5 Tips to Overhaul Your Budget
If you’re trying to be a responsible adult, the chances are that you’ve read a million articles about setting up a budget. However, the advice can get dry after a while.
Yes, you’ve cut back on fancy coffees, you’ve tried getting a side gig that didn’t work out, and you’ve unsubscribed from those emails that convince you to online shop every day.
But you’re still struggling to see any results in growing your savings account. Well, here are some ideas to help you re-evaluate your budget and see real results:
Negotiate Your Bills
Did you know that those items that you have marked in the “inflexible” column of your budget are more flexible than you think?
This is one of those things that just might make you mad when you realize the truth.
I personally once talked down my internet bill from $80/month to $30/month for exactly the same service. Isn’t that ludicrous?
There’s a lot of wiggle room in those charges that you just take for granted as a fixed rate. Pull out your phone and polish up your budgeting skills.
- Medical bills can actually be flexible, and healthcare providers would rather be paid something than nothing. Medical debt is the most common cause of bankruptcy. When you call to dispute your medical bills, you may find yourself saving hundreds of dollars per month in your budget.
- Cable and internet bills have a lot of wiggle room, as I mentioned above. Shop for competitor rates, and then call your current provider and ask them what they’ll do to keep you from switching to the lower advertised price of a competitor.
- Phone bills follow the same principle. Your carrier wants to keep you as a customer, so let them know that you’re thinking of switching to something cheaper and see what they have to offer.
- Compare insurance rates. Evaluate what you’re getting and whether you actually think it’s worth the money. Look at options for bundling in order to get cheaper payments.
Re-Finance Your Loans
The vast majority of Americans deal with monthly debt payments for student loans, a nice car, or a house.
Often, the interest rates on these items are given based on your credit score and history of payments.
Higher rates are given to people who are more of a risk, in order to mitigate the danger of not being paid back at all.
As you responsibly pay interest over months and years, you show yourself to be a solid investment for the loaning party.
Look into refinancing to see if your history of reliability makes you a candidate for a lower interest rate, also helping to keep your budget on track.
Go Minimal
It might seem crazy at first, but when you really think about it, you realize that the sheer responsibility of owning a lot of stuff costs you money.
Appliances have to be fixed and replaced, it costs extra money to pay for a big enough place to house them all, and many of us end up utilizing external storage just to keep things that we hardly ever use.
Every time you move, clean, and shop, you’re spending extra money for extra stuff. Sick of it yet?
Well, maybe it’s time to get really involved in the minimalist movement. There’s a reason that everyone is excited about it.
My advice is to start small. It’s not one big effort; it’s a lifestyle, and it’s best to transition into it step by step.
Sacrifice Something
If I eliminate shopping for ice cream, I save $10-$20 each month. That may not seem like much at first, but think about that cost over a year… for something that I really don’t need. Something that’s bad for me!
Sacrificing everything can make us feel stressed and seek outlets in places that are even more counter-productive.
However, sacrificing some things thoughtfully can greatly improve our quality of life.
Try it out for just a short amount of time, like Lent. Identify one indulgence that you can give up for 1-2 months, and then see if you can go longer, until you no longer want it.
Fix Your Commute
Americans spend thousands of hours each year commuting to and from work.
Changing your own commute might feel like a major upheaval. However, it could be a major upheaval that’s absolutely worth it.
Fueling and maintaining a car is one of the three biggest expenditures in your household.
But what if you were able to bike to work during the good weather? What if you carpooled with a coworker?
What if you utilize public transportation and get some work done on the train?
Think seriously about how you can change that commute to save yourself hundreds of dollars on gas and car maintenance each year.
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Category: Budget
