Cut down on your spending and your bills to make the most of your money and your budget
No matter your financial situation, a budget is crucial to maintaining good personal finance habits. Your budget is really your financial roadmap to helping you achieve your family’s financial goals while keeping your spending habits in check.
Your budget is bound to change from time to time, and you should be reviewing your budget pretty regularly to make sure your actions are in line with your expectations.
Going over budget every once in a while is fine, as long as you can adjust to get back on track. But, if you find that your family consistently goes over budget, it’s time to think about where you can cut back to ensure you’re living within your budget.
3 Tips To Cut Back On Food Expenses
With a little bit of preparation before going grocery shopping, you can make the most of your food budget
As people start scaling back their budgets, going out to eat is most commonly the first thing they cut back on. That is definitely the best place to start, but if you feel you’re still consistently spending more than you would like on food, there are a few ways you can get more out of your food budget.
1. Make a list and stick to it
If there are two rules you should always follow at the grocery store. Those would be to 1) never go to the grocery store hungry and 2) always go shopping with a list. Going with a full belly leaves you far less likely to impulse shop and going with a list keeps you right on track for what you need.
Your grocery list at the store is your best friend. When you plan out your meals in advance and create a list with everything you need and nothing you don’t, you are far more likely to stick to your list and less likely to veer off and buy things you don’t actually need.
A list additionally ensures that you will get all the ingredients you need for all of your meals for the week. This means you’ll have no excuses to go out to eat, and you won’t need to make any extra trips to the grocery store (and tempt yourself to overspend).
2. Plan your meals around grocery store sales
There’s no question that grocery store prices are on the rise, making it much more challenging to stick to your grocery budget. With a little bit of planning, though, you can stretch your grocery budget by planning your meals for the week around grocery store sales.
If you are already used to planning out your meals for the week, this process shouldn’t be too much different from how you’ve been shopping already. If that’s not your usual grocery shopping process, it may be a little bit of an adjustment at first. But, don’t worry—it’ll get easier with time!
To start planning your weekly meals around grocery store sales, you’ll first need to figure out when your local grocery store releases its weekly ads. Grab the weekly ad the day it comes out and start looking over what the store is offering.
As you review the sales, either highlight or jot down the items your family will eat. Take note of what you already have in your kitchen and consider how you can combine sale items and what you already have at home to create some meals for the week.
Keep in mind, too, that when you see any of your pantry-staple items on sale, this will be the perfect time to bulk up.
By planning your meals based on grocery store sales, you will be able to stick to your budget and make the most of it.
3. Cook in bulk to avoid food waste
After a long day, sometimes the last thing you want to do is cook. So, really your only options are to either fix a simple, frozen meal or to just go out to eat. Especially if this is a frequent occurrence in your household, cooking in bulk might be a game changer for you.
Devote a couple of hours to meal prep all or most of your meals for the week at once. While it is a bit more time-consuming upfront, it will save you from cooking every day throughout the week. And since you will always have a meal on hand, you’ll be far less tempted to go out to eat.
3 Tips To Cut Back On Housing and Utility Costs
Even lowering your utility costs a little bit each month can open up some wiggle room in your budget
Housing and utility costs make up a large portion of most budgets. You shouldn’t spend too much of your budget on your housing costs, though. While moving or downsizing would probably make the biggest difference in your budget, it’s not always an option for people to pick up and move. Let’s talk about some ways you can start saving on your housing and utility costs.
1. Unplug unused tech
You more than likely have a lot of devices plugged into your walls. Even if you aren’t actively using these devices, they commonly still use a bit of power.
By simply unplugging your devices and small appliances when you aren’t using them, it’s estimated that you can save around 10% of your normal energy usage. It may not seem like much, but even a little bit of savings can make a big difference!
Here are some gadgets that you should consider unplugging when not in use:
- TVs
- Gaming systems
- Computers
- Phone chargers
- Small kitchen appliances
- Lamps
Consider using smart plugs to be able to cut any power from going through to whatever is plugged in. Additionally, you can set your electronics up to a powerstrip so all you have to do is turn the power strip off to cut off the energy supply multiple things at once.
2. Negotiate your bills
While many of your utilities are usage-based, you can negotiate some bills with your providers to lock in better rates. Those bills include:
- Cell phone
- Cable
- Internet
- Car insurance
- Credit card interest rates.
To negotiate, you’re going to have to talk to a customer service representative. Before you call in, though, make sure that you do a little bit of preparation for the call. See how long you’ve been a customer and try to understand your usage levels. Many companies out there would rather cut a deal to keep a loyal customer than lose your service. As far as usage goes, you may be able to bump down your level of service for something that fits your needs a bit better.
See if your provider is offering any type of special discounts or promotions, and see if their competition is offering anything better.
When you call in, be kind but firm and ask what they might be able to do to lower your bill. If the rep isn’t able to help you, it may be worth your time to try to call back and speak to other representatives. Be prepared to leave your servicer for another provider if it comes down to it, but hopefully, you can get a lower price on those services!
3. Shop around for your insurance
If you aren’t shopping around for insurance, you are more than likely paying way too much.
If you have a car, car insurance coverage is non-negotiable. Each state in the U.S.—aside from New Hampshire or Virginia—requires some type of minimum coverage. Even if you only have that baseline coverage, you should still shop around for insurance once a year to see if you can find better rates for similar coverage.
Getting a life insurance policy might be a good idea if money is tight for your family and you don’t have much set aside in savings. If anything were to happen to you or your partner and you had an active life insurance policy, the beneficiaries of the policy would get a death benefit payout that could be used as financial support.
When looking for life insurance, it’s again best that you get quotes from a couple of different companies. You should get a quote from a few different companies and compare the proposed coverage with the price. Some life insurance providers have started offering a type of term life insurance where you apply online and get a decision almost instantly. Even though medical underwriting is removed from this process, you can still get a cheap life insurance policy through this option that fits into your budget and doesn’t take up too much of your time.
2 Tips To Cut Back On Entertainment Expenses
Entertainment expenses are first on the chopping block when cutting back on expenses, but your family can still have fun without breaking the bank
When looking for places to cut back in your budget, your entertainment expenses are normally the first to go. That shouldn’t mean that you and your family go without any fun, though! You might just need to be a little savvier about what you’re spending your money on and do some research to find the things that you can do together that don’t require any money at all.
1. Cut subscriptions and memberships
Subscriptions and memberships are tricky. When you see that a streaming subscription is only about $15 per month, it doesn’t seem like it would make that much of a difference in your overall budget. But, when you start subscribing more and more, that small price can add up to a big one. When cutting your budget, make sure you consider cutting your subscriptions and memberships.
Make a list of all of your family’s subscriptions and memberships. Work with your family to determine which aren’t used as often and start cancelling those. If you can’t part with your subscription, see if you can scale back your subscription. You may switch from an ad-free subscription to a cheaper ad-supported subscription. Check to see if any of your subscriptions can be bundled together for even more savings.
Another option, too, would be to share accounts with friends and family. You might make a deal to send them a few dollars every month or pay for one while the other person pays for another. Just make sure those subscriptions allow you to share accounts across households.
2. Find free activities for your family
Your budget may be tight, but you still want your family to be able to get out and have fun. You can still find plenty of enriching experiences for your family—completely free!
The most obvious option for free family fun is to get outside. Hanging out at the park, going for a bike ride, or taking a hike are all great ways to enjoy the great outdoors. But, outside activities are not always possible, especially if you live in a place that gets cold over the winter.
Fear not, though. Here are some ideas to help you find free activities for your family year-round:
- See what your local library has to offer – Your library is not just a place to borrow books. You can often borrow things like board games, video games, and a lot more that you might not expect. You might even be able to score some free passes to your local museums or zoos.
- Check out your city’s calendar of free events – If you live near a bigger city, your city likely offers free events, like festivals, concerts, and plenty of other events. Check your city’s visitor guides or calendars and mark your calendars for any events you and your family want to attend.
- Look out for free admission days to your local museums – Museums pretty commonly set aside certain days where visitors can get in for free. Check their website for any upcoming free admission days and mark your calendars!
Even with a tighter budget, there are still plenty of opportunities to have some fun with your family for free.
Conclusion
It seems like life has just been getting more and more expensive, making it much harder to stick with your budget. Going over your budget from time to time is to be expected—after all, things happen! But if you are consistently overspending, then it’s time for your family to start cutting down on excessive spending. Hopefully, these tips will help you cut down on your spending and make your money go much further for your family.
