Are you trying to find ways to cut your expenses this year but don’t really know where to start? The good news is you can start by recognizing the most likely places you’re overspending.
Links:
- Read this CNBC article for more categories you're likely to overspend
- Follow our Facebook, Instagram and Twitter pages!
- Learn more about Triangle Credit Union
Transcript:
Welcome to Money Tip Tuesday from the Making Money Personal podcast.
With costs going up on everything from utilities to groceries, most people are taking a closer look at where so much of their money is going.
It’s time to start evaluating your expenses and see where you’re most likely to be overspending.
A 2019 survey from Slickdeals.net, reveals some of the most common areas adults overspend.
If you’re ready to take back control of your spending this year, start by examining and adjusting your spending in any or all of these categories.
1. The first is online shopping. I know, big shocker right?
You can’t beat the convenience of online shopping, and you’ll often find better pricing for goods than if you were to go to a physical store.
The challenge with online shopping is the impulse factor. If you’re like me, you probably go online looking for one item, but then end up purchasing additional things you didn’t originally intend to purchase.
Things like apparel, electronics, footwear and pet care items are some of the most ordered online.
If you want to cut back in this category, try a few of these suggestions.
First, set a spending budget. You need to set a limit on how much to spend online.
Try switching your default payment method from a credit card to a debit card. This puts the responsibility on you to make sure you don’t spend more than you have. It’s critical that you keep an eye on your checking account, so you don’t overdraft your account.
Disable notification from shopping sites and apps and unsubscribe from promotional emails. Don’t let the apps tell you when to buy or what to buy. Silence them so you don’t get pressured into making an impulse purchase.
Uninstall shopping apps from your phone. If you constantly find yourself opening these apps, especially when you’re bored, it’s time to take away the temptation. You can always reinstall them later once you’ve grown more disciplined with your spending habits.
2. The second category adults overspend is on food. This includes both groceries and dining out. If you’re spending too much money on these then you should find a way to cut back.
It’s so easy to impulse purchase at the grocery store, dining out daily for lunches, and spending too much when going out. I also want to mention that ordering through delivery apps like DoorDash or Uber Eats are part of this category. They’ve made it all too easy to conveniently order food that comes right to your door. Not only are you paying for the food, but you’re also tipping the drive and paying a delivery fee. Cutting back on food consumption is a must in today’s hyper-convenient dining world.
How do you cut back here? Make a shopping list and buy ONLY those items. This might sound simple but it’s not as easy as you think. Keep yourself limited to only the items you need to buy and nothing else.
Bring cash to buy your groceries. This might seem archaic, but can you think of a better way to keep yourself from overspending? You can’t spend what you don’t have and if you don’t have the cash, then you’ll be forced to either tally up all your items or put things back that you can’t pay for.
If you’re used to buying lunches while at work, cut back on how many you buy. Instead of every day, bump it down to maybe once or twice a week and pack your own lunches for those days when you won’t buy lunch out.
Set a budget for dining out. Cut back on how many times you go out and learn to make more meals at home. You’re less likely to be upsold on specialty drinks apps and dessert and you’ll likely cut calories too.
3. The third category where adults overspend is on subscriptions. How many subscriptions are you paying for right now? Are you even using them all? Most of us are paying for multiple subscription services that we barely use.
Video streaming may be the first thing you think of, but there’s gaming platforms, food delivery subscriptions, other goodies like beauty products, personal care, online software and account access, online music platforms the list keeps going.
If you want to cut back here, take an assessment of every subscription service you have. I mean EVERY, even if it costs you 2-3 dollars a month.
Ask yourself honestly how much value you’re getting for the service and if it’s worth the price. Look at which ones have gone up in price, because that can happen after a few years or if they change their pricing models.
Cut out anything you don’t use anymore. If you’re not using it, then you’re overspending on it.
4. The fourth category adults overspend is on technology products. This includes phones, smart speakers, TVs and other gadgets.
Stop and take a quick look around your environment whether you’re at work or home. How many tech devices do you own? This includes smartphones, tablets, computers, gaming consoles, smart speakers, smart watches, TVs, plus any other home devices like Nest and Ring. All those items come with upfront costs and sometimes recurring costs like a service charge or maintenance costs.
How do you avoid overspending on technology since it’s practically a necessity for our day-to day living?
Try to make your devices last as long as they can. Take good care of them and keep up with maintenance.
Wait a little longer to purchase the newest item. Prices are usually high at the time of release, but can fall a bit if you wait a little longer
Consider purchasing a used or refurbished item. You can save quite a bit of money. Just make sure the reseller is reputable.
If you’re feeling the crunch and are looking for ways to cut back on your spending, start by cutting back in any or all of these categories.
If there are any other tips or topics, you’d like us to cover, let us know at tcupodcast@trianglecu.org. Like and follow our Making Money Personal FB and IG page and look for our sponsor, Triangle Credit Union on social media to share your thoughts.
Thanks for listening to today’s Money Tip Tuesday and be sure to check out our other tips and episodes on the Making Money Personal podcast.
Have a great day!
Comments (0)
To leave or reply to comments, please download free Podbean or
No Comments
To leave or reply to comments,
please download free Podbean App.