The First 10 Things To Cut From Your Budget

My partner and I are frugal my nature and by necessity. When friends complain about their finances, I gladly offer suggestions. The biggest push-back I get when I talk about cutting costs, boosting income, and saving money is that it’s hard. Many people associate the the word “budget” with sacrifices and suffering. But that’s simply not true.

The point of budgeting is not to deprive you of life’s joy. Rather, it’s an opportunity to identify your priorities and curate objects and activities that make you happy. You know what you value and what you can cut better than anyone else. Thus, budgeting is a highly personalized task.

The cost of everyday goods is on the rise. Housing, groceries, and gas prices are outpacing wage increases. With a little less in our wallets each month, this is a good time to think about what we value and where we can cut back.

The First 10 Things To Cut From Your Budget

1. Alcohol – Alcohol is expensive, may lead to poor decisions, and hangover can ruin an otherwise perfectly good day. Consider going cold turkey or limiting drinking to social occasions.
2. Clothing – Clothing and accessories can be huge sinkhole, especially with any social pressure to follow trends. Contrary to popular belief, most people aren’t paying attention to what you wear or how often you repeat an outfit.
3. Beauty Products – There is always some magical new facial serum or hair product that promises to change your life. The reality is that few will live up to the hype. Use what you have on hand, skip the monthly manicure, or try cutting your own hair.
4. Luxury and Convenience Groceries – We pay a premium on pre-made meals, protein bars, and low-nutrient snacks. The same goes for fancy cheeses, expensive cuts of meat, and bottled water. If finances are tight, stick to the basics–fresh produce, poultry, white fish, and spices.
5. Eating Out – Most fast food meals are around $10 and low-end restaurants are $20 per meal. Healthy meals can be had at home for under $5 per serving, so eating out is a great money saver.
6. Paper Towels – Years ago, I bought a huge pack of white rags from Costco and placed a secondary trash can in the kitchen. I still use paper towels for grease, but the rags are used for everything else and then thrown in the laundry.
7. Entertainment – Consider cutting out movie theaters, bowling, and visits to the zoo. These activities easily cost $20-$50 per person for just a few hours of fun. Instead, brainstorm free activities, such as visits to the park, board games, potluck parties, or working on crafts at home.
8. New Technology – Most of us don’t need the newest phone, laptop, gaming PC, video game console, fitness tracker, or workout machine. Often times, what we have is good enough. Electronics are expensive and patience is a virtue.
9. Cable TV and Streaming Services – I’ve never had cable or streaming services, but my life has been just fine without Sunday football, Netflix, and Spotify. There are plenty of free forms of entertainment, such as outdoor activities or renting media from the library.
10. Books – I love books and, at one point, owned over a thousand. Now, I borrow books from friends, family, and the library. If no one has it, I’ll choose another book to read.

Your list may be different than mine but, as you can see, the easiest things for me to give up have been food, activities, and consumer goods. On the other hand, I have no problem spending money on organic produce, supplements, clean household products, and quality products with a lifetime warranty.

With the current level of inflation, it’s a great opportunity for each of us to assess where we are spending and what our priorities are, and then align to two.

What items would you include on you “”first to cut” list? Would any of my suggestions be challenging for you?