9 Ways to Find Extra Money in Your Budget to Kick Off the New Year
With the holidays in the rearview mirror, you may be feeling that your November and December spending went into overdrive. The gift-giving, increased consumption, and indulgence of the holidays are baked into our culture and there’s no sense in feeling guilty about participating. However, the New Year is the perfect opportunity to get back on track with healthy spending habits.
One of my favorite exercises at the beginning of a New Year is sitting down to reflect and set informed financial goals for my business and personal life. From there, I plan out clearly defined action steps to reach my new goals. This month, I invite you to join me by analyzing your current spending and figuring out how to find extra money in your budget to reach this year’s goals.
9 Tips to Find Extra Money in Your Budget
As 2022 approaches, take this time to slow down, strip away the excess, and get back to more conscientious spending. If money was a little tight toward the end of the year, let’s find some extra money in your budget and streamline your spending to kick off the year ahead.
1. Plan and Prep Meals in Advance
There are multiple benefits to making a habit of meal planning and food prep. Your budget and your blood sugar levels will thank you for it. Sitting down to decide exactly what you’ll eat for the week and preparing as much of your food ahead of time can save you from costly, last-minute runs to the drive-thru or the grocery store.
It’s shocking how much food can go to waste when you haven’t planned your meals ahead of time. Building a meal plan for the week before going to the grocery store means you can plan to purchase exactly what you need and nothing more. (Say goodbye to throwing out uneaten fruits, veggies, dairy, and more!) Eliminating unnecessary food waste will surely result in extra money in your budget.
2. Cut Down Grocery Costs
Writing a grocery list will be a breeze with a brand new meal plan in hand, especially if you plan meals that use some of the same ingredients. A grocery list will help keep you focused when you’re walking the aisles and prevent you from haphazardly selecting whatever looks good.
If you’re someone who has a tendency to throw extra items in the cart as you go, look into ordering online for pickup. Several major grocery retailers will now do your shopping for you and bring your groceries out to your car. All you have to do is build your order on the grocery store website and select a time for pick up. This option is a double winner: you save time and money.
The coupon craze of the early 2000s has dwindled, but coupons are most definitely still around and are worth taking the time to find. Digital and print options are available for several large retailers. If you really want to cut costs, build your weekly meal prep plan around this week’s grocery deals! Download your local grocery store app to easily find weekly deals.
3. Swap Out Name Brands For Generic
When it comes to day-to-day products, ditch the name brands and go with generic options. Household goods like cleaning supplies as well as school supplies serve a utilitarian purpose. They don’t need the extra bells and whistles that usually cost extra dollars.
Discount stores like The Dollar Store carry most household items at a fraction of the price you pay at a big box store. Try out a dollar store for a month to see if you even notice a difference in the products you’re buying. If you’re running both a household and a business, dollar stores can be a good place to shop for office supplies as well.
4. If You Must Eat Out, Pick The Right Restaurant
It’s challenging to eliminate eating out altogether, but restaurant meals are expensive. If you can completely eliminate dining out from your budget for a month to see how much extra money you find, by all means, go for it. But I’m a working mom, so I understand that cutting out restaurant meals entirely isn’t realistic for many of us.
If meeting colleagues after work once a week, date night, or a quick family dinner isn’t something you’re reasonably able to sacrifice, then choosing the right place can still save you some money. Find the best happy hours in your area and suggest those when your girlfriends are looking to get together to catch up. Half-price appetizers or free kid's meal specials can give you a budget-friendly option while still allowing you to enjoy the easy clean-up of eating out.
5. Audit Daily Habits
There’s plenty of debate among finance gurus about cutting out the latte’s to save money, but I say it depends on the gravity of your habit. For instance, if you stop every day on your way to work for a Venti Honey Oat Milk Latte, that seemingly harmless habit could cost you over $140 over the span of a month.
You may be able to find extra money in your budget with an easy compromise. Simply making coffee at home two or three days a week could be an easy sacrifice to make without requiring you to give up your favorite drink completely!
6. Cancel or Freeze Monthly Subscriptions
Monthly subscriptions for streaming services, product boxes, or memberships built around common interests (like crafting groups) can really add up. Review your budget to see just how many subscription services you’ve signed up. Try canceling one or two of these subscriptions in January (or at least put them on hold) to see how much extra money you find in your budget as a result.
7. Thrift Store Clothes
Thrift shopping isn’t what it used to be. The stigma associated with buying second-hand items has dissipated as trends towards vintage, DIY, and sustainable buying have become more popular. You can even make thrift shopping a fun scavenger hunt.
Last week, I took my kids to our local thrift store and we had a contest to see who could put together the best outfit. They loved the challenge and I was thrilled when I was able to buy them each new (to them) outfits for school that only cost me $30.
Online options are great too. Websites like Thredup offer popular brands like Anthropologie, Zara, and Lululemon in good condition at a tenth of the cost.
8. Try Negotiating Some of Your Fixed Expenses
Revisit fixed expenses and make some phone calls to your providers. Cell phone bills, internet services, and car insurance are expenses where prices can be subject to change as companies offer new packages, plans, and bundles.
For example, if you’re driving less due to the pandemic, call to see if your auto insurance provider offers a pay-per-mile insurance plan. If they don’t, see if you can save money by switching to a company that does.
9. Use the Right Credit Cards
Using the right credit card for your purchases won’t necessarily help you find extra money in your budget, but it will help you get the most out of every dollar you spend. Choosing the best credit card will depend on your goals.
Whether it’s earning travel miles or cashback rewards, there are a lot of great credit cards that offer excellent perks. The trick to this is making sure that you pay the credit card in full every month so that you get the rewards without paying for it in interest.
Celebrate the Extra Money You’ve Found in Your Budget
For the entire month of January, take diligent notes on what you would have spent if you hadn’t utilized these tips. Exactly how much did you save by canceling your subscriptions? What was the cost savings from buying generic cleaning products or thrift store treasures instead of new, name-brand alternatives? Seeing the figures and celebrating your savings could be the motivation you need to make permanent changes to your future spending habits.
At Financial Fitness Coaching, we help our clients streamline their spending and build the best financial habits to support their long-term goals. To see how we can help you and your business email me at kristen@financialfitnesscoaching.com or simply schedule a free 20-minute Discovery Call on my calendar. Download even more tips for savings below!