5 Things Eating up Your Budget

In adult life, it often seems like there is just no way to hold onto money. No matter how secure you feel each time a new paycheck comes rolling in, you inevitably feel a bit hopeless when you still find yourself just scraping by before your next payday. However, there is no reason that it has to be this way. Always remember this, it’s the little things that add up to eat away at a budget.

This is why it is important to always know where you money is going, even if it’s just on small, pointless things. Being smart about your money means having a command of all of these little things. Making small changes to some of your spending habits can drastically effect for bank account for the better! Here’s some of the things that are likely eating up your budget every month…

1. Food

Eating out is one of the biggest things that can add weight to your monthly expenditure. While it may seem a lot easier than staying in and cooking a meal, yourself, dropping a good chunk of change on every meal out will add up quickly. Cooking at home is usually a much less expensive option, especially if you plan your meals out. Not only that, but it can also be a much healthier option, as well as tastier (as you increase your cooking skills).

However, eating in is only half the battle. You need to be smart about how you go about buying your groceries. Typically, it’s much cheaper to buy your groceries in bulk. Also, don’t be afraid to use coupons and such, as every cent adds to a larger goal

2. Entertainment

Simply put, cable is freaking expensive, with the average American cable bill arriving at a shocking $80 a month. At the same time, going out to movies adds up to a highly expensive experience, as well. Between rising ticket prices and the astronomical price of snacks, a couple date nights to the cineplex could cost as much as the aforementioned cable bill!

There are too many affordable internet options around today to justify this cost. Netflix, Hulu, Roku, and Amazon Prime have better services than cable, and at a mere fraction of the cost. Cutting back on your entertainment spending could save you hundreds of dollars a year, while you could be getting even better services.

3. Phone bills

Phone bills add up to big spending, over time. Most unlimited data plans cost well over $100 per month, per person. However, most people don’t need to be attached to these astronomical, expensive plans. Connecting to wi-fi when you can, as well as spending a little less time on your phone, makes unlimited data plans an unjustifiable expense.

Shop around for cheaper alternatives. If you use your data wisely, you can get pretty terrific plans at less than $40 per month. This simple change could save you close to $1000 per year!

4. Transportation

Cars are a very expensive commodity. Not only do you have to pay big money for the car, itself, but you also need to fork out monthly expenses of gas and insurance. And even though you are paying for insurance, there is a good chance that you will be left with the bill if it ever breaks down. As we all know, repairs can be incredibly costly, and be needed at inopportune moments.

Try to get by with cheaper vehicle solutions. At times, ask yourself if you even need a car. In many areas, having a bike, as well as a public transit pass, can make getting around quite simple, and even provides a healthier solution.

5. Coffee

Like food, having coffee out is actually a much bigger cost than you may think. Having a morning latte on the way into work every day adds up. Most of the time, coffee out will cost roughly $3-$4 per cup. If you’re a daily drinker, that adds up real quick, as you could be spending close to $100 a month on coffee.

That could add up to $1200 a year! Instead, opt to make your daily coffee at home. You could buy bags of high quality, gourmet coffee beans and it would still be much cheaper than drinking coffee out!

For more advice and information about saving money so that you can save up for big purchases, check out this helpful and informative article here.

Tags: your budget

Category: Budget