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I think it’s important for everyone to review thier expenses at least once a quarter. I own a small business, and for my small business, we use accounting software. I firmly believe in families using budgeting software because it helps to identify where the money is being spent. When you know exactly where everything is being spent, you know where you can save. However, even when you know where the money is being spent, there are always ways to save money on a tight budget.
Join Local Grocery Store Rewards Program
One expense that everyone has, and you need to survive is your weekly grocery or food pick up. Groceries over the past decade, it seems, has gotten so expensive! Everyone has stories, “I remembered 20 years ago, beef only cost $2.00 / lbs.”
For a family of 3, our grocery bill is close to $165 every week, which totals $8,500 every year. That is a substantial cost and is your second costly expense behind rent or a mortgage. When we look at our expenses, let’s target the big guys to see what we can do.
Check to see which grocery store around you has the best membership program, quality of food, and prices. Sign up for thier membership program, or sign up with an account with that local grocery store. Typically grocery stores have loyalty programs, for example.
Where I live, we have Price Chopper grocery stores. They have had a fuel advantage program. Every time you spend a certain amount of money, they will give you gas credits. Also, throughout the store are bonus buys, which amplify your gas credits. I won’t go into a ton of details, except I ensure I get all the store’s bonus items (items I would actually use), and I shop exclusively at price chopper. Every month I rack up enough gas credits to get my truck a free tank of gas.
When you think of that, I tank of gas for my truck costs roughly $50.00, and I get a free fill-up every month due to the savings! Over the course of a year, that equates to $600.00 in savings.
Save Money Shopping Online
If you are shopping online for any items, you can add an extension on your browser called Rakuten. Whenever you check out somewhere, Rakuten will search and automatically apply discounts and cashback to your orders.
Most companies have coupons for a lot of various products. However, most people don’t have those coupons to apply them. Rakuten will search for those and apply them at checkout! If you haven’t seen Rakuten, you should check it out because they already have 3 million users.
Save Money By Cutting Your Cable
Canceling your cable subscription or cord-cutting is becoming a widespread trend. I remember when I cut my cable almost 5 years ago. My cable bill with internet and phone service through Comcast was almost $200.00. It was ridiculous that I was paying almost $2,500 a year for TV and the internet. That is a sizable expense for a family and a small car payment.
There are a lot of various options for TV in this day in age. Check out the article that I wrote on cord-cutting to give you some amazing alternatives that can save you upwards of $100.00 a month!
Cord-cutting is at an all-time high, according to Fortune Magazine. Check out the article here.
Refinance your house – Lower Your Interest Rates
I always like to bring this up whenever I talk about ways to save money. Housing is your biggest expense, whether you own it or you rent it if you own your house though we are in a perfect time to refinance.
Why would you want to refinance your house? Or what doe refinancing do? When you buy a house, you will be financing it through a bank. When purchasing the house, and based on your credit score, you will have a certain interest rate on your mortgage for your house.
Higher interest rates mean you pay more interest and less principal, and conversely, lower interest rates mean you pay less interest and more on your house’s principle.
Currently, mortgage rates are 3% or below, and if you have a current rate anywhere 4%, you could be saving potentially at least $100.00 a month, if not $200.00 a month.
I also wrote an article on refinancing your house; you can check it out here.
Eliminate Balances On Your Credit Card
If you are looking for ways to save money on a tight budget, be sure you will not carry any credit card debt. Credit cards are the most expensive form of money. Credit cards typically carry a charge of 15% to 20% interest rates. If you are carrying any balance on your credit cards, you could be spending at least $100 in finance charges.
Keeping your credit cards paid off every month has several benefits. First, you won’t be paying any finance charges, which is equivalent to throwing money away. If you don’t have any balance on your credit cards, you’ll have a much better credit score. The higher the credit score, you have the lower interest rates you’ll get when you go to buy a car or a house.
Make Money At Home
We talked about cutting bills and expenses throughout this article because we are on a tight budget. To reiterate, I think it is important to review your expenses on a routine basis and even use software to track your expenses. Software like QuickBooks. Check out QuickBooks below. Even if you don’t have a tight budget, you should track your expenses to save any excess funds.
But what if you don’t have any excess funds? What do you do then? It would be best if you trimmed down as much as you can so your expenses match what you are bringing in. That isn’t enough, though; the long term answer can’t be to live on bread and water. We have to change the position we are in, right? That’s what I’m doing; every night after my daughter goes to bed, I’m an affiliate marketer to make money at home.
So if you are in a position where you have to trim everything to get by completely, we need to change that position. How is that position going to change? What are you going to do about it? I’ve written an article here about affiliate marketing if you are interested.
I think a lot of people can look at thier spending and find ways to cut. There is nothing wrong with being frugal and smart with your money; it doesn’t mean your cheap; it means your smart. There are many ways to cut your expenses, and you can find more that I put together here.
Everyone’s position is different, and it always changes. What works for one person might not work for another. For example, I was going through and cutting my expenses after COVID 19 hit. I needed to cut down my spending. I ended up quitting smoking, the expense was one reason, but health was more of a factor. Either way, I had that expense, so I was able to save; however, many people reading this article might not smoke at all, so that might not be an option.
I hope you enjoyed the article, and I hope some of the items were new, and it will help you out. Let me know if you have any questions! Leave a comment below! Thanks!
Disclosure: I only talk about my experience, what I’ve done, and what I’ve used, and I only endorse products that I genuinely believe in. However, some of these links in the article are affiliate links, which means that I will earn a commission if you try out these services and products. It won’t cost you anything additional, but it will help me and my family reach our dreams.