So you’re doing really on your money management journey. You’ve done everything from making a budget to getting started on saving for retirement. So what’s next? Well, now it’s time to revisit your budget and see if there’s anywhere you can cut back.
How do I get started?
The easiest way to get started on cutting back on expenses is to take a good look at your budget. If you did your budget a while ago, you may want to review your last few credit card receipts or list of debit purchases. With most of us paying by “plastic” due to the pandemic, we’ve all got a pretty good record of when and where we’re spending all of our money! You may be surprised at how much you’re spending on some areas. For me, it’s always a shock how much we spend on food – whether that’s groceries or take out!
Do I really have to cut back on expenses?
This is up to you. Unless you’re in a real budget crunch, you definitely shouldn’t cut out all of life’s little pleasures! With being stuck at home more and limited options for socializing, for a lot of us streaming services and snacks are one of the few things we can rely on! The key is just to be sure you’re getting pleasure out of the little extras you’re spending your money on. A few options for cutting back on expenses without getting rid of everything you enjoy is:
- If you enjoy takeout, look at less expensive options or getting takeout less often. Try picking up your takeout instead of using Door Dash or another delivery service.
- Be sure you’re really using all your streaming services. How much time do you truly have to watch them? If you’ve got four or five services, you may be able to cut back on a one or two. At worst, you save money for a few months and then sign back up again when you have more time!
- Purchases you have on auto ship. Auto ship is so convenient – stuff just shows up at your house on a regularly scheduled basis. But if you have more of a product than you truly need or just aren’t using it much any more, then it may be time to cancel or pause the auto ship.
Will this really make a difference?
Yes, it really will make a difference. Say for example, you do one less takeout a month, and one less streaming services, for a savings of 50 dollars a month. That adds up to 600 dollars a year. It may not seem like much, but every little bit helps when you’re saving for your future! You can use that money for everything from an emergency fund to a nice night away!
The Takeaway
Cutting back on your expenses is an important step on your money management trip! It doesn’t mean you have to give up everything in life that makes you happy – it just means you’re not spending money on things you don’t need or don’t use!
