You don’t need a financial expert to tell you that restaurant meals cost more than homemade food. That goes for takeout, delivery and work lunches, too, not just dinner dates.
“Cut back the amount of times you usually eat out,” recommends Christian Maldonado, founder of financial and accounting services company Fins ult. “Instead, focus on cooking at home for a few weeks after your return.”
Homemade meals also give you more control over your nutrition, letting you trim your waistline alongside your spending after an indulgent trip.
Restaurant meals aren’t the only discretionary item you can cut from your budget.
Maldonado urges consumers to look for small expenditures that often go unnoticed and slip through the cracks in their budgets. “Look to cut back on smaller expenses in general. These can add up to bigger savings to get back to where you need to be in your savings account.”
Examples include excursions to the coffee shop, clothes, accessories and personal items thrown into your cart at the grocery store. Spend a month holding back on these, and you may even discover that you don’t actually miss them and can avoid spending on them indefinitely.
Audit Your Subscriptions
Many people have no idea how much they actually spend each year on subscriptions.
These could include video streaming platforms, cable TV, a landline, music streaming services, high-speed home internet, mobile apps, recurring delivery services, digital tools for your computer or phone or countless other recurring costs.
Some of them you use every day and cherish. Others you’ve probably forgotten about entirely.
Go back over the last year and make a list of every subscription bill you’ve paid. Note that some charge monthly and others annually. Choose a few to keep and unsubscribe from the rest.
Get More Serious About That Promotion
“My favorite tactic is to find a way to make more money, which is something that I educate all of my clients on doing,” explains Maldonado.
“The main reason I advise my clients to focus on making more money is because making money is easier than saving money and usually takes less effort and time as well.”
If you’ve been slacking at work, consider stepping up and applying for a new position that pays better. That could mean a new job, a promotion with your current employer, or simply asking for a raise in your current position.
Remember, you don’t get what you deserve in life. You get what you negotiate.
Pick Up a Side Hustle
Getting a raise isn’t the only way to earn more money.
“If you’re looking to rebuild your savings or pay off your credit card balance quickly, one effective way is through a side gig,” says Ed Huang, side hustle and career expert at SideHustles.com .
Huang adds that the four most popular side hustles in the US are consulting, personal training, photography and Airbnb hosting.
Rent Out Your Home on Airbnb
A friend of mine found that if she rented the other bedroom/bathroom suite in her apartment for two long weekends each month, the revenue covered most of her monthly rent payment.
Alternatively, if you have friends or family you can crash with for a few nights at a time, you could rent your entire home on Airbnb. Before my cousin got married, her fiancé rented his home on Airbnb and simply crashed with her whenever someone booked it.
It helps to approach it as a side hustle, however, with systems in place for onboarding guests. The more organized and professional you make the experience, the more likely you are to score five-star reviews, more bookings, and higher rents.
Automate Savings & Credit Card Payments
Maldonado puts it succinctly: “Put a plan in place to save back up to where you were or pay down your credit card quickly.”
Don’t rely on self-discipline to spend less and then put whatever you didn’t spend into savings at the end of the month. Get proactive and schedule automated transfers to take place after every payday.
That could mean moving money from your checking account into your emergency savings account each payday or splitting your paycheck’s direct deposit. It could also mean scheduling automated payments toward your credit card balance each payday.
Get the money out of your checking account before you can spend it. If need be, lock your credit card away in a drawer until your balance is paid off, and only spend with cash or your debit card.
Get More Strategic in Planning Your Next Vacation
We’ve all made mistakes and overspent on travel. But don’t let it become a habit.
Richard Barrington, financial analyst for Credit Sesame , has seen far too many consumers rack up travel debt. “Borrowing money to take a trip is generally a bad idea. This is especially true if you already have a substantial amount of debt you are trying to pay down.”
Barrington advises planning trips that fit your budget. “Instead of taking a plane to an expensive resort, how about driving to a quiet spot for a little camping? Even if the idea of pitching a tent doesn’t appeal to you, there are options like cabins and glamping that are lower-cost alternatives than pricey hotels.
“If you’re not traveling with kids, why not wait until schools are back in session? Everybody rushes to travel during the summer, but if you don’t have to worry about an academic calendar, you might find cheaper rates if you travel at off-peak times of the year.”
Final Thoughts
The next time around, aim to travel debt-free.
“You might decide that it’s more appealing to hold off on travel until you’ve paid off your debt,” proposes Barrington. And prepaid beforehand, rather than leaving you weighed down with debt when you return home.
“Short-term experiences like travel should be saved up for in advance rather than paid for after the fact. That way you won’t be stuck with debt that lasts long after the trip is over. Plus, if you avoid having to borrow you can put more of your money towards the trip rather than towards paying interest.”
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