur, many simply have no savings to get through a difficult period.

There is a Solution!

When it feels like the high cost of living in California traps you in an endless cycle of living paycheck to paycheck, it’s easy to lose hope. But if you build a few simple habits, you can live with more peace of mind and even start saving money.

To avoid spending all your funds on unnecessary purchases or entertainment, experts recommend starting with the simplest step: controlling your personal expenses and income. Budgeting is a basic skill for residents of California.

You can track your finances using planning tools such as Mint and You Need A Budget (YNAB), a simple Excel spreadsheet, or even handwritten notes in a regular notebook. Keeping track of your spending and income helps you understand where your money goes, which expenses you can avoid, and how much of each paycheck you can set aside for a big purchase.

The next habit for achieving financial resilience is saving. And it’s not about depriving yourself of what you want. Saving is, above all, about having a smart plan. You should start by planning your weekly menu and making a shopping list based on it. The effect? You’ll notice that the number of impulsive purchases drops to a minimum.

In addition, stores like Aldi, Grocery Outlet, and 99 Ranch Market offer products at lower prices, while digital coupons and apps like Ibotta or Fetch help you get extra discounts. Buying long-lasting goods in bulk, such as rice, beans, and pasta, also brings noticeable savings. Cook in portions, freeze leftovers, and avoid food waste — it’s a simple rule, but it really works.

You can also save significantly on transportation by using carpooling, public transit, or working from home one or two days a week (if possible). This helps reduce fuel and vehicle maintenance expenses. 

For electricity and gas payments, you can receive a discount of 18% to 35% through the CARE and FERA programs if your family has a low income. You can apply directly through your provider — PG&E, Southern California Edison, or San Diego Gas & Electric. For those who have accumulated utility debt, there is the PG&E Arrearage Management Plan (AMP): after 12 on-time payments, the company may forgive up to $8,000 of debt. Simple steps like sealing windows or switching to LED lighting can also help lower your bills.

Do you remember the jokes about the older generation and their habit of not throwing things away but keeping them “just in case”? Now we see on social media that more and more people are returning to the same principle — only now it’s called by the trendy term “mindful consumption.”

Not throwing things away but reusing them has become one of the most powerful global movements. People repair old appliances, sell unnecessary items online, exchange in community groups, and even use food scraps to make organic fertilizers or feed animals.

And this is not only about caring for the environment but also about sound financial logic. Such habits help spend less, use resources more wisely, and build a sustainable attitude toward money — in other words, they do exactly what lies at the core of financial stability.

It’s surprising, but many California families give up entertainment and leisure, even though these are sources of positive emotions and motivation. The reason is that the modern world has taught us to buy these emotions. But the most important feelings can be experienced without spending money. A walk with your child in the park, a visit to the library, or a trip to a museum can be arranged for free or at a much lower cost than we’re used to. Just ask yourself: “How can I get the same emotions without spending money?” — and you’ll find dozens of ways to do it.

If there’s still not enough money, there’s no need to be embarrassed to ask for help. The CalFresh (SNAP) program provides monthly food assistance, and EBT SUN Bucks helps families with children during the summer. For health insurance, Covered California and Medi-Cal are available, while the CalEITC and YCTC programs offer tax credits of up to $4,798 to low-income families. Furthermore, Los Angeles (LA), San Diego (SD), and other counties also have emergency funds to help pay rent and utilities.

To make sure that a sudden layoff or other unforeseen event doesn’t throw you off balance, start building an emergency fund equal to several of your monthly salaries. To do this, try to set aside a portion of your paycheck each month — for example, 15%. Having such a safety cushion will allow you to cover unexpected expenses without debt or stress.

Another important habit every family should have is the ability to communicate openly about money — to discuss how to manage it, talk about common goals, dreams, and even fears. Create a family financial council and hold monthly meetings. This will help you avoid sudden conflicts over money and move together toward shared goals.

California will likely remain one of the most expensive states. But the right financial habits can help you handle it. Control your expenses, build savings, and take advantage of government programs. And if an urgent situation arises, a digital lender in California can serve as temporary support, helping you quickly cover rent or groceries without unnecessary bureaucracy.

Financial planning is a skill that develops over time. And if you follow these principles consistently, you can not only withstand rising prices but also feel confident and calm even during challenging times.