How to Be Happy and On a Budget
As you begin working on your family’s budget, and realizing how your cash flows, it is important to consider some of the purchases you make throughout your month that are setting you back from saving more.
Remember, to become successful investors, we first need to get an emergency fund and get out of debt.
I’ve compiled a list of the top ways I have saved money since beginning budgeting years ago. It takes a lot of self-control to stop purchasing certain items, and to modify your behavior around spending.
The hardest part of a budget is controlling yourself.
It’s hard to change your daily drinking habits or buy different brands. For me, it was especially hard to buy used items instead of brand new. But once you learn that truly, no one cares if you are wearing a $50 or $8 t-shirt, your outlook will change. It’s also okay to not buy coffee every morning. Trust me, you’ll survive! There are other ways to get energy to make it through the workday.
The first obstacle with budgeting is behavior modification. Remember that you can still fit in some of these things if you properly allocate money for them. You don’t need to go cold-turkey on everything right away!
The top 6 ways to save money while on a tight budget and still being happy include:
- Quit buying all brand name clothing.
- No more overpriced drinks.
- Start meal prepping!
- Cancel your subscriptions.
- Don’t order alcoholic drinks when at restaurants.
- Buy used.
- Utilize the 72-hour rule.
1. Brand Name Clothes
Once you realize that you don’t need a $250 purse, $150 earrings, and $75 shoes, it’s just the beginning. Now, I understand that people are going to argue that “quality will last longer, thus making you buy less in the long run”. It’s a completely valid argument.
But I can tell you that I have found some great items at Ross, TJMaxx, and Target that have lasted me years, look modern, and cost me significantly less.
There are so many companies that sell products that look like name brand items. One place I love to go is Etsy. For instance, I can find jewelry for much less, but still with good quality.
Now, I don’t go buying clothes from sketchy ads on Facebook or Instagram. I do my research, and you should too. But you’ll be amazed with what you find!
If you absolutely must have your name brand shoes, jacket, or necklace, but it doesn’t fit in the budget, then you’ll be faced to make your brain work. Ask yourself, how can I afford this? Instead of flat out telling yourself I cannot afford this.
Start getting creative: Ask for the shoes for birthday, save up money and buy that ring as a gift to yourself, or put it on your Christmas list.
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2. Overpriced Drinks
This is huge. And nothing new.When you work on your budget you should start to see how significant your drink purchases add up.
But, you tell me, “I literally cannot make it through my day without my coffee!”
If you could look at limiting your consumption to every other day, then to twice a week, then to once a week, imagine how much you could save in dollars over the course of a month. Or a year.
Also, if it is energy that you need, then find a way to fit in a 20-minute workout in the morning, or blend your own fruit smoothies in the morning with some protein powder to keep you full until lunch.
It’s always the small purchases that sneak up on us!
3. Going Out to Eat for Lunch at Work
This is a hard one, especially if you’re used to it. But, as I will emphasize throughout this article, you need to watch what it does to your budget!
If you absolutely hate to meal prep or eat sandwiches, then make sure to arrange it in your budget to afford going out to eat. (Not advised when you are already in tons of debt!) But, know that this one racks money up fast.
However, if you’re open to trying to save money, you should really look into meal prepping. This one saved me when I was in graduate school, and I got many classmates to join in. I never once ate a sandwich and chips for lunch.
I actually ended up eating healthier by meal prepping!
Check out my Pinterest page for meal prepping tips and ideas!
4. Subscriptions
Let me begin by saying that your dog will survive without his monthly toy box, and that you’ll be fine without your monthly box of trial makeup.
How do I know? Because I used to subscribe to a ton of subscription services!
Am I saying to absolutely get rid of all your subscriptions? Well, only the non-essential ones.
For instance, the only subscription I belong to at the moment is Spotify, which I make sure to allocate a section for in my monthly budget. I like music, so I find a way to fund it.
Subscription boxes, when received via mail give you a “happy high” (that’s what I’ll call it). It’s exciting to get a bag of new makeup, or jewelry pieces picked out just for me! But that doesn’t mean you have the excuse to fund numerous boxes that you like to get to simply get that “happy high” when receiving them. We are trying to save money, remember?
Let’s say you decided to rid of cable in order to save on money, and instead use Netflix, Hulu, or another subscription service like Amazon Prime.
But if you subscribe to, say, four services to watch TV shows and movies, I highly encourage you to reconsider your need for these. An extra $30-50 a month can save you over $360 a year. If you include this to the other ways to save money, it adds up!
5. Alcohol
This is a touchy subject. Some of you just cannot make it through your week (or day!) without a glass or bottle of wine. However, I’d like you to think about the last few times you went out with the girls or went dancing.
It is so easy to agree to spending more than expected on drinks.
It’s crazy that prices of drinks are nearly always more than the meal itself!
We all have our special wine we like. But, the good ones aren’t always the most expensive. I have found plenty of good bottles of alcohol under $20. I have also started to drink less when out to enjoy the experience itself.
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6. New Furniture, Decorations, and Books
Surprisingly enough, I am not a big thrift shopper. I like to buy my clothes new (on sale of course), and my furniture as new a possible. I prefer my cars to be used only for a few years.What are some items you could save money on? I outlined some below:
- Furniture: Especially if you are young, I definitely recommend looking at either “used” options or less expensive furniture at places like WayFair or Amazon.com. Sure, they won’t be of the best quality, but I believe we should only buy the “nice stuff” when you can afford your dream home. At that point, you’ll be able to afford your furniture in cash, and won’t have to worry about going in debt for that really nice couch or bed.
- Decorations: I am always impressed at what I can find through Facebook Marketplace or discount stores like TJ Maxx for decorations. I never have purchased décor through large mall stores, and I always find the best deals online. You can have a stylish home and not pay a pretty penny for it all. It just takes some research!
- Books: If you are a book junkie like me, then you know it can get expensive. I never purchase books from the large book stores. Sure, you can occasionally get a 20% off coupon, but I highly recommend checking out discount book stores in your area, or simply buying online.
Like textbooks, I believe the best deals are hidden online.
You can also try audiobooks, which typically run cheaper! Many audiobooks can also be found on YouTube for free. I also use apps on my phone that use my library card to read eBooks or listen to audiobooks.
7. The 72-Hour Rule
Our last is more of a tip than an item. I’m not sure if this is an actual published rule, but I live by it. I started doing this years ago in college, when I had a bit of an online shopping addiction…
If you found something you feel the desire to buy, wait for 3 days before purchasing. The majority of the time, you’ll either realize that you don’t need it or you’ll find a better deal.
Understandably, there are times where it’s Black Friday, or an annual sale is going on, or your refrigerator broke and you need to buy now. That’s fine. Just make sure you have enough in your budget to pay for it. If you have an emergency fund, you can afford buying a new dishwasher. But remember to never impulsively use your emergency fund to purchase anything that isn’t an emergency.
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I cannot tell you how important it is to teach your brain to stop impulse shopping. It gives us a high when “I buy something for myself because I deserve it”, but when you look back at your purchases for the month, guilt sets in.
This is the biggest hurdle when it comes to budgeting and saving money!
Okay, Let’s Summarize!
- There are lots of ways to cut back on spending while not cutting back on living!
- It is important to consider what is essential vs. what makes you feel happy. How does the $6 coffee make you feel? How about those subscription boxes?
- Remember to not try to cut everything cold turkey. Take time to challenge yourself and reflect. This is a process!