Money is tight for many families right now, and that’s pushing some to take a harder look at their monthly budgets.<\/p>\n
The truth is, many of us are wasting money without realizing it. The key is pinpointing where it’s happening. Consumer savings expert Andrea Woroch said the first step is simply knowing where your money is going.<\/p>\n
“When it comes to those categories where expenses fluctuate, like gas or groceries or entertainment, these are the ones where consumers and families kind of lose track on how much they’re spending,” Woroch said.<\/p>\n
WATCH: Learn how to track and change your spending habits <\/p>\n
How you’re wasting money and what to do about it<\/p>\n
Start by writing down all your expenses. Once you have a clear picture of your spending, it becomes much easier to find places to cut back \u2014 but don’t try to tackle every category at once. Woroch recommends focusing on one area per month to avoid burnout.<\/p>\n
Where to start: Track every expense<\/p>\n
Before you can cut back, you need to know where your money is actually going. Woroch recommends:<\/p>\n
Writing down all your expenses\u00a0to see the full pictureUsing 3-month averages\u00a0or last year’s year-end statements to spot patternsPaying close attention to fluctuating categories\u00a0like gas, entertainment, and kids’ activities \u2014 these are where overspending is easiest to miss<\/p>\n
Budgeting apps can make this process much easier. Woroch recommends<\/p>\n
Rocket MoneyYou Need a Budget (YNAB)<\/p>\n
Both link to your accounts and break down spending by category, so you can quickly see where your money is going each month.<\/p>\n
Groceries: One of the biggest budget drains<\/p>\n
Groceries top the list of categories where families overspend \u2014 and food waste is a major reason why.<\/p>\n
Americans waste about\u00a0$1,200 a year in produce\u00a0aloneRoughly\u00a040% of purchased food\u00a0is thrown away due to spoilage or expiration<\/p>\n
“I would say groceries is one of those top categories that families overspend on without realizing,” Woroch said.<\/p>\n
Meal planning is one of the most effective ways to fight back.<\/p>\n
“Meal planning is going to allow you to shop with a plan, with a purpose, and cut back on those extra purchases,” Woroch said.<\/p>\n
How to shop smarter:<\/p>\n
Plan meals once a week\u00a0before\u00a0you go to the storeBase recipes on what you\u00a0already have\u00a0at homeCreate\u00a0meal theme nights\u00a0like Taco Tuesday or Pizza Friday to simplify shopping and build family habitsUse\u00a0overlapping ingredients\u00a0across multiple meals to reduce wasteStick to your list\u00a0once you’re in the storeBe cautious with bulk buying\u00a0\u2014 while the per-unit price on produce or snacks may be lower, food can spoil before you use it, wiping out any savings<\/p>\n
Apps and tools to stretch your grocery budget:<\/p>\n
Cook List\u00a0\u2014 generates recipes from items already in your pantry or fridge and builds a “gap-only” shopping list so you only buy what you actually needGrocery store apps\u00a0\u2014 most major chains offer digital coupons through their appsFetch Rewards\u00a0\u2014 scan your receipts to earn points redeemable as gift cards at Amazon, Target, Walmart and more
\n Subscriptions: The silent budget killer<\/p>\n
Subscription services are another place where costs can quietly add up \u2014 sometimes without you even knowing you’re paying for them.<\/p>\n
“Maybe it was auto-enrollment after a trial, and they don’t even know they’re paying for it,” Woroch said. “My kids actually signed up for Amazon Music Unlimited because they didn’t have the control set on our Alexa device. And I was paying an extra 7 or 8 bucks a month for six months without realizing it.”<\/p>\n
How to take control of subscriptions:<\/p>\n
Check your Amazon account\u00a0regularly for ongoing charges you may have forgotten aboutMonitor kids’ devices\u00a0to prevent accidental sign-upsDon’t cancel right away\u00a0\u2014 call first and ask about retention offers. When Woroch tried to cancel HBO Max, the service dropped her rate from\u00a0$12.99 to $2.99 a month\u00a0for three months just for askingUse a bill negotiation service\u00a0\u2014 apps like\u00a0Bill Shark\u00a0and\u00a0TRIM\u00a0can identify unused subscriptions and negotiate costs on your behalf
\n Wireless plans: Are you paying for more than you use?<\/p>\n
Most people with unlimited data plans only use about 15 gigabytes per month, thanks to free Wi-Fi at home, work and public spaces.<\/p>\n
Switch to a plan that matches your actual usage\u00a0\u2014 you may be paying for data you never useFor families with kids:\u00a0consider pay-as-you-go options instead of adding children to a large unlimited family plan
\n Insurance: Rates that creep up over time<\/p>\n
Insurance is another area where costs rise gradually, often without people noticing.<\/p>\n
“You probably got a better rate when you first signed up, but they tend to go up year after year,” Woroch said.<\/p>\n
How to lower your insurance costs: <\/p>\n
Shop your rates every one to two years\u00a0to make sure you’re still getting a competitive priceBundle policies\u00a0\u2014 combining home and auto coverage with one provider often unlocks discountsRaise your deductible\u00a0if you have savings to cover it \u2014 a higher deductible typically means a lower premium
\n Monthly bills: Negotiate, then make your payments work for you<\/p>\n
When it comes to monthly bills, a quick phone call can go a long way.<\/p>\n
Always ask about current promotions\u00a0and reference competitor offersGive your current provider a chance to match\u00a0any deal before you switch<\/p>\n
And once you’ve negotiated your bills down, consider how you’re paying them.<\/p>\n
“There are some credit cards that will actually give you points or cash back when you use a card for utilities or various monthly bills,” Woroch said.<\/p>\n
A free tool to help you take control<\/p>\n