Happy new year! I know we are all breathing a sigh of relief that 2020 is over. Despite the many challenges last year brought, hopefully some of the positives we can carry through to 2021 and beyond. Financially speaking, maybe some of these new habits have helped you get on track and cut some spending out of your budget…
- Working from home- besides the extra time you’re gaining without traveling to the office, you’re saving money on gas, clothing (who needs new wardrobes when no one will see it?), and maybe even food if you’re used to grabbing lunch in a drive-thru on your lunch break
- Making your own coffee! Skipping your Starbucks run on the way to work has probably padded your bank account plus you’ve learned that coffee the old fashioned way isn’t really that hard to make at home. (Side note- I am loving the DIY cold brew carafe I bought to make my own at home!)
- Exercising at home- maybe you don’t need that gym membership after all! With so many online resources and walks around the neighborhood, maybe you’ve found free ways to get in shape without a monthly expense.
- At-home entertainment- being at home has encouraged us to get creative with what we already have. Are you and your kids rediscovering your love of puzzles and board games? Maybe you’ve started a daily bike ride, or taken building forts to the next level with all of those empty Amazon boxes.
- Learning to cook- with a supply shortage and reduced trips to the store, maybe you’ve gotten creative with the ingredients you already have in your pantry. Sharpening your cooking skills might inspire you to skip the takeout and make a delicious meal at home instead.
- Choosing local weekend getaways - camping has become increasingly popular during the pandemic. Instead of spending money on a bigger trip, a short family getaway (or even camping in your backyard!) offers a fun experience, without the bigger price tag. My family was actually supposed to be on a cruise the week of Thanksgiving. While we were sad that it was cancelled, we saved a lot of money by taking a short drive and renting a house where we could still spend quality time together.
On the flip side, maybe you started with good intentions, but this pandemic has actually snuck MORE expenses into your budget without you even realizing it! Now is a great time to take a step back, and evaluate - are you spending money out of convenience or necessity? Here are some examples to think about:
- Have you signed up for every binge-watching service possible? Do you really need Netflix, Hulu, Disney+ AND Apple TV?
- UberEats, DoorDash, GrubHub, Postmates… on those nights you don’t feel like cooking, you are paying A LOT more for your meal by the time you’ve added in all of the fees. We all know that cooking meals at home is the best bang for our buck, so kick this convenience habit if you’ve gotten into a routine of delivery!
- Junk foods and alcohol. Are you eating out of boredom, and adding extra treats to your grocery order? Besides the obvious pounds we’re putting on, we’re probably stocking the pantry with more than we can realistically go through before it expires. Plan ahead, and buy only what you need.
- Online shopping - it’s easy to keep scrolling through ads and mindlessly clicking add to cart. Does the Amazon delivery driver show up at your doorstep every day and you can’t even remember what you ordered?
- Emotional spending- Break the mentality of “I deserve this.” It’s ok to reward yourself, but when you’re buying things you don’t need just to make yourself feel better, it’s time to hit the brakes! Especially with our kids we are prone to think they deserve extra presents for all they’ve been through.
This new year, take the opportunity to break the cycle. Evaluate the whys behind your spending. Consider ways to celebrate your victories that don’t break the budget. You work hard for the dollars you earn, so make the most of it!
Each week, we’ll be posting a new blog article in our “Friday Focus” with tips and tidbits to think about as we work toward healthy finances in 2021!