Time to save...
All, right, you’ve seen the commercials for the financial app that will show you all your subscriptions. This way you can cancel the ones you don’t use. There’s an easier way. Simply review your credit card or bank statement. I reviewed my credit card statements from January 1st to the end of June. In doing so, I have already saved myself over 350 dollars a year. Go me!
The point is that we all have subscriptions that we don’t need anymore, or never needed. “But as cost-conscious Americans tighten their belts in an uncertain economy, they are noticing how quickly these monthly charges can add up. Some 6 in 10 U.S. adults are considering breaking up with some of their paid subscriptions, according to a recent CNET survey. “ ‑ Bailey Schulz and Jessica Guynn, USA Today
With prices of alcohol, food, and gas on the high side and international tariffs making foreign items cost more, people are looking for ways to save money.
1. Start with a budget (I have had a yearly household budget for 20+ years). More information and worksheet link below.
2. Impose a 24-hour rule before making a purchase, making it easier to pass on unnecessary impulse buys or calculate purchases based on the number of hours worked or how much of your paycheck would be used up.
3. Cook for yourself (groceries are cheaper than take-out).
4. Consider a staycation or local day trip to avoid the high gas prices.
5. Invite your friends over for a BYOB night instead of paying a premium at bar or club or a potluck dinner party (no tip necessary).
6. Consider saving money as taking care of your future self (especially contributing to a retirement account).
I am headed to a movie in the theater with a friend, and it is the first time in many years that I will do so. I usually like my movies free on Netflix or Hulu. The price of the ticket and then maybe popcorn too, and it’s no wonder that others and I prefer free movies on streaming services.
Budget 101
“A budget is a plan you write down to decide how you’ll spend your money each month. A budget shows you: how much money you make, how you spend your money.” — Consumer.gov
Your budget should have a line item for every spending category (i.e., Groceries, going out, medical, clothes, necessities, etc.). Should also have a line item labeled Misc., and if you’re saving money, that should be a line item too. If you like my 20-year-old daughter and use your debit or credit card for all spending, then you can calculate this number by looking at your statements for the last three months to get the monthly average in each category. Then compare this to your income.
If you want to take a page from the book, The Richest Man in Babylon, then save 10% of your income before any spending happens.