Do you feel like your bank account is always dwindling? In today’s economy, it’s a rather common feeling. You may think it’s all being used for necessities like food, housing, and gas, but that’s probably not 100% true. You may be spending and not realizing it — whether that’s because it’s an emotional reaction, unexpected costs, or a recurring unused subscription. Regardless, life is expensive and you may be feeling the pressure.
Luckily, there are ways to take control of your budget, even during times of uncertainty. Keep reading for four ways to avoid wasting money over time and stay on top of your spending.
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1. Get Insurance
It may seem counterintuitive for the first suggestion to be something you spend on. However, insurance plans can save you a big chunk of change in the future. Insurance protects you from financial risks due to unforeseen circumstances, such as illness, natural disasters, and accidents. Whether it’s your fault or not, the insurance company will back you up and be on your side when disaster strikes.
Of course, before you purchase just any insurance plan you’ll want to do some research. Know your risks and consider your current living and health situation. You may not need premium health insurance if you’re a relatively healthy individual, for example. Also, it’s a good idea to get quotes from a few institutions to know what you’ll be paying each month and what the plan covers. Getting quotes, such as a home insurance quote or auto insurance quote, is free and easy to do online.
2. Review Your Subscriptions
Recurring subscriptions can be a money pit. From streaming services to clothing boxes to health and wellness apps, the amount of subscriptions out there is endless. While having the money automatically deducted from your account is efficient, sometimes it can almost be too efficient! You may not even realize that you’re still paying for something unless you diligently check your balance each month.
At the end of a quarter, go through your bank statements and see if there are any subscriptions that you’re no longer using. They could have been purposeful for you, but you may not need them now. Cutting unused subscriptions could save you a lot of money in the long term. On average people spend almost $300 on subscriptions each month, which is $200 more than they think they do. Go on the site and either pause or cancel altogether. Your wallet will thank you.
3. Adjust Your Thermostat
Heating and cooling costs can really add up, especially if you live in an area with frequent weather changes. The Department of Energy says you can save as much as 10% every year simply by adjusting your thermostat. They recommend reducing the temperature by 7-10 degrees for eight hours a day. If this seems too stark to you, reduce it a few degrees at a time. You may be surprised how quickly you and your family become accustomed to the new temperature.
While you’re at it, you may want to consider installing a high-tech thermostat. The newer ones on the market can be scheduled from your smartphone. So when you’re at the office or on vacation, you can adjust it. Many also have energy-saving features and can adjust to these temperatures automatically. Lastly, by looking at your trends over time you can establish better habits, which will ideally have you saving money on your bill.
4. Limit Food Delivery
Yes, takeout can be fun and convenient but if the DoorDash, Uber Eats, Grubhub, or Seamless driver starts to recognize you then you may have a problem. Service fees, state or city-mandated taxes, and other fees can lead to a large cost on your end. And this doesn’t include the tip! For someone to drive or bike to your home and deliver the food, you should leave a reasonable tip.
This isn’t to say that you should forgo eating out altogether; rather, be mindful of how often you’re getting food delivered. Can you choose a local restaurant and pick it up yourself on the way home from work? Or maybe you and your family can select a few easy meals to make during the weeknight together? A homemade pizza night is a fun activity to do with a significant other or the kids. You’ll have dinner on the table and likely unforgettable memories too. As an added bonus, it usually costs less.
Money-Saving Tips and Takeaways
While the idea of budgeting may not sound like fun, seeing more money in your bank will be rewarding! Budgeting starts with facing the facts and looking at where your money is going each month. See what percentage is going toward these necessities and how much you’re really spending on the niceties of life. If you’re in a committed relationship or married, ask your significant other to look at your statements with you. Another set of eyes can help address areas where you may be able to save.
The key to sticking with a budget is making it work for you. If you limit your spending too much, you may feel like you’re stuck at home and unable to go out and enjoy life. Be reasonable with your first budget, looking at the areas addressed above to trim down your expenses. Then, look for additional money pits in your life, such as debts with high interest rates. Going through your financial situation methodically can help you stay on track and continue to refine your budget.