Budgeting tips: 8 ways to save money on essentials

Forbes Health surveyed 1,000 Americans to find out what their 2024 resolutions were and as you might guess at number one, with almost half of respondents, was the perennial plan to get physically fit. Of those asked in the survey though, the second most desired improvement people said they will embark on this year is shoring up their finances.

That shouldn’t come as much of a surprise after a bout of inflation which fortunately has come back to earth. But how can one go about improving their economic situation? There is always picking up a side hustle to bring in extra cash, but it also helps to get expenses under control.

Budgeting tips: 8 ways to save money on essentials

Getting a handle of what you are spending and setting up a budget can seem a daunting task especially when you feel that you can’t make ends meet. There is no one-size-fits-all answer for how to budget but one simple money-management guideline is the 50/30/20 rule.

The biggest portion of that budget rule is dedicated to necessities like shelter and putting food on the table. Speaking to GoBankRates middle-class Americans gave their tips for saving a dime or two.

Saving money on food

Food is the second biggest expense for US households, when the cost of eating out and groceries is combined, after housing. Two ways that you can save money, potentially hundreds a month, are eating out less and planning your meals in advance.

The cost of eating out soared in the wake of the pandemic as the inputs for restaurants increased due to disruptions which got passed onto diners. Bryan Clayton, CEO of GreenPal told GoBankingRates: “I cook at home more often than eating out. It’s healthier and way cheaper.”

Rising costs didn’t spare shoppers from spending more on groceries either. Nonetheless, even at the supermarket there are more than just pennies to be saved. “Meal planning and making large batches of items I can freeze has saved a lot versus eating out,” said Jack Thweatt, the founder of Called. He figures that his family saves as much as $300 a month.

And if you want really fresh food, think about growing your own. If done right, your fresh vegetables could be less than a fifth of what you’d spend at the store and something to keep the kids busy.

Maintenance

There is a saying that often goes unheeded: “A stitch in time, saves nine,” both practically and metaphorically. Keeping up with maintenance on you home and car can save you from major expenses down the road.

Clayton says that while there may be upfront costs with regular car maintenance, “it saves on more expensive repairs down the line.” When it comes to home maintenance, getting out the tool kit and getting your hands dirty is the way to go. “DIY home maintenance alone can save me around $100-$200 monthly,” he said.

Utilities

Sure you can take cold showers, it’ll wake you up in the morning when you realize the water heater went kaput. But being realistic trying to cut down on energy usage or using it wisely can add up and fast. Thweatt says the he saves money on electricity by air drying his clothes as well as running major appliances at night “to take advantage of off-peak rates.”

Cutting back on essential non-essentials

Nearly two thirds of Americans consider owning a car a necessity according to a 2019 survey by The Zebra, an insurance comparison site. However, if possible, using public transport or other modes of getting around and owning fewer cars can reduce your expenses says Thweatt.

“Our family owns just one car that’s paid off. We bike or walk for local trips when we can. Public transit passes also save versus driving individually,” he said.

Many of us could not live without our smartphones, but are you really using all that you are paying for? Taking a look at your contract you have with your service provider you may be able to save a bit. As well, is getting that latest model really necessary? Perhaps your current phone, or a cheaper one, can keep you connected just fine.

And then there is cable and streaming services. Many would be loath to get rid of their ability to cuddle up on the sofa and take in one of the latest shows everyone at work, school or wherever it may be is talking about. However, do you need all of them?

Looking at it another way, you can also save money while enriching your communication skills at the same time by getting your friends and colleagues to tell you all about that hit series. Then you’ll have time to curl up with a good book, sit down to put together a puzzle or play a round of cards or a board game with your family and friends.