Let’s face it – there are some things we spend money on pretty regularly that are wants, not needs. While paying off debt or building up savings, it’s important to look over your monthly budget and figure out where you can cut expenses. You can always find categories to cut out entirely or at least reduce significantly. In case you need some help, I’ve come up with a list of the top 4 things to cut from your budget. These were the first things I cut out or reduced when I started getting serious about building up my savings. If you’re currently paying off debt, cut these 4 things from your budget and you will ensure that you have more money left over at the end of the month to put toward your debt snowball or your savings.
1. Beauty
I understand that it’s important to look your best, but there is always a way to do it frugally. Beauty should be one of the first things to get cut from a budget because it’s not a necessity. Here are some things you can do to greatly reduce your beauty expenses:
- Don’t go to a salon to get your hair cut or colored. Go to a beauty school instead and have it done by a student for a discounted rate.
- Instead of getting your mani-pedis done at a nail salon, stay home and paint your nails yourself. You have more nail polish at home than you can finish in a lifetime anyway (I know I sure do). You might as well put it to good use!
- Instead of buying makeup at department/beauty stores, buy it at drugstores or off price retailers (like Ross or Marshalls).
2. Entertainment
I’m referring to television, movies, music, books, video games, anything you do just to pass the time. If you could cut these things out entirely you would definitely find yourself with extra money leftover at the end of the month. And if you instead spent that time being productive or doing things to earn more money, that’s even better! But I realize that sometimes you just need some downtime to decompress. So here are some things you can do to reduce your entertainment expenses:
- Cut cable and sign up for a streaming service like Netflix or Hulu instead.
- Instead of going to the movies or renting a movie from Redbox or on demand, watch movies that are already available to you at no extra cost (such as free movies on your streaming service, or free movies on demand through your cable provider). You can also check out DVDs from your local library.
- Instead of buying books at a bookstore or ebooks through your e-reader, go to your local library. You can even look up the book you want ahead of time and request it if your branch doesn’t currently carry it. You can also get ebooks through your library using apps like Libby or Hoopla. Also, try Youtube for free audiobooks.
3. Clothing
Look, I’ll be the first to admit, most days when I look in my closet I find myself thinking I have nothing to wear! But in reality I know I have more than enough, and so do you! So unless there’s a really huge, important event you absolutely have to buy a new outfit for, you can probably go without shopping for clothing for the next few months, if not the next year. However, if the thought of going that long without shopping for clothes is putting you on the verge of a panic attack, here are a couple of things you can do:
- Go through every item in your closet and dresser drawers and pull out 10 things you don’t wear anymore. Try listing them on Poshmark, eBay, or any other listing site. Whatever money you make from those sales can go toward buying some new clothes (although I would recommend than you use that money to pay down your debt or build up your savings faster).
- When you do buy new clothes, stick to off price retailers such as Marshalls or TJ Maxx, discount department stores such as Walmart or Target, or if you want to go really frugal, go to a thrift store.
4. Restaurant
Eating out is a luxury, not a necessity! Most restaurant foods are overpriced, and when you factor in drinks, tax, and tip, you’re flat out paying too much! It’s best to stay away from restaurants entirely when you’re working toward paying off debt or building up savings. You can cook all your meals at home for a fraction of the price. And if you cook large batches of food you’ll have leftovers to pack for lunches and/or freeze for future meals. This eliminates your excuses (I don’t have anything to take for lunch so I guess I’ll have to buy it. I’m too tired to cook dinner so I’ll just pick something up on my way home). If you do find yourself inside a restaurant at some point, here are some things you can do to save money on the bill:
- Don’t order drinks – water is free and is better for you anyway. At $2.50 for a soda or a lot more for an alcoholic beverage, you can’t afford not to order water.
- Share an appetizer – one big appetizer, such as nachos or a sampler platter, can be just as filling as an entree, but less expensive. And if you’re sharing it with someone else you will save even more money.
- If you go to a fast food restaurant, try to order off their dollar or value menu. And again, order water.
Temporary sacrifices
Now I know it feels like I just came along a put a big wet blanket on all your fun. You probably think I’m trying to stop you from enjoying your life. That actually couldn’t be further from the truth. I want you to be so financially secure that you can live life to the fullest and not have to deal with any of the problems and limitations your finances are giving you at the present moment. But the only way that is going to happen is if you temporarily make some sacrifices.
So which of these 4 wants (not needs) will you cut out of your budget today in order to build up treasure for tomorrow? Comment below with your answers and any other methods you use to cut or reduce expenses in these 4 budget categories.