First, everyone and I mean EVERYONE should have a budget. It doesn’t matter if you earn a high income or a low income, you need a budget. A budget is simply a PLAN for your money. Creating a budget is a simple thing to do, but it is not easy to stick to it. And there are times when you will need to cut things from your budget.
Use the type of budget method and budget tools that will help you best
If you are living paycheck to paycheck (no matter your income level), you need to decrease your spending. In other words, you need to cut some things from your budget. I want you to be saving money and paying off your debt.
Here are 5 things that you should cut from your budget right away.
1. Cable TV
2. Subscriptions (Hulu, Netflix, Spotify, Sirus XM, Sling tv, etc)
3. Gym memberships
4. Home and Auto insurance
5. Cell phones
Remember there are seasons of life. There will be seasons in life where you need to cut back on your spending and seasons of life when you can spend more and splurge a little more. There are also a lot of other areas you decrease your spending on too. This is just a starter list.
1. Cable TV
When we cut our cable, we saved at least $80 per month! We had been watching 2-3 channels for years. (HGTV, DISNEY, and I can’t even remember what else) Why we didn’t think to cancel it sooner? WHO KNOWS! But I am so glad we cut ties when we did.
2. Subscriptions
Do you even know how many monthly or yearly subscriptions you are paying for? I sure didn’t until recently. By cutting down our monthly subscriptions I’ve saved us at least $100 per month. We do have a few subscriptions still, including Netflix and Amazon Prime. But we’ve gotten rid of a lot of subscriptions that just weren’t worth it to us as a family.
3. Gym Memberships
Ok, I don’t have a gym membership and I only had one for like 1-2 months in college. There are times when I want to join a gym and think it would be worth the money to join one. However, I remember that I can exercise at home, even in the winter, I just don’t make the effort. I have taken up walking again, but I am not as committed to it as I once was. Life is busy and I can always find an excuse to not walk, even though I enjoy it. But by exercising at home, you can save yourself lots of money!
4. Home and Auto Insurance Premiums
Did you know that you might not be getting the best bang for your buck with your home and auto insurance company? I know, crazy, right? Well, shopping around, and getting estimates from multiple insurance companies every year can save you hundreds of dollars a year. It is worth the time and effort to compare prices annually.
5. Cell Phone Carriers and Plans
This is one area we are personally bad in. We spend a small fortune on our cell phone plans. But you don’t have to! My husband farms and he works in really remote places with very limited cell phone service. So, we opt to pay more for better service. But many of you don’t have to. By shopping around for different carriers and plans you can save hundreds of dollars a year!
These 5 things seem like easy and somewhat tedious tasks and things to cut or shop around for, but you can literally save LOADS of money every month and even more over the year. Putting in a little effort can go a long way.
Imagine what you could do with hundreds if not thousands of extra dollars per year by cutting out these 5 things from your finances. You can use the money you are saving per month and put that money into an emergency savings account or use it to pay down your debt.
For me, my budget reflects my life and tv isn’t that important to me any longer. But at one time in my life, it was important to me. So, it was easy to cut our cable bill. Our cell phone reception and unlimited data is a priority because I use my phone for my businesses and we need the best reception for my husband’s work locations. I also needed to cut back on my spending so I could spend in other areas that are important to me, including youth sports.
Your budget should be a reflection of what you value and what is important to you. Take a look at your budget and cut out what doesn’t make sense to keep paying for.
If you have any questions on how much money you should be saving or paying onto your debt or how to pay off your debt, be sure to check out my other blog posts or connect with me. I offer courses, a podcast, and 1:1 Money Coaching, you can go to Jesswaynecoaching.com to learn more and I would love to connect with you!
