If money is tight right now, and there’s probably extra Christmas spending on the horizon, you might be wondering just how you’re going to make until the end of the month.
Now might be a really good time to look at five common budget saboteurs. We often complain about gas prices and groceries, but fail to see that some of our biggest expenditures are needless extras, and non-essentials. Take a look at your last bank or credit card statement and you’ll see what I mean.
Extracurriculars
While millions of Americans are receiving a “free” education this year their parents are spending a lot of money behind the scenes. Extracurricular expenses really add up. The first thing that comes to mind is sports, because that entails a lot of equipment, mileage, food and drinks. Here are a few simple ways to cut costs:
- Buy comfortable sports insoles for cushion and support, rather than running out for an expensive pair of replacement shoes.
- Shop second-hand stores for shoes, equipment, teamwear and accessories like laces and insoles.
- Join local, community-based sports teams to cut down on travel.
- Check to see if volunteering can reduce your child’s costs.
- Remember that money doesn’t always translate into enjoyment; make sure this is something your child REALLY wants to do!
Here are some cost-cutting measures for other common expenses:
- Don’t opt in to every school trip.
- Look for used instruments or rentals.
- Borrow a suit or dress from family/friends.
- Ask a talented friend or family member to take photographs.
- Set a strict budget for back-to-school clothing.
- Use social media to find school supply giveaways in your community.
Eating Out
This is one of my biggest temptations, but all I have to do is remind myself that it can add up to hundreds of dollars each month, and I know that’s just not something we can justify as a family.
Here’s how you avoid the urge to eat out:
- Make a weekly meal plan and buy only the groceries you need for it.
- Figure out which days you’re most likely to eat out (Sunday, after church?) and make sure you have a meal waiting at home in the crock pot.
- Order groceries online to avoid the impulse buys inside the store.
- Eat leftovers.
- Set aside a little bit of extra cash each week and then use it to go out to eat once a month, and then it becomes a guiltless treat!
- Pack a lunch (or snack) for work. You’ll not only save money, you’ll probably also lose a little weight.
Cable and Cell Phones
We’ve never had cable. I was truly shocked to learn that the average American household spends over $200 a month on it!
Whoa.
The cost of cable was already high, but now it’s risen over 15% the past four years. Is there any TV series or news program that’s worth that kind of money if you’re living paycheck to paycheck or have very little left over at the end of the month?
You could apply that $200 to outstanding debt each month. Spend it on your health. Your children. A local charity. An elderly person in need. Or invest it. Anything but throwing it at the boob tube!
Ditch cable and try something different.
- Rent movies and TV series for free at your local library.
- Borrow stuff from friends and family to watch.
- Stream through your existing Amazon or Walmart+ membership.
- Watch stuff for free on YouTube and Rumble.
- Pick up an antenna at Walmart or switch to SlingTV for watching sports.
- Pick a night (or two) each week for TV and/or movies. And that’s all.
- Play more board games. Read books. Take a walk. Work puzzles.
My monthly cell phone bill is $29.89 per month. My teenage daughter’s? Just $14.00. We switched to Twigby several years ago and never looked back.
Think of your phone as a tool. It’s mainly for communicating (talk + text), and it has a few extra bells and whistles. Do you really want to keep paying over $100 just for that?
Contact me to find out how to get a $15 credit from Twigby.
Impulse Shopping
This can happen anywhere and it can kill your budget if you don’t get a handle on it. Here’s how to stop buying things you didn’t even need (or didn’t know you wanted) to begin with.
- Delete all shopping apps from your phone (unless they are absolutely necessary). Most stores have a website that you can use instead, and you won’t get constant notifications.
- Delete games from your phone with in-app purchasing. You’ll also end up wasting less time.
- Unsubscribe from retail email newsletters. Go find out what’s on sale ONLY when you actually need something and were going to shop anyway.
- Turn off the “all notifications” option for Facebook groups that regularly share sales and deals.
- Have a gracious way of saying “no” ever handy for multi-level-marketing and home-based business invitations. Don’t buy under pressure or for fear of hurting someone’s feelings.
- Use online ordering for groceries and pick-up curbside; there’s less temptation to impulse buy stuff that you see inside the store.
- Don’t take your children shopping, if possible. I’m always to tempted to get mine a little treat or toy!
Cut the Coffee and Coke
Here’s another shocker. One third of Americans spend more on coffee than they do on investing for the future! The average American spends $3.00 a day on specialty coffee alone.
As for sugary drinks (tea, soda, sports beverages), most Americans drink at least one a day. Unfortunately, the majority of them are already low income. Remember when a 12-pack of Coke was about three dollars? Now it’s close to eight!
Eliminating costs like this can add up to over $1,000 or more per year in savings.
Try these alternatives:
- Brew coffee at home. Invest in a good quality thermal to-go cup.
- Prepare tea at home. Black, green, herbal, chai – it’s inexpensive, delicious and even has some health benefits!
- Switch to fruit-infused sparkling water (no sugar, no sweeteners); it costs 50% less than soda.
- Gradually decrease the sugar you drink in tea until you can enjoy it unsweetened.
- Drink milk (yes, good old milk) or coconut water instead of expensive sports and energy drinks.
Wrapping it Up
As you are taking the scissors to your budget, it helps to know there are online financial options if you get in a bind.
And PLEASE don’t miss out on one of the biggest ways to save thousands of dollars – opt for a 15-year fixed rate mortgage if you’ll be buying a home this year. The average homeowner saves over $100,000 in interest to the bank. You read that right!
And for those just starting out with a budget, this app is dead-easy, and free.
This post is a collaboration with our friends at Responsival
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