It’s not something you’re imagining, everything is more expensive this summer than it ever has been before. If you feel like your tight budget is careening out of control, it may be time for a midyear reset. Rather than letting things spiral and put you further behind, press pause, observe your current spending, perhaps reevaluate things, and then set a goal or two for the future. But like many, you may feel a bit overwhelmed or even scared to begin, so here are a few simple steps to take so you can create a bit of margin.
Reconcile Your Spending
For some of us, the most tempting thing to do would be to put our heads in the sand and keep functioning like we’ve always functioned, hoping something will magically change. Even if prices begin to drop a little, it’s going to take a while for a course correction. You can’t ignore your finances for that long. So if it’s been awhile since you’ve budgeted or even if you’ve never done it before, now is the time. I use Quicken to forecast our bills and spending, typically six months at a time. You can use a spreadsheet (Google Docs are great), these FREE printable Budget Forms, apps, or even a notebook. Just begin tracking your spending now and daily checking in with your finances.
Cancel Something ASAP
Odds are good that there’s something in your budget you’re not using at all. It may be a gym membership, a streaming service, or a subscription. When evaluating your spending, choose one thing to nix and take the steps to cancel it or if possible renegotiate your rate today. While it won’t fix all of your problems, it will help relieve a little pressure and create some margin. Just be sure to reallocate those dollars to other areas of spending (hello gas budget) or goals and don’t just absorb them to disappear into the black hole of spending.
Get Back to Cash at the Grocery Store
Groceries are pricier. And that may mean to stay on budget you’re going to need to set some boundaries. You will need to watch what you’re putting in your cart and keep a running total. If you have kids, allowing them to add things up as you go can be a great teaching tool and way to stay on track. You may also want to only spend cash when you’re at the store. Using plastic – even when it’s a debit card tied to your checking account – always results in going over budget. It’s just too easy. You might even buy something small and get cash back before you begin shopping to make things more convenient. Find more ideas to save at the grocery store here:
- 7 Mistakes You Are Making at the Grocery Store
- The Grocery Store Apps You NEED on Your Phone!
- 7 Grocery Store Secrets to Save More Money
Look for Coupons (for everything)
In the same way, if you’ve fallen out of the habit of looking for coupons, get back at it. The world of couponing has greatly changed over the last decade but there are still plenty of coupons out there. Just yesterday, I got a $10/$10 from JC Penney in the mail. I look for offers like these to come back as consumers decrease their spending. Whether it’s the local amusement offers, clothing, grocery store apps, if there’s a way to save even a few dimes on it, you should be seeking it out right now. Don’t skip over scanning items in your cart to look for coupons at places like Meijer, Kroger, or Target. It’s free money and we can all use whatever we can find right now.
- 7 Do’s and Don’ts of Using Coupons
- Financial Decluttering Day 5: Organize Your Coupons
- The Best Digital Coupon Programs
Adjust Your Budget
What I budgeted for gasoline for our entire family last summer basically won’t fill up one tank right now. Ugh. While a gas tax holiday may take some of the edge off, it’s not going to completely revert to where things were last June. Unfortunately, you’re going to need to aim high and then if you come in under budget, use those monies in other ways (pay off debt, use at the grocery store, put toward a Christmas budget, etc.). I’m already bracing for an increase in our budget bill from the gas company, too. Some prices may have been artificially low for a while, too. As much as it hurts, you may need to adjust your expectations.
- 7 Beginner Ideas for a Better Budget
- Financial Decluttering Day 26: Declutter Your Budget
- How to Eat Healthy on a Budget this Summer
Think Ahead
It’s time to look ahead to the end of the year now and think through all of the expenses on the horizon – Back to School, fall holidays like Halloween and Thanksgiving, and eventually Christmas. Fall break trips, license plates, and biannual insurance payments fall into this category for us, too. From dentist appointments to extracurriculars for kids, you probably know what’s coming at you in the months ahead. Look at your calendar and your budget at the same time to help predict non-monthly expenses. This is why I love looking at a budget at least six months at a time. While not all of our income is predictable, these expenses are known.
Avoid Spending Traps
I feel like everyone knows at least a few of their weaknesses. Maybe you spend too much when you go to that one store. Or perhaps an email from a particular vendor pulls you in every time. While you can’t control the price at the pump or the increase on your favorite foods in the aisles, you can begin to notice what triggers you to spend money you don’t have or that could be used for other purposes. It’s time to get back to making your own coffee and smoothies. And it may be time to unsubscribe from some emails, too. Let’s buckle down together so we don’t get lost in the same unhealthy patterns of spending.
- 10 Simple Hacks to Save Money Every Day
- Why You Keep Wasting Money Online
- 9 Costs to Cut IMMEDIATELY for Healthier Finances
Take a deep breath. I know all of this seems crazy and out of control. But the fact of the matter is that over time, the economy has always ebbed and flowed and traveled choppy waters. There will be brighter days ahead as things adjust to world events. Controlling what we can control helps us all take back the reins in our finances. Rather than throwing our hands up in the air or burying our heads in the sand, let’s be intentional and focused on what we can do in the here and now. It may not be fun or easy, but it is possible and worthwhile.
My book is now available: Slaying the Debt Dragon: How One Family Conquered Their Money Monster and Found an Inspired Happily Ever After. You can also check out The Debt Free Devotional on Kindle.
This post contains an affiliate link. That means when you get a great deal, learn about a way to save, or maybe even something for free, I may end up making a small commission. All prices are subject to change.