The rise of inflation across the country has affected the wallets of many Americans. From raised rent prices to inflated grocery bills, you may be feeling the impact of inflation in your life. One of the ways you can combat inflation is by increasing your budget as much as possible and making sure that your money is going to the right places. Check out these 5 ways that you might be wasting money every month!
1. Subscription Services
We all love our subscription services! Services like Factor and Cook Unity make it easier to eat protein-packed meals throughout the week and save money on groceries. Hulu, Peacock, and Netflix can entertain us after work and make the weekends a little bit more exciting. While there are a lot of subscription services that do not break the bank, having a lot of them at once will add up quickly! If you are paying for multiple streaming services or gym memberships, it may be time to sit down and go through your bank statements to weed out the services that you aren’t using. Don’t waste money on services or subscriptions that aren’t worth it!
2. Impulse Spending
Another way to crack down on your finances is to curb your impulse spending. When you’re stressed or going through a tough breakup, it is easy to rack up credit card debt and spend without your emotions in check. If you want to stop wasting money, you need to set a budget for your sweet treats and avoid impulse shopping trips online or in person! The easiest way to do that is to still allow yourself to have a small budget for impulse purchases throughout the month. You don’t need to quit cold turkey, but you do need to keep your spending habits under control. Instead of spending $300 at target after a bad day at work, consider spending money on a hobby like crafting or knitting! Instead of buying items that temporarily fix the itch, you can spend a smaller amount of money on the materials to start your hobby and invest your time into creating cool things.
3. Eating Out
If you do not make a plan for your meals before the week begins, it’s easy to waste money on eating out and food delivery services. Ordering DoorDash may seem like a good idea after work when you’re feeling lazy, but your wallet will not be happy! Eating out is fine as long as you can fit the cost into your budget without any difficulties. If you are having trouble paying your bills, it may be time to avoid trips to Wendy’s and focus on eating more frugally throughout the week.
4. Not Shopping Around or Using Coupons to Get Deals
Before you sign up for a new car insurance provider, get a new utility service, or buy a new or used computer, it is important to shop around and make sure that you are getting the best deal possible! This advice extends beyond the examples mentioned above. You should be shopping around for groceries too! Some stores are more likely to jack up the prices than others. Chain grocery stores like Jewel or Kroger may have higher prices than Walmart or Aldi. It’s important to get the most bang for your buck to ensure that you aren’t wasting money!
You can also use coupons and deals to save as much as you can when grocery shopping or picking out a new car insurance provider. Use coupon apps or websites to get grocery coupons before you head to your local store! Some grocery stores will advertise in store promotions that you can take advantage of during your next shopping trip. If you want to get the best deal on insurance, remember that many providers will offer bundling deals! Shopping around and using coupons can be the best tools in your toolkit to avoid wasting money.
5. Name Brand Loyalty
Being loyal to brands when you are shopping for groceries or clothes is another easy way to waste money. In some cases, it’s worth it to splurge and get the brand name item. But for items like flour, butter, or other goods, you can save a lot of money by simply buying the generic version of the item! For example, you don’t need brand name flour to make a good loaf of bread, but you may want Oreos if you want to experience the classic Oreo cookie flavor.
However, for items like clothes and shoes, buying cheaper or “generic” pieces does not mean you are saving money. Cheaper items that are made with polyester are essentially plastic and will usually not last more than a few washes or wears. You want to buy quality pieces that will last you a few years instead of a few months!
Buying higher quality pieces does not always mean that you are investing in a brand. Instead, you should invest in materials that are made to last! In some cases, that can be a brand name, but in others, you may find high quality shoes and clothes that are made of 100% leather, wool, or silk at thrift stores or through online storefronts.
Tips for Increasing Your Budget and Minimizing Waste
The recommendations mentioned above can help you stop wasting money, but you can also consider other tips to increase your monthly budget!
First and foremost, in order to increase your budget, you need to be already tracking your spending habits through a solid budgeting plan. Make sure to keep a detailed record of your fixed and variable monthly expenses to identify where your money goes each month! Once you have a better understanding of how you are spending your money, you can find areas within your budget where you might be living beyond your means. Many financial experts recommend using the 50/30/20 rule (50% of your income is for needs, 30% for wants, 20% for savings / repaying your debt) as a guideline to ensure that your budget is as balanced as possible. With this budgeting rule, you can learn how to prioritize your needs over your wants and focus on creating an achievable balance. With the right balance, you can focus on practicing mindful spending and building an emergency fund! Before making a purchase, ask yourself if it aligns with your financial goals and if you are still within your budget for the month. If the answer is yes, go for it!
You can only increase your budget when you have a solid foundation to start with. Having a budget in place and a savings account will prevent the need for you to rely on credit cards or title loans when you’re overspending and fall into debt. Remember that not wasting your money is just a stepping stone to learning how to save and spend your money as wisely as possible!
How Often Should I Be Revising My Budget to Save Money?
As a general rule of thumb, you should aim to revise your budget at least once a month to make sure that you aren’t wasting your money. If there are any discrepancies with your planned versus actual spending, take the time to sort through your transactions and see if you can cut back in the future. If there are any changes in your income (such as a raise, job loss, or a new job) you should change your budget to reflect it as soon as you can.
