With the unemployment rate at an all-time high, many of us are looking for different ways to reduce our spending and increase our savings. Here are my top 7 tips to optimize your budget.
Write out your monthly expenses
You need to see where every penny is going. So, write down everything! Including groceries, monthly hygiene supplies, entertainment, and all reoccurring bills, leave no stone unturned.
Eliminate unnecessary expenses
This is where you will need to determine where you can make some cuts. I find it easiest to separate my basic “needs” from “wants”. Make adjustments where you can afford to and put the extra money in your savings.
*example below*
| NEEDS | WANTS |
| Rent/utilities | |
| Car insurance | |
| Groceries | |
| phone | |
| Gas for car |
Find the best deals
There are tons of companies out there competing for your dollar, shop around to find your best options. You could save money by contacting your car insurance company and inquiring about new discounts available to you or even find savings by bundling your cable and internet. If your current company doesn’t offer the best deal, switch to a provider that does.
Make a shopping list
How many times have you left the store and said to yourself “I didn’t plan on buying these items when I walked in there”. Too many to count right? Yeah, me too. Start making a habit of writing down your shopping list before going into ANY store and hold yourself accountable. Refer to your budget and try not to go over that allotted amount for the month.
Maximize your cashback
Use your credit cards that offer cashback bonuses on the items you buy monthly to maximize your savings/ cash return. If you don’t have a credit card, contact your bank and inquire about your options.
Reward System
Give yourself intermittent rewards for staying disciplined with your budgeting strategy, if you’ve eliminated eating out from your budget, treat yourself after 3 months of consistency.
Set a Goal
After exploring all of your options for reducing your monthly expenses, determine a realistic financial savings goal. Monitor your progress biweekly to monthly in order to stay on track.
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