8 Basic Budget Changes That Can Save $400 a Month
The cost of living has reached an all-time high, and let’s face it: many of us are feeling the financial squeeze. From the cost of housing, utilities, groceries and more, costs have been up across the board since the onset of the COVID-19 pandemic.
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According to the Federal Reserve’s Report on the Economic Well-Being of U.S. Households, only 63% of U.S. adults could use cash or its equivalent to cover a $400 emergency expense and only 54% of U.S. adults had three months’ worth of emergency savings, as of 2023.
These statistics might scare you, and for good reason. If you find yourself fitting into either (or both) of these categories, you can take action to improve your finances.
Luckily, there are many ways to adjust your monthly budget to save an extra $400 a month.
Here are eight ways to budget and help you save a bunch of money each month, according to BuzzFeed:
1. Bring 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. Purchasing food out of the house every day, from fast food establishments, cafes, and the like, adds up fast and can strain your finances.
2. Don’t Spend Any Money on Clothes for a Year
It’s always nice to keep your wardrobe up to date on the latest fashion trends. But, it can also cost you a ton. Considering you probably have lots of clothes already, consider wearing what you have for a year without buying anything new (things you probably don’t actually need anyway).
3. Make Coffee at Home
Buying coffee out on your way to work, and maybe even again on your lunch break, adds up really quickly. Depending on where you live, cutting out coffee runs can potentially save you hundreds of dollars per month. Try making coffee at home to bring to work with you, and then use the coffee machine at the office during the day to save even more money.
4. Make Bread at Home with a Bread Machine
Constantly buying loaves of bread at the grocery store is another added expense. But, if you buy a compact bread machine and keep 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 smoke already, 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 dearly.
6. Don’t Drink Alcohol
Similarly to smoking cigarettes, drinking alcohol can be harmful to your health, if not consumed in moderation. Consider cutting back on drinks out with friends to save a bundle each month.
7. Only Buy Groceries on Sale
As with the increased cost of many everyday expenses, groceries are no exception. Try to take advantage of your grocery store’s sale items each week. If you stick to buying sale items only, you might have extra cash to stash 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 can probably do without.
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