The No. 1 Expenditure Rachel Cruze Cuts To Save Money
Rachel Cruze says it’s important to understand the difference between wants and needs in your budget — there are always things you can cut when costs get tight.
In a video outlining expenses you might not miss, Cruze described the No. 1 expense she cuts from her budget when she needs to save money: shopping for new clothes.
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Cruze’s Top Budget Cut
According to Cruze, the No. 1 thing she cuts from her budget might surprise those who know her. That’s because she loves clothes shopping — it helps her reduce stress and feel better. However, she emphasizes that buying new clothes is a want, not a need.
In other words, Cruze isn’t telling her followers that they should give up luxury clothes. Her point is that it’s important to identify the expenditures you can live without, at least for a little while, when you need to save money.
Needs vs. Wants
One of the most important parts of making a budget is ensuring that it’s comfortable and sustainable. Everyone has “non-negotiables” in their budget: things they’ll set money aside for even if they’re not strictly necessary. For Cruze, that’s shopping for new clothes. For you, it might be something else, like travel or trying new restaurants.
However, those extra treats should be the first thing to go when you need to cut costs. Your budget can and should fluctuate with your needs. As food prices and other costs are going up, many people may feel pressure to save more, according to findings by the USDA’s Economic Research Service. Just know that the cuts you make are temporary, and you’ll be able to enjoy those special expenditures again once your budget is back on track.
Other Easy Budget Cuts
At the beginning of the vlog, Cruze discusses a list of items that can be easily cut from any budget. Here are a few highlights from that list, plus money-saving alternatives.
Gym Membership
If you’re dedicated to going to the gym, you might consider your gym membership a necessary expense. But if you only go every once in a while, consider cutting this cost from your monthly spending.
Instead of going to the gym, you can save money by exercising at home, going on walks or using a free workout app.
Warehouse Store Membership
Have a membership to Costco, Sam’s Club or another popular warehouse store? Those memberships can help you save money if you like to buy in bulk, but if you don’t use them regularly, they’re an unnecessary cost.
If you have multiple warehouse store memberships, consider limiting yourself to just one. You can also try membership-free alternatives like Grocery Outlet or WinCo.
Cable TV
The number of American households with a cable TV subscription goes down every year. Many people find that streaming services offer all the shows they need at a more affordable price. If you want access to live TV for sports or other events, try a live TV streaming service.
Similarly, take a look at the streaming services you currently pay for. If you don’t use all of them, cancel the subscriptions you won’t miss.
Bottled Water
Bottled water isn’t just harmful to the environment — it’s also bad for your budget. Instead of buying water while you’re out and about, keep a reusable bottle in your car or bag. Refill it whenever you find a water fountain or clean tap.
Food Delivery
Delivery apps might be convenient, but they’re a huge drain on your budget. DoorDash, Uber Eats and other delivery apps charge varying fees that can double the price of your food.
Cooking at home is generally cheaper than ordering food. But if you want takeout, try ordering from nearby restaurants and picking up your meal yourself. You can even grab food on your way home from work.
Negotiating Your Non-Negotiables
Some budget cuts, like those listed above, might not make much of a difference in your life — but others can feel like more of a sacrifice. Cruze admits that it’s difficult for her to slash her shopping budget even when it’s necessary.
If you’re struggling to reduce your “non-negotiable” expenses, try looking for budget-friendly alternatives. For example, try thrifting instead of buying brand-new clothes or use frugal hacks to dine out without overspending. Remember that you’re making these sacrifices now so you can afford the lifestyle you want in the future.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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