This post contains affiliates. The links don’t cost you anything extra but they do provide me a small commission if you use them.
Budget: Part One – Ways to Cut Spending
This is a two part series on fiances and budgeting. Part One is on Ways to Cut Spending. Part two will address ways to add income.
A few years ago, my husband and I went through Dave Ramsey’s Financial Peace University program. The focus of the program is to get out of debt and achieving financial peace no matter your circumstances.
The program focuses on knowing how much money you bring in and then creating a budget to live within your means while paying off debt. If you are spending more money than you bring in your problems are only going to get larger.
Proverbs 13:11 (NIV)Dishonest money dwindles away, but whoever gathers money little by little makes it grow.
I highly recommend the program as well as all of Dave Ramsey’s other books!
If you will live like no one else, later you can live like no one else.” – Dave Ramsey
Basically meaning, you may have to live more frugally now so that later in life you can afford things that others cannot. But it does require sacrifices now.
My husband and I have chosen to homeschool our children. He stays home with the kids (I know, he’s amazing, right?!) and I work full-time as a Christian mental health therapist. Let’s just say the money isn’t rolling in working for a non-profit Christian counseling center. I’m not complaining. I feel tremendously honored and blessed to be able to help others through their time of struggles and pain.
But this is the sacrifice we have chosen to make to follow the path we believe God has led us to.
And I know there are plenty of families that choose one-income homes.
Ways to Cut Spending
I’ve had many people in my office struggling with finances and not feeling like there is enough to go around. Together we will create a budget, write down how much they are bringing in, prioritize their bills, and then address their extra spending.
There are always ways to cut spending!
Start out with the most frivolous extras and work your way towards greater sacrifices, if necessary, given your income and goals.
Below are areas to eliminate and/or reduce to allocate your finances to paying off debt or saving.
Entertainment
- Vacations
- Concerts
- Sporting events
- Going to the movies
- Monthly mail subscription boxes
- Magazine subscriptions
- Hulu
- Netflix
- Cable/Satellite Television
- Smart phones
- Gym memberships
- Hobbies with membership fees
- Children’s extra-curricular activities
- Toys
Personal items/Clothing
- Manicures/pedicures
- Salon hair cuts
- Hair dye/highlights
- Massages
- Name brand clothing
- Amount of clothing/shoes
- Brand name makeup and toiletries
Food
- Going out to eat
- Getting coffee
- Name brand food
- Junk food/snacks
- Soda/sports drinks
- Expensive cuts of meat
- Fresh fruit during off-season
- Alcohol
- Cigarettes/Tobacco
Transportation
- New car
- Number of household vehicles
- Motorcycle
- Snowmobile/4-wheeler
What are other ways you and your family cut spending? Share in the comments below! I pray that this post helps you to cut spending and re-prioritize your finances to benefit you and your family for the future.
Budget Series
Part One – Ways to Cut Spending
God bless!
Melissa
I learned early on in life that you budget for your priorities. You can afford whatever is important to you. If that’s paying off your debts, you will make it happen. If it’s Netflix, you will be able to afford it. Because you do make choices to budget based on your priorities.
It really is amazing what you are able to pay off and/or buy when you shift priorities! Thank you for sharing your thoughts. God bless!
People don’t realize how much money they waste in their day to day lives. If they stop using a credit card and use cash, they will notice, and their bills will be way lower.
I agree. It is much easier to spend money when it is through a credit and debit card when you don’t literally see the money leaving your hands. Thank you for reading and sharing your thoughts. God bless!
This is very insightful. It truly is amazing what happens when you put your faith in God, set boundaries and stick to a budget. God will bless your life financially for sure. If more people did not live beyond their means, there would be so much less stress as well.
So true, Keisha. Many people don’t actually take the time to figure out their weekly/monthly income versus how much they are spending. Thank you for reading and sharing your thoughts. God bless!
My husband and I also went through Dave Ramsey’s book about a year ago. We have been working on the debt snowball and have paid off a few things! Thanks for sharing ways to cut money.
The debt snowball is such a great way to pay off debt. It can feel like it is taking forever until you are able to accumulate the money from past bills onto others. Thank you for reading and sharing your experiences. God bless!