Make a good amount of money, but your expenses somehow end up being that whole amount? Ever think it’ll be impossible to save money when you make as much as it costs you to live? Have you wondered if budgeting is something that could help you? You may not need to spend as much each month as you think. Follow the steps below to lower your expenses.
1) Shop the sales, even for groceries. It’s amazing how much of the budget gets spent on food. If you ever find yourself thinking about what you want to cook/eat for the week and then looking at prices, consider reversing the order. If you start by looking at your store’s weekly sale ad and then create meals around that, you can cut a considerable amount of money and likely will eat more in season.
2) Use coupons. I know this isn’t the sexiest tip, but sometimes if you don’t care about brand, you can make a simple switch and save money. Lots of grocery stores have coupons online or through their mobile app and some even will mail you coupons. Plus you can look online for coupons too. You should also consider using ibotta. You take a picture of your grocery receipt and get cash back for certain items. Just make sure that when you use this tip you aren’t encouraged to buy things or buy more just because you have a coupon. Also make sure you’re still comparing the price after the coupon to other brands or the generic of that same item to make sure you aren’t overspending.
3) If you have cable and a home phone- consider going without. While you may think it will be truly awful to cut back on these items you’ve grown accustomed to and now consider necessities, you may find that you don’t miss them as much as you think. If you have a cell phone with decent service in your home, there isn’t much need for a home phone. For cable, you can buy an antenna to get local channels and you could always purchase netflix, hulu, or Amazon video. Amazon video and amazon music are included if you pay for amazon prime.
4) Shop around for car insurance. Typically car insurance renews every 6 months. Don’t just automatically renew, take an hour to get at least 3 additional quotes to make sure you are getting the best deal.
5) Refinance. Car loans, home mortgage, student loans. Debt can be refinanced and if your credit score is good you may be able to get a lower interest rate, which lowers your monthly payments. Just make sure that you aren’t taking more time to pay off the debt unless you absolutely need to.
6) Adjust the thermostat. When you have the heat on, lower the temperature a degree or two and when the AC is on, raise the temperature a degree or two. If possible, use a programmable thermostat to adjust the temperature so it is comfortable when you are home, but maybe a little less while you are gone. Your energy bills will thank you.
7) Avoid fees. Get rid of any bank accounts with minimum fees or credit cards with annual renewal charges. There are plenty of free bank options so there’s no need to waste money on fees. Avoid ATM fees wherever possible. You can do this by planning ahead and visiting a in network ATM before traveling or by selecting a bank with a location or ATM near your home or work.
8) Consider what you really need for your living arrangement. This could mean downsizing or even moving into a less updated place. For example, if you have a 2 bedroom apartment because you want a guest room, but in reality you only had a handful of overnight visitors last year, think about a 1 bedroom apartment. Not only will you save on rent costs, but it will also save in utility bills. If you have the size place that is right for you, consider moving into a less upgraded place (think less granite and stainless steel).
Where are you going to start on your journey to decrease your expenses? Keep your big picture in mind to know that you don’t have to sacrifice forever. Even small changes can give you momentum to hit your big picture budget goals. Comment below to tell me which of these ways to lower your costs helped you most.