Summer spending catching up to you? Here are some simple ways to cut your budget
Summer is one of my favorite seasons, but it can also be one of the most expensive. From vacations, to daily activities keeping the kids busy, these summer charges can add up quickly.
If you are finding yourself in the same boat, now might be the perfect time to revamp your budget.
The benefit of a great budget is that it can start to work like a well-oiled machine. However, don’t forget to go back and revisit every few months to make sure you are not spending unnecessary money. Just because you have something budgeted, and have the money for it, does not make it a necessity.
Here are some easy examples of places you could trim your budget.
Subscription services
Subscription services are a huge culprit of disappearing money. There are so many streaming and subscription services out there today, you might forget what all you have coming out of your checking account each month. These charges are typically small, but they add up quickly. Sometimes they end up being for services we rarely even use or services that could be bundled for a lower price point.
Start with your streaming services. If you have accumulated four, five or six different streaming subscriptions over the years, take a minute to determine if you are using them all. If you are, is there a better option out there that combines all of your needs into one lower monthly payment?
One great option would be the free trials being offered through cell phone and cable companies simply for being a customer – which brings me to my next point.
Call service providers
Sometimes adjusting your budget can be as simple as asking. If you call your cell phone or internet service provider and discuss your service charge, you may be surprised what they are able to do for you. That’s true especially if you are a loyal customer with a good history of on-time payments. You will never know if you do not ask.
Cut down ‘fun’ money
An easy way to shift your budget to be more savings oriented is to lower your allowance for entertainment purposes such as eating out, going to the movies, or travel and concerts. You absolutely still need to make time for yourself to kick back and relax, but cutting back spending anywhere possible will start to add up over time.
Re-evaluate income
Is it possible that your income has changed? Maybe you have begun picking up extra shifts, a second job or received a windfall. All of these would impact your income versus expenses ratio and should be accounted for in your budget.
Track everything
If you are really trying to change your budget, start being meticulous about tracking your spending. When you account for every single dollar spent, you may be surprised how your habits have changed — or that what you originally allotted for a certain budget category may not be accurate anymore.
Budgets are meant to keep us on a financial track to our goals, but they are also meant to be flexible. As our habits and situations change, our budgets should, too. Keep an eye on yours and make sure to evaluate every few months to be certain you are getting the most out of your money.
Kat’s Money Corner is posted on Dollars & Sense every Tuesday. Kat Hnatyshyn, when not blogging or caring for her little ones, is a manager with CommunityAmerica Credit Union. For more financial chatter, visit http://communityamerica.com.
This story was originally published July 27, 2021 at 5:00 AM.