As 2025 brings rising inflation and high living costs, saving money has become more important than ever. Financial experts are urging people to rethink their budgets and focus on essential spending. One key suggestion is to use debit cards instead of credit cards to avoid going into debt, especially since interest rates are high. This means it's more expensive to carry a balance on your credit card. Another smart move is to pay off high-interest debts quickly. Many experts recommend the debt snowball method, where you keep paying the minimum on all your debts but put extra money toward the smallest one first. This helps build momentum and makes it easier to stay motivated.

The Federal Reserve is expected to cut interest rates for the first time since December 2024, and this change could affect millions of people—especially those looking to buy a home. While the Fed doesn’t directly control mortgage rates, its decisions influence how much banks charge to borrow money. Because a rate cut is likely, lenders have already started lowering rates on 30-year fixed mortgages, which are now around 6.35%, the lowest they've been in almost a year. This could help some buyers afford a home by reducing their monthly payments. However, experts warn that the decline in rates might be small, so people shouldn’t expect huge savings right away.