Spending More than Before: 5 Budget Categories to Trim Expenses

Amanda H. Christensen, AFC, Utah Money Moms Editor

You've probably noticed the increased cost of goods and services lately. I chatted about this recently on Instagram stories (are you following the fun on our Instagram account?!) I asked followers what budget categories and specific items in those categories have increased in cost lately. The response was overwhelmingly similar! Today I'm sharing the results along with my recommendations for how to counteract the increased costs. Keep reading!

I share these tips in a Studio 5 TV segment you can watch here.

Groceries. This category tops the list as the #1 category mentioned probably because it's so universal. Prices are up. Have you noticed? Fresh fruit, baking supplies, bacon (and most meats), soda, chips, dairy products, etc. Every grocery store is effected and so is my grocery bill. Here's what I'm doing about it:

• 1) Meal Plan around what's on sale at my local grocery store. I try to do this two weeks at a time to prevent frequent trips to the store. I use grocery pick up so I buy only exactly what's on my list. 2) Shop my pantry first. I'm always surprised by how much I already have on hand. I can make many meals with only a few items needed from the store when I take the time to see what's on hand. 3) Use leftovers. We're pretty good at this at my house but we could be better! Typically, if I cook meat on Sunday or Monday, we'll eat that meat again throughout the week on nachos, in quesadillas, or as an ingredient in a stir fry or soup.

​Gas. The cost to fill my tank continues to increase. So here's what I'm doing about it:

• 1) Plan trips and combine errands. In a given week I know where I have to drive to and what errands need running. If it takes me 20 minutes to get to the grocery store, dog groomer, library, etc. that's 40 minutes of total drive time. I'm trying to eliminate just one 40 minute block of driving in my week by combining errands and planning trips. 2) Get perks. Sign up for gas perks or use a credit card that gives you cash back on purchases. Even 2% cash back over the course of the year will fill my gas tank a couple times. 3) Use an app. I use "Gas Buddy" to check the price of gas in my area. It's super convenient and takes about 30 seconds to open the app and see where I can go to pay less for the type of gas I buy. 

​Building Materials and Renovations. This made Studio 5's list as many viewers responded saying they had been affected by rising costs. Supply and demand is the age old reason for the rest in costs in this category. Solutions? Clearly defining needs and wants is critical with these types of expenses. Ensure your needs are met and your top wants may have to be negotiated to avoid blowing the budget. Should you wait to do any building projects? Rising interest rates are going to come into play here soon. So the cost to borrow money will increase. Even a 1% increase can mean thousands of dollars over the life of your loan. Something to think about and plan for.

Subscription Services. Whether it's a streaming service for television or music, a monthly subscription box that gets delivered to your door, or a grocery delivery service, many of these types of services increased their prices at the first of the year. Here's what I'm doing about it:

• Finessing my monthly bills, cancelling unused subscriptions or switching to a lower tier subscription. 

Spontaneous, Unplanned Spending. Recent research shows Americans are spending just over $180 on spontaneous spending in a month. It's the $5 here, $8 there that add up over the course of the month. That $180 dollars would do a lot for my gas or grocery budget in a month! Here's what I'm doing about it: 

• Sticking to my monthly personal allowance and carrying that amount in cash in my wallet. When it's gone, it's gone. I can become disconnected from how much I'm actually spending when I just swipe the card or click "Checkout" in my Amazon cart. You know?

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