About this episode
Simplified Explanation: What are your needs in life? Housing, utilities, food, and transportation. These are the essentials. We have already gone over fixed and variable rate expenses. Now, for those things that are essential, here are ways to lower how much you spend each month (on things other than your debt).
Real Life: Now, what happens when you have so many expenses that what goes into your wallet is the same amount as what leaves your wallet, or restated, when your expenses are just as much - or more - than your income? What needs to happen? This is when a purge is needed. Here are some ways to purge your spending and bring down your expenses.
Create a shopping list and stick to it – All grocery stores are designed to make you pay more. Everything from where the necessities are positioned in the grocery store, to what is on the shelf at kid or adult eye levels. Make a list at home of your necessities, and even your wants. Then go to the store, and strive to only buy what’s on your list. Even if you have an impulse to buy something more, don’t. Try this out a few times in a row, and you will begin to break the habit of “must-have” retail. Or, even more effective, make your list and order it online, and pick it up outside the store, so you aren’t driven to buy more.
Use coupons, discounts, and rebates – If you are going to stores like Michaels, grab their coupon online. There is an active 20-40% discount on everything they sell, so don’t forget to look it up at home, or on your phone while you are in line. Though coupons are not as common these days, there are usually discounts online for most products to get you to try their brand. But, be sure to compare the discounted price to the store brand price. Pick the less expensive one. If you are on the computer, install a program like Honey, which finds active discount codes to try (which they found online).
Shop Online – You can buy nearly everything on your list on Amazon or a grocery store, and they will either deliver it to your house, or pop it in your back seat (when you order beforehand and pick it up from the store). Use online discounts as well. There are normally no differences in price when you are buying in the store or online, if you go to the store’s website directly. Be careful of services like Instacart, whose prices are actually higher than the prices in the store, or on the store’s online ordering system. You may want to compare the pricing though. Since the online price is the same around the U.S. (on Amazon, for example), if your groceries cost less than somewhere in CA, you will most likely pay less in your local store. If you buy online, you can always price compare, or use the discount codes provided online.
Buy in Bulk – One big issue in overspending is constantly buying smaller packages of groceries. Almost any grocery item is more expe
