Cutting Costs, Boosting Savings: Your Ultimate Budget Makeover

The cost of living has been steadily increasing of late and unfortunately, all too many of us aren’t seeing an increase in pay to help offset inflation. As such, these days it can be a little tricky to keep a proper savings account.

Even some people who have switched to low-interest credit cards or are making a little extra side cash with day trading are finding that it isn’t enough to keep their budget in line. If this sounds like you or you just need some tips for boosting your savings, we’ve got a few tips for you today.

Do You Need To Move?

When it comes to savings and tax advice for professionals and novices alike, one of the biggest tips is to not let yourself get into a “house-poor” situation. This simply means ensuring that too large of a portion of your income isn’t going toward housing expenses because it can put a strain on your finances and limit your ability to meet your other money goals.

While securing a decent shelter is crucial, it’s not financially prudent to spend a hefty amount of your take-home pay on housing. A wise approach would be to ensure that no more than 25% of your income is allocated to cover your housing expenses, including your rent or mortgage, HOA fees, taxes, insurance, and PMI. Leveraging tools like a DSCR loan calculator can assist in financial planning, turning your home from a potential financial burden into a blessing.

Use Reusable Items

Instead of continuously purchasing paper towels, sandwich bags, and single-use water bottles, make a switch to reusable alternatives. You’ll be surprised how much using those hand towels lying forgotten in your drawer or cabinet instead of fresh paper towel sheets for each spillage can save you money. This simple shift not only decreases your shopping trips (and waste disposal trips) but also positively impacts your monthly budget over time. A monthly budgeting tool can help you visualize these savings, demonstrating how small changes can accumulate to significant amounts.

Review Your Apps

There are apps for everything these days. From paying for EV charging to buying a home in another state or country, all of those shopping apps could be causing you to spend more money than you should.  If you’re an avid online shopper, be sure to review your app usage and set a limit for the number of new shopping apps you download. Unsubscribing from store emails (which tempt us with sales and discounts) is also highly recommended.

Think Long-Term

Just like you did when you stored your crypto key, one of the best ways to boost savings is to think long-term. Consider buying items in bulk when you’re buying something you know will be needed for a long time. For example, if your child is in school or about to begin school, instead of continuously purchasing items like pens and notebooks every couple of weeks, buy enough to last them the entire year while they’re on sale.

Make Necessary Cuts

Sometimes, budgeting requires taking action that may seem tough or even drastic. However, any frugal advice will tell you that cutting certain expenses is necessary to boost your savings. For example, while having a car may seem like a necessity, it’s quite the opposite in many urban areas where public transport is readily available and cheaper. Alternatively, if you’re not able to cut out transportation costs completely, downsizing your vehicle or switching to public transport for your daily commute can still be a significant money saver in the long run.

Conclusion

By implementing some of these budget makeover tips, you’ll find yourself with more wiggle room in your monthly finances and an increased potential for savings. Remember, small changes can add up over time, so don’t get discouraged if you don’t see immediate results.