You’ve likely noticed that inflation has taken a big bite out of your income over the past couple of years. Unless your income is keeping pace, you’re probably getting a little squeezed. Hopefully this post can offer some practical tips.
There are two ways to gain disposable income: cutting expenses and increasing income. You can only cut expenses so much. If you’re getting squeezed and there’s nothing left to cut, the only other option is to bring in more income. While getting a higher-paying job or a raise at your current one would be great, sometimes that’s not possible. In those cases, adding a revenue stream or two may be the way to go. Do you have a hobby or talent, or simply extra time, that you can use to bring in some extra cash (babysitting, freelance yard work, having your kids pet-sit and contribute to the household out-to-eat or go-to-the-movies plan)?
I feel obligated to say that avoiding a credit card balance is one of the best things you can do to keep your debt under control, but I also acknowledge that it’s tougher and tougher for people to sock money away for a rainy day when it’s been raining so much for so long, and they’ve come to rely on credit cards instead of savings for a backup/emergency fund. By all means, pay off your monthly balance in full, but when you can’t do that, here are some other hacks for saving some money.
Kids grow fast. Like, real fast. Shoes and clothes don’t fit them for nearly the same length of time as they fit adults. When I’m doing yard work I wear jeans I wore 20 years ago. It’s not because I’m super fit, it’s because I don’t want to buy a new wardrobe. With such high turnover rates for kids’ clothes, thrift shops can save you a ton of money. Some things are better bought new, sure, but if they’re only going to be wearing a given pair of pants less than a year, they don’t need to be designer or top notch. Larger thrift shops have more options, so if you live out in the country, you may have better results heading to thrift shops in more populated areas. Just because other people pay for rapidly growing kids to have nice stuff doesn’t mean you have to pay the same prices; many shops will randomly have name-brand items. If the kids whine about not buying brand new, let them pitch in or pay the difference between what they want and what you can get it for at the thrift store. It’s easy to whine when you’re using other people’s money, but the tune often changes when you’re the one footing the bills.
Food is a big expense. The economy and supply chain have made for some anomalies where in some cases, it’s cheaper to buy a meal prepared at a restaurant than it is to buy the ingredients and prepare them yourself. This is not the norm and it probably won’t stick around for long. At any rate, if you’re pinching pennies, you should probably avoid dining in at a restaurant and opt for takeout instead. Dining in means you’re paying for drinks and paying more for a tip than if you call a restaurant to place an order, travel there, pick up the food, and then travel wherever you’re going to eat it (remind me again why people tip when they do all the work?).
If you regularly stop for hot drinks that have some kind of flavoring, foam, or shots of something in them, you forfeit the right to complain about not having enough money. Coffee, cream, and sugar. Want a treat? Try flavored creamer.
A lot of times we start subscribing to things and after awhile we stop thinking about whether they’re worth the price. For example, unless you’re some kind of super-user, you probably don’t need a phone plan with unlimited data. If all you need is talk and text with a moderate amount of data, you can probably ditch the major carriers and go with small companies that have the same coverage but plans that better fit your needs. For entertainment, do you really need all those streaming services? Do you still pay for cable TV? If all you really want are major networks, consider buying a digital antenna and getting TV for free. Admittedly, you get what you pay for, but if you’re in an area with decent signal strength and you buy a respectable antenna, you can pick up a lot of channels. Check out https://www.fcc.gov/media/engineering/dtvmaps to see what networks you can pick up in your area. And an individual channel often has multiple sub-channels within it, so if a particular channel comes in well, there are probably a few different shows playing on the channels that are affiliated with it. I personally get channels with more westerns, Spanish telenovelas, episodes of Walker Texas Ranger, Columbo, and old game shows than I know what to do with, but I’m also a fan of older, less stressful shows. If a digital antenna’s not really your thing, but you have good internet speed, pick up a Roku device. Different shows rotate through the available channels, you can usually get some live news, and the commercial breaks come with countdown timers. Still not seeing something you like? Check out your local library for shows and movies on DVD. We don’t normally even start watching a new show unless it’s finished its run on TV. There’s a lot of cheap or free entertainment out there, so take a look at your subscriptions and make sure you’re only paying for stuff that’s worth it for you.
Walmart is both a blessing and a curse. On one hand, it’s cheap and has lots of options. On the other hand, it’s very hard to walk out of the store with only the things you intended to pick up when you walked in. What you saved by going to the store got more than chewed up by picking up all the add-ons you tossed in the cart while walking around the store. Here are a couple of ideas to help manage costs. Don’t use credit/debit cards to pay for purchases; only use cash. When we use credit or debit cards, it makes it harder to appreciate the value of the money you’re parting company with. When you use cash, it makes you much more aware that money is leaving your possession, and it makes you think harder about whether a particular purchase is worth the price. Alternatively, place a Walmart order online. Shipping is free once your purchases total a certain amount, and as long as you’re not adding things to the cart just for the sake of hitting that mark, you can be more choosy about what items you’re willing to purchase to reach that shipping minimum. If you aren’t willing to wait for the shipment to arrive through the mail, use the “store pickup” option. Employees will gather the items you pay for and put them in a locker for you to retrieve. You might have to go into the building, but you don’t have to go beyond the registers. If you don’t go beyond the registers, your chances of escaping without making impulse buys go way up. Now you just have to dodge the Scouts selling cookies or popcorn outside the door.
Finally, let’s address the issue of tithing. Tithing, or giving 10% of your income to the church body you attend, is expected even when money is tight. God knows when it’s simply impossible for you to give that much, but He also knows when you’re milking the situation a little bit. Do your best to build tithing into your budget. You’re welcome to donate money to other charities, of course, but that’s supposed to be after you’ve given your 10% to the church you attend. Ten percent sounds like a lot, and it sure can be, especially if you don’t currently give anything. I’d offer that you live your life of following Christ in expectation that He’ll do bigger things through you than He’s doing right now. If that’s the case, this current stage of your life is a prelude to things that are yet to come. Be faithful with the smaller things, and He’ll entrust bigger things to you in the future. Tough stuff, I know. If you’re way under that 10% goal, start out by consistently doing better than you are right now, and keep working toward that goal.
There are lots of other tips, but I’ve already taken up a lot of space. Who else has suggestions? Please leave a recommendation in a comment.