Everyone knows they should probably be saving more money. And while it might seem savvy to skip the occasional impulse buy, don't be too quick to pat yourself on the back when you refrain from buying yet another pair of ripped blue jeans. In times like these â when the recession is here and a carton of eggs feels like an investment purchase â we have to step it up a bit more to actually pad our savings accounts.
For many, the reason they canât save money is theyâre too afraid to face their finances. We worry that weâll never be good savers and live in fear of our bank balances. Thereâs a culture of shame surrounding what âtheyâ label âstupidâ money decisions. Not to mention the constant anxiety about not saving enough. All this creates a negative feedback loop that inhibits people from learning about their money habits.
This shame is the prevailing narrative surrounding money advice. Far too many money experts are older white males â wagging their fingers at pesky Millennials and self-centered Gen Zers, making idiotic decisions and not buying houses.
Yet younger generations are saddled with outrageous debt. As inflation rates and housing markets rise â that outdated American dream of the Colonial house and picket fence becomes absolutely unattainable. So, when it feels like thereâs no goal in sight, itâs tempting to take the nihilistic approach and spend-spend-spend rather than save. Donât forget, these generations are coming of age in the âYOLOâ era.
In authors Emma Pattee and Stefanie O'Connellâs CNBC article âPersonal finance advice relies on shame; what if we tried empathy?â They say: âFrom the over-simplified math of David Bachâs âThe Latte Factor,â to Dave Ramseyâs condemnation of nearly all debt, to the mediaâs obsession with extreme frugality and early retirement, the message is clear: If youâre struggling financially, you only have yourself to blame. In this mythology, only once an individual takes full responsibility for their situation, will they be able to make the so-called right choices in order to achieve financial prosperity.â
You canât simply put on a Joe Rogan podcast and magically change your life. Letâs just get to the point and speak about the main thing keeping people down: capitalism. So until we get rid of that, inequality will persist and the small-minded powers that be will blame the people suffering from it and for it.
However, itâs not all revolution or Rogan. There is a middle ground. By overcoming your fears youâll be better equipped to take a peek at your finances and address the issues that are buried there. Rather than restricting yourself by a word like budget, try the term spending plan. It combines the thrill of spending with the intelligence of a plan. With this new term and ideology to hand, perhaps youâll be able to set aside your money to save.
A spending plan isnât intimidating â especially with the help of apps like Meet Cleo, which keep it real and keep you on track. By doing what a good friend would, the Meet Cleo finance app will help you to face the numbers and do something with them. You donât have to make a mortgage your goal, but socking the money away canât hurt.
Here are 6 ways you can shave down those numbers on your spreadsheet and cut costs:
Rent
No, I wonât be plugging the house hacking trend here â wannabe millionaire landlords exploiting the lack of affordable housing is not a fun investment strategy for me. However, rent is usually peopleâs biggest expense. If you can reduce this, it goes a long way to helping you save.
A lot of people donât know that you can negotiate your rent. Instead of meekly accepting the price offered, you can present your landlord with a figure that works better for you. In a competitive housing market, this will be less effective. But some buildings offer incentives like a few months free. See if you can snag one of these deals. If your lease is almost up, try to renegotiate your rent. It costs landlords a lot to move you out and identify a replacement tenant when it would be cheaper to keep you. Give it a try. What do you have to lose but a couple of hundred dollars shaved off your living expenses.
Groceries
After rent, food is our second-largest expense. Between groceries and eating out â weâll get to that â what we eat plays a huge factor in how we spend. While many people will tell you to head to Costco or Walmart to shop in bulk, take a breath and consider your shopping needs. Bigger isnât always better when you buy more than you can eat because you think youâre getting a deal. Itâs clear that bulk shopping isn't the answer for everyone. Shop smarter, not bigger. Go to the grocery store with a list and stick to it. To keep it interesting, maybe allow yourself one spontaneous buy, but trust me. Lists are law.
Eating Out
Like with grocery shopping, the key to curbing impulse shopping is allowing room in your spending plan for small indulgences. Allow for dinner out or delivery once or twice a week, then no more. That way, youâll eat all the weekly groceries and truly savor those meals out. Two birds, one stone.
You Guessed It ⌠The Latte
Joe Rogan and Co. will tell you that the daily Starbucks run is ruining your life. However, if thereâs room for it in your spending plan, go ahead and keep your Starbs if it really lifts your day. For some, taking a walk to their local coffee shop is all that kept them going during the pandemic â and even now. But if hitting your local cafe is a mindless habit that you donât value, sure, replace it with coffee at home. The key is intentionality, not punishment. Keep your small indulgences within the parameters of your spending plan.
Clothes
Do you have a wardrobe full of clothes but still feel like thereâs nothing you can wear? That means your clothes arenât following the rules of intentionality, as outlined above. Instead of hopping on microtrends and buying everything on the sale rack, take your time and consider how it will fit into your daily life before purchasing.
Subscriptions
Challenge to you right now: list everything you think youâre subscribed to right now. Then go through your credit card statements and itemize all the actual subscriptions. I guarantee youâll find some youâve totally forgotten about. Unsubscribe to them immediately. Too often, we forget what we signed up for and end up paying for it months or even years after the free trial is over. Then check through whatâs left. Do you need every single streaming service? Do you need every single app? Your screentime and your savings will thank you.