Hey guys! I thought we could go over some amazing ideas on how to cut back on bills and go over some of the biggest money wasting mistakes. As of today March 31, most of us are locked up in our homes due to the Coronavirus. Some of us are working from home, others have been let go from their jobs for not being an essential business. So how can we start saving money? Where can we cut back and what are we doing wrong? Lets start off with what are we doing wrong!
Biggest Money Wasting Mistakes
1. Not Budgeting Or Skipping Budgeting- Every month you should sit down and go over your budget. Some months you may have to move expenses around to make things work. This will also allow you to see what bills need to be paid with each of your checks so that you don’t incur late fees.
But for the most part, they should be about even every month. Utilities have a tendency to go up and down with the weather. Make sure that you anticipate this fluctuation or you can also contact your utility provider to see if they have equal bill pay.
What is equal bill pay? Your utility company with take your average usage and divide it by 12 months so that your bill does not fluctuate very much.
Why is this better? Its nice to be able to set aside a set amount every month and during the winter months, you wont see your bill sky rocket because you have been paying extra every month during the summer to make up for it.
2. Not Making Financial Goals- Make financial goals. This will help you push yourself to a new height every month. Maybe you didn’t hit your goal for the month and that’s okay, just try not push it out more than 3 months.
If you have to continuously keep pushing out your financial goals, you may want to consider getting a part time job or being more realistic with your goals.
Take baby steps, your goals don’t have to be to double your monthly income! Maybe start out with making an extra $50.00 a month to help cover one of your bills.
3. Not Putting Any Money In Savings- Even if its only $20.00 a month, its good to put away some money for a rainy day. I most recently had debry hit my car, smashing my window and leaving several scratches and dents.
I had to pay a deductible for the damage, and then the next day I got a flat tire!! Yes, sometimes it is true that when it rains it pours… So lets make sure we have a savings umbrella!
4. Spending More Than You Earn- This is a super hard lesson for some of us to learn. I completely understand what its like to want more than what you can afford.
I’ve always pictured myself in a brand new home with the a perfect groomed yard and a brand new Lexus in the drive way… But in reality, what I can afford is a 3 bedroom 1921 home with a now 5 year old car.
That’s life.
If I really want to get that brand new home and Lexus I’m just going to have to work harder. I’m not going to go buy a Lexus tomorrow and then worry about how I’m going to pay for it and my other bills.
My point is, learn to love what you have or work harder for what you want. Don’t try to pretend you have money when you don’t. The only one that cares about what you own, is you.
Another thing you may want to consider is how much are you losing to gain these new possessions? Are you missing out on fun trips or family time because you think you need THINGS right now, right this minute?
If you do need these things, then you must put in the work to get them.
5. Borrowing- Borrowing money can be a very slippery slope. Not only can it tear apart your family if you never pay it back, but it will also make you feel bad when the person you borrowed money from is now having to cut back on their monthly expenses because they borrowed you money.
6. Paying Late Fees/Interest- Don’t put unnecessary purchases on high interest credit cards, in the end it is going to cost you way more if you cant pay off your card and interest starts to build.
I usually use my credit card to pay my bills but also use my check every two weeks to pay off that credit card. This will make it so I don’t incur interest and I build my credit.
Make sure you are not using more than 30% of your allowed credit, once you go over your 30% usage this will start to ding your credit.
7. Getting Too Steep Of Loans- Again, don’t get a loan for a car or home that is just simply too much for you to handle. I suggest writing out all of your bills for at least 3 months to see how much extra money you really have available for new purchases and loans.
This will give you a good idea of where you need to make cuts or how much you really can afford.
8. Not Knowing Where Your Money Is Going- Always keep track of where your money is going. In fact, now days most banking apps do this for you!
This will help you see where your money is going and if there are ways to cut out any extra expenses.
9. Using Loans For Personal Funds- Please don’t use student loans or car loans for your own personal expenses. This will just make it so you will be paying on your new purchase for years.
10. Getting Behind On Bills- Try to stay caught up on your bills. Its understandable that you may want to skip a month so you can go on a trip with your friends, or maybe see your favorite artist in concert but just remember you will still have to pay your bills.
If you do get behind on your bills, all you need to do is reach out to the utility center or creditor and explain your situation.
They should be able to put you on a payment plan to avoid suspension. I cant stress it enough CALL and talk to someone!
11. Paying Full Price- My kids know that my motto is never pay full price. When we go to the store for new clothes or shoes, we always hit the sale racks first. If there’s not something there that we like, then we leave and come back in a week or two.
Now if there is something that’s needed right then and there, well then I guess you have to get it. But I suggest doing a quick google search to see if somewhere else has it cheaper!
12. Emotional Spending- Retail therapy, everyone does it. Just try to do it at a dollar store or somewhere that has a really good return policy! It may have made you feel better at the moment but i promise your will be feeling the extra expenses when your bill comes.
13. Not Planning Meals- Always plan out your meals. This will stop you from over spending on groceries. Looking for more ways to save money? Check out my guide on how to save money on groceries.
14. Not Pushing Yourself To Make More Income- Always push yourself to be more and make more money! If there is something that you really want but cant afford, there’s no shame in getting a 2nd job to buy it. Remember# 4?!
Ill never forget a couple years back when I went shopping for a new fridge for my very first home on my own. My price range was $800. My boyfriend and I went to several different stores, I finally found one that was in my price range. It was white and very basic, but I knew how much money I had going into it and I knew that I needed to stick to my budget.
When we were all done shopping and i was heading toward the front of the store, a shiny new stainless steel fridge caught my eye. And i swear when you opened the doors it sang! My boyfriend looked at me and said, “Dear, I know you really love this one but it is out of your price range. Its $1200 you cant get it”. I knew I needed him for back up to steer me in the right direction!
Instead of being upset, I looked and him and said “Yes it is, I’m going to get that fridge I just need to work harder to get it”. So, I went back to work and put in a TON of overtime and then I waited for the next big sale to come around. And guess what? I bought the damn thing! And you know what… It still “sings” when I open the door!
Where To Cut Back
Cable TV- Remove cable TV or try and go with a smaller channel package. We use Hulu, Disney +, Netflix and I have Amazon Prime. For all of these, we pay less than cable TV.
Cut Out TV Programs You Don’t Use- Right now, I just cut out Fubo a TV streaming service because it was way too much and we didn’t use it as much as I thought we would.
Cell Phone Carriers- If you don’t owe money on a phone, consider trading carriers. Some of the more affordable carriers are Metro PC, Cricket and Sprint.
Taking Public Transportation or Riding A Bike- Cutting out gas and car maintenance will save you a lot of money off of your commute!
Stop Paying To Rent Movies Get Them From The Library- So, don’t shame me but I just found out two weeks ago that our Library has new releases for rent. Yep, free movies for 10 days and you can rent 5 at a time! Amazing, no more Red Box movies for me. Because lets face it, who actually returns those on time!
STOP SPENDING SO MUCH ON BIRTHDAYS AND HOLIDAYS!!!- We have a spending limit that we try to keep to for Birthdays and Holidays. I know it may not seem like a lot but here is ours.
For Birthdays:
Our kids Birthdays- $100.00 a piece
Adult Birthdays (mine and my boyfriend)- $200.00 a piece
I know, it looks unfair. We spend $200 on the adults and $100 on the kids, but the kids still get birthday parties and gifts from grandparents. I feel like as adults, we just don’t get spoiled as much!!!
Our parents Birthdays- $50.00 a piece
For other family members such as niece and nephews or the kids friends- up to $25.00 a piece.
For Christmas:
Everyone is the same, we keep it around $200.00 for both the kids and adults. However, I don’t include stocking stuffers and their Christmas Eve jammies.
Our parents- $50.00 a piece
And we have cut out everyone else for Christmas. I no longer buy for nieces and nephews or brothers and sister. Why? Because im not willing to go broke over a holiday and I don’t want them to spend money on us either.
Cutting down on how much we spend for Holidays and Birthdays has made it so we can add to our travel savings. The kids and everyone else in my family know that we cut out expenses so that we can have more fun throughout the year!
Cut Out Lawn Care and Maid Services- Cut out any services you can do yourself.
Cut Down On Day Care Expenses- This one is a hard one and i know it takes a lot out of relationships to do this but consider staggering your work schedules. One works morning and the other works nights. See if a family member can babysit for cheaper than a day care or during the summer, find a teenager.
Stop Using Name Brands- Stop using name brands, they usually aren’t worth the extra cost.
STOP SMOKING- I know what you are thinking, easier said then done! But guess what, I quit smoking 4 years ago and yes it was hard but i did it. I seriously save so much extra money and i feel a lot better.
STOP DRINKING SODAS ALCOHOL AND ENERGY DRINKS- Cutting out these unwanted calories and pocket drainers. I have switched over to just coffee and caffeine pills. Caffeine pills can be purchased at Walmart for under $5 for a bottle of 50 pills depending on the brand.
Stop Shopping Online- Stop online shopping because you are bored, pick up a book or go out and do some yard work!
Where To Save
Make Your Own Items- We love window shopping and then making our own for half the price! Make sure its cheaper to make your own and find online store coupons before you go!
Do Your Own Home Repairs- You Tube and Pinterest are fantastic for home repairs. You can find out how to do almost any type of repairs now days online. Check it out and see if its worth it to you for your time and effort. Don’t be afraid to get quotes and be sure to price out your supplies.
Eat Left Overs For Lunch- Save money on lunch by taking your own, also if you are looking to loose some extra weight think about splitting your normal dinner in half. Then take that extra half to work for lunch. Cutting down portion sizes and daily exercise will help shed unwanted pounds!
Save Your Tax Returns– I like to buy something for each of us and then stash the rest in savings for a rainy day or family trips.
Make Meals At Home- No need to spend $28.00 on four meals when you can make an ever better meal at home for cheaper!
Have A Date Night? Make them dinner and rent a movie from the Library! Want to see their real true colors? Borrow a competitive board game like Monopoly! Lol, that game brings out the worst in everyone!
Take Advantage Of Your Kids Being Out Of School! This is free labor, put those kids to work! Teach them how to plant flowers, paint and how to do yard work. This will help out and get them out of the house.
Do you have any additional ways of saving money? Let us know what you do to cut your bills down. With everyone’s help, maybe we can all learn from each other and help out at least one person during this very hard time!
My Budget Family 