Consumer sentiment fell again last month, according to the University of Michigan’s survey, which dates back to 1952 and has been hovering around an all-time low throughout 2026. Think about everything that’s happened in 75 years!

You and I can’t reopen the Strait of Hormuz or make groceries cheaper, but we can learn a little more about what’s dragging consumers down, and how we can improve our own household budgets. That’s the focus of basically today’s entire newsletter. Join me, won’t you? — Tony Wagner, newsletter editor

Saving money has always been automatic for Stacy Burnett.

“That New England practicality was imbued in me since I was hatched,” she said.

Burnett, who lives in southwestern Connecticut, used to max out her retirement contribution and put aside an additional 15% to 20% of her income every month. Then, earlier this year, she bought a nearly century-old house. It needed a lot of love, and when Burnett made her budget for repairs this spring, she planned to spend $120,000, which she said already felt like a crazy amount of money. But, it turned out, she was going to need more.

“Between April and when the work began in August … the prices of everything just went crazy,” she said.

Rising prices have hit a lot of people’s ability to save. The personal saving rate — that’s how much we all saved divided by our total disposable income — fell to 4.1% in August, according to the latest data from the Bureau of Economic Analysis. That’s the lowest it’s been in nearly four years.

“Inflation and the price levels are rising at significant rates, at rates that people historically haven't been used to,” said Vicki Bogan, who studies household finance as an economics professor at Duke University.

Those prices are also rising at a faster pace than wages. In the past year, average hourly earnings have increased 3%, while prices are up 3.4%. When a person dips into savings to cover current expenses, that’s known as “dissaving.” It leaves households feeling financially fragile.

“It's a psychological tax, almost, to be in a situation where you can't pay your bills until you get that paycheck,” said Bogan.

People at the very top end of the income spectrum are saving less, too, but for a different reason: the stock market has been going gangbusters for the past few years, and they see their investments shooting up.

Payments on auto loans have been coming in later and later at La Salle State Bank in Illinois.

“I’d say maybe 8-12 months ago, we started to say people pushing that 30 days, maybe 35 days,” said Chris Duncan, the bank’s chief lending officer. “And now, we’re starting to see that 35 days turn into 45 days.”

Household delinquency rates are higher than they were last year and the year before, according to the New York Federal Reserve. Meanwhile, the number of auto loans that are more than three months overdue is at a level we haven’t seen since the aftermath of the 2008 financial crisis.

Duncan said he pays close attention to these late payments. People tend to prioritize their auto loans, since they need their cars to go to work. So if they’re late on their car payments, that’s a sign of a bigger issue.

“At that point, you’re probably maxed out on your credit cards, your savings has dwindled down, you probably don’t have much of a cushion there,” Duncan said.

He said that boils down to the higher cost of living — and not just for groceries and gasoline. Car prices are way up too.

“New vehicle prices are close to $50,000,” said Jeremy Robb, chief economist at Cox Automotive. “Used vehicle prices are about $27,000. Those are both up about 41% since the pandemic.”

And that’s pushed up monthly auto payments. The average payment for a new car is now $765 a month, according to Experian.

“And on the used side, you’ve kind of seen the same thing,” Robb said. “The average used car payment now is at about $600. And before the pandemic, that used to be $300 or $350.”

We have an occasional segment on our show “Alice Gets Her Life Together,” where I tackle a different financial task each month with the help of experts and our host, Reema Khrais. Now, we’re inviting you to join in!

The Get Your Life Together challenge is on our Instagram , all month, with the hope we’ll improve our finances before the start of the holiday season — together.

This week, I’m challenging you to pick one budget category, and make a plan to cut back a little this month.

Financial educator Ellyce Fulmore gave me some great advice on this: “Let’s say you’re currently not putting any money into savings, and you’re currently spending $500 a month eating out…what you can do is every month you slowly adjust…the next month maybe you do $50 less on eating out and you’re putting $50 into savings.” 

Why not drop DoorDash cold turkey? Building better habits, like at cooking at home, doesn’t happen overnight. Changing your behavior slowly, and being kinder to yourself, will make those habits stick.

“The slower that you’re able to do that, the more likely it is that you’re gonna be able to stick to that long term,” Fulmore said 

Today we’re featuring “This Is Uncomfortable” listeners on our Instagram story to share which category they chose and how they’re planning to cut costs. Be sure to follow for another challenge next week!

“This Is Uncomfortable” doesn’t just feature expert personal finance advice. We also talk with real people in extraordinary economic circumstances, like a former homesteader who’s back in the city, Canadians boycotting the U.S., even a young woman struggling to flee Gaza. 

For these stories and more, “Uncomfortable” is up for a Signal award! But we need your help to win. Please, vote for us before next Friday!