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8 Basic Budgeting Changes That Can Save You $400 a Month
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O cost of living has reached an all-time high, and let’s be real: many of us are feeling the financial pinch. From the cost of housing, utilities, grocery stores and more, costs have increased since the start of the COVID-19 pandemic.
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According to Federal Reserve Report on the Economic Well-Being of U.S. HouseholdsOnly 63% of US adults could use cash or equivalent to cover a $400 emergency expense and only 54% of US adults had three months’ worth of emergency savings in 2023.
These statistics might scare you, and for good reason. If you fall into one of these categories (or both), you can take steps to improve your finances.
Fortunately, there are many ways to adjust your monthly budget to save an extra $400 per month.
Here are eight ways to budget and help you save a lot of money every month, according to BuzzFeed:
1. Take your food to work
If you work in person five days a week (or even just three days a week on a hybrid schedule), consider bringing all of your daily food from home. This includes breakfast, lunch, drinks and snacks. Buying food outside the home every day, in fast food establishments, cafes and the like, adds up quickly and can harm your finances.
2. Don’t spend money on clothes for a year
It’s always a good idea to keep your wardrobe up to date with the latest fashion trends. But it can also cost a ton. Considering you probably already have a lot of clothes, consider wearing what you have for a year without buying anything new (stuff you probably don’t need, anyway).
3. Make coffee at home
Buying coffee on the way to work, and maybe even again at lunch time, adds up very quickly. Depending on where you live, stopping coffee pickup could save you hundreds of dollars a month. Try making coffee at home to take to work and then use the office coffee machine throughout the day to save even more money.
4. Make bread at home with a bread maker
Constantly buying bread at the supermarket is another additional expense. But if you buy a compact bread maker and have basic ingredients like flour, dry yeast, and salt on hand, you can easily make bread at home for a small fraction of the cost.
5. Quit smoking
If you don’t already smoke, it’s probably not a good idea to start. It’s bad for your health and can be very costly. If you already smoke cigarettes, consider quitting. Your body and your wallet will thank you so much.
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6. Don’t drink alcohol
Just like smoking, drinking alcohol can be harmful to your health if not consumed in moderation. Consider cutting back on drinking with friends to save big each month.
7. Only buy groceries on sale
As with the rising cost of many daily expenses, groceries are no exception. Try to take advantage of your supermarket’s sale items every week. If you stick to only buying sale items, you may have extra money to put away at the end of each month.
8. Don’t compare yourself to others
Above all, try not to “keep up with the Joneses,” as they say. Comparing yourself to others can lead to overspending on things you would probably do without.
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This article originally appeared on GOBankingRates. with: 8 Basic Budgeting Changes That Can Save You $400 a Month