Most of us know that money is tighter now than it was a few years ago. It’s stretching even the most abundant budget to the limit. There are only two ways to help your budget: earn more or spend less. If you can do both, even better! Most of us are limited in how much we can earn and can’t just increase our earning at will.
So, that leaves making changes in our spending habits. You might actually have a little more wiggle room in this area than you originally thought. Hopefully this article will give you some ideas of areas you may be able to cut to give yourself more room in your monthly budget without going without anything you really enjoy.
Budgeting Tips:
- A Budget: This is step one. Putting all your income and expenses down on paper, or a spreadsheet on your computer, makes it easy to really get a birds eye view of your financial situation. The first time I did this, a long time ago, it was a little scary. There was a lot more going out than coming in each month! Once you’ve got it all laid out you can see where there may be holes in your budget that you can fill. For example, you may decide to skip that $8 cup of coffee every morning when you see how much more money you’ll have at the end of the month without it.
- Rainy Days: As soon as you can start putting some money away for emergencies. A car or home repair, and unexpected trip to the doctor repairing a broken pair of glasses, whatever it is the situation will be a lot less stressful if you know you’ve got money saved to deal with it. Even $50 a month can add pretty quickly.
- Cut Unnecessary Subscriptions: If you’re not using it, cancel it. That magazine that you haven’t read one issue from since 2010, cancel it. How about the music service that you’ve never used at all? Cancel it. T.V. streaming services that you only watch once a year… you know. Actually, I cycle through my streaming services. It seems like there are dry periods where there aren’t any shows on a specific streamer that I’m interested in. I’ll cancel and restart it down the road when, and if, they have shows I’m interested in.
- Meal Planning: Plan your weekly menus out for a week or more. And, if possible, buy your food in bulk. Even if you don’t have a big family, buying at those big warehouse style places can be a real cost saver. You can freeze, or store in a closet or pantry, the items and use them when you get to them. As long as you know you’ll use them before they go bad, and if you can find the storage space, there is no downside to buying often used items in bulk.
- Limit Dining Out: This one is tough for me, I love to eat out. But remember above where I said you can save money on that morning coffee and use that money for other things? Well, eating out might be that other thing if you enjoy it. Budgeting doesn’t have to be about going without, it’s more about defining your priorities. I’m lucky, I don’t even like the taste of that expensive chain coffee so that is an easy decision for me. But, even if I did, I’d enjoy a good meal out once a month more than the morning coffee.
- Review Insurance Policies: It’s boring, I know, but by looking over your insurance policy and possibly even changing carriers, you can save a lot of money. Maybe even more than 15% 😉
- Energy Efficiency: Make your home more energy-efficient by sealing drafts, using energy-saving light bulbs, and turning off appliances when not in use. No point in giving more of your hard earned money to your local utility company than is absolutely necessary!
- DIY Home Maintenance: Did you know that with virtually every home project you have the labor is the highest cost? It’s true. A new toilet can be as cheap as $100 depending on where you live and where you buy it. But hiring a plumber to install it and you’ll likely pay a minimum of $500. And do you know how long it takes to install a toilet (I’ve done several so I have a pretty good idea) about 30 minutes. Unless you want to become a plumber and earn $1,000 / an hour, it’s a good idea to do these simple household tasks yourself. And, by the way, no disrespect to the plumbers. We pay them for their experience and expertise, but if you want to save some money you can learn to do it yourself!
Shopping Tips:
- Use Coupons and Cashback Offers: Take advantage of digital coupons, loyalty programs, and cashback offers when shopping for groceries and other household items. Numerous apps and websites can help you find deals and save money.
- Buy Generic Brands: In many cases, generic or store-brand products are just as good as name brands but cost less. Try them out and see if you notice a difference.
- Shop in Bulk: Purchasing non-perishable items in bulk can lead to significant savings over time. Just be sure to store them properly to prevent spoilage.
- Don’t Spend Impulsively: This is really true when buying expensive items but even those cheaper items can add up. Try to be as mindful in your spending are you are in the rest of your life. Do you really need a certain item, that is the question to ask before you pull out your wallet..
- Compare Prices: Before you buy something, especially a higher ticket item, it makes sense to figure out the best option for you and the best place to buy it. Reviews are a good place to start.
- Second-Hand Shopping: Consider buying gently used items, such as clothing, furniture, and electronics, from thrift stores or online marketplaces. These items are often significantly cheaper than brand-new ones.
- Cash, Not Credit: I’m not an expert, but this is what I’ve been told, that if have a credit card but you don’t use it, it can have a negative impact on your credit score. So, I like to use my card for things I’d be buying anyway: gas, groceries, etc. This doesn’t hurt my budget because these things are already included, but, if the info I’ve been given is accurate, it will keep my credit card company happy too!
- Set a Spending Limit: Establish a monthly spending limit for discretionary expenses like entertainment and shopping. Stick to it to prevent overspending.
- Negotiate Prices: Don’t be afraid to negotiate prices, especially for big-ticket items. Many sellers are open to bargaining, and you could save a substantial amount.
- Plan for Sales and Discounts: There are certain times of the year when some types of products are discounted. They do this yearly. White sales (towels, sheets, etc.), for example happen in January. If you can “schedule” your purchases during this time, you can save some money. Just look online for when certain products are typically on sale during which months.
Getting a 10,000 foot view of your overall budgetary items makes it easy to spot holes. You may decide that you’d rather save money on that expensive morning coffer, brew some at home instead, and use the extra for a nice night out.
It’s up to you! Hopefully these tips can help.