Facing rising costs with stagnant income? Feel like you're swimming against a financial tide? We are here to help. In the latest episode of Inspire Budget Podcast, we talk candidly about the realities of our economy.
We shed light on how you can make your money work for you by understanding your spending patterns and making informed decisions. We'll share practical strategies to manage your money effectively, from overhauling your budget to being intentional with your spending. It's all about working smarter, not harder, to ensure your financial stability amidst economic uncertainty.
As if that wasn't enough, we also share innovative ways to boost your income and cut back on costs. Wondering how to keep your finances afloat? We'll give you insights on auditing subscriptions, making little changes in utilities, and renegotiating bills. And if you're open to exploring side hustles, we got you covered. From freelance work to online selling, we'll talk about how you can turn your skills into an income stream.
Remember, you're not alone on this money journey, and together, we can navigate the stormy seas of personal finance. Stay tuned for more actionable tips and strategies, as we continue to make the complex world of finance simple.
Check out Quicken
Episode #132: How to Handle Unexpected Expenses
Episode #87: Negotiate Your Way To Wealth with Mandi Woodruff-Santos
Debt Free Roadmap
You Might Like:
Facing rising costs with stagnant income? Feel like you're swimming against a financial tide? We are here to help. In the latest episode of Inspire Budget Podcast, we talk candidly about the realities of our economy.
We shed light on how you can make your money work for you by understanding your spending patterns and making informed decisions. We'll share practical strategies to manage your money effectively, from overhauling your budget to being intentional with your spending. It's all about working smarter, not harder, to ensure your financial stability amidst economic uncertainty.
As if that wasn't enough, we also share innovative ways to boost your income and cut back on costs. Wondering how to keep your finances afloat? We'll give you insights on auditing subscriptions, making little changes in utilities, and renegotiating bills. And if you're open to exploring side hustles, we got you covered. From freelance work to online selling, we'll talk about how you can turn your skills into an income stream.
Remember, you're not alone on this money journey, and together, we can navigate the stormy seas of personal finance. Stay tuned for more actionable tips and strategies, as we continue to make the complex world of finance simple.
Check out Quicken
Episode #132: How to Handle Unexpected Expenses
Episode #87: Negotiate Your Way To Wealth with Mandi Woodruff-Santos
Debt Free Roadmap
You Might Like:
So, when you track your spending, your money, habits become clear as day, just like my habits being very clear to me. I could no longer ignore them, and that's when you can decide how you want to make adjustments to your budget, based on what you like, what you want and where you tend to impulse spend or spend money unplanned. Hey, this is Allison, and welcome to the Inspire Budget Podcast, where we talk all things budgeting, debt and saving money. Today's episode hits close to home for many of us. We're diving into a topic that's on the minds of well, pretty much everyone I know.
Speaker 1:How do we manage our money effectively when it feels like everything around us is getting more expensive but our paychecks aren't keeping up? It's a tough situation, one that can feel completely overwhelming and, honestly, sometimes a little bit hopeless. Just the other day, I was at the grocery store and I was looking at prices and thinking wasn't this way cheaper just a few months ago? And can we just go back to 2019 prices? And the thing is, is it's not just groceries rent utilities, hoa dues, you name it everything seems to be on the rise. It's like we're in this boat trying to row upstream, but the current keeps getting stronger. But here's the thing even when it feels like the odds are stacked against us which, let's be honest, it does there are still strategies and steps we can take to navigate these rising prices without going into debt. It's all about adapting, being smart with our choices and sometimes getting a little bit creative with our solutions, even if it's just temporary. In today's episode, we're breaking down some practical, actionable steps, because you know me, I love for you to leave these episodes with things you can put in place. So we're going to be talking about these practical, actionable steps that you can start implementing right now, like right when you're done listening. So, whether you're trying to adjust your budget, cut down on expenses or find ways to bring it a little extra money, I've got you covered. Let's get started Now.
Speaker 1:We're talking about the reality of rising costs and, trust me, it's not just you noticing this. It is a widespread issue, and understanding it is the first step to tackling it Now. This wouldn't be such a big problem if our incomes were keeping up with the rising costs around us, but for many of us, that's just not happening, our family included. For example, my husband is a teacher and this past August, his school district offered a 3% raise across the board for all employees. Now I love that they are offering a raise. I think that that's wonderful, but let's be real here. Life costs more than the raise he is receiving, meaning our prices have increased much more than 3%. So while I am so grateful that his school district is committed to paying their teachers and staff more, mathematically it's not enough to keep up with the rising costs. This has impacted our own family and, honestly, how we budget each month. In some cases, people are actually earning less, especially if you factor in any reduced hours or job changes in the past few years.
Speaker 1:This is tough, I know, and it's really frustrating and it can be disheartening. You work hard for your money and it feels like it should go further than maybe it actually does. But here's the key While we cannot control the economy, we can try to control how we respond to it. It's about making informed choices and understanding where your money is going. Keyword informed we're not talking about emotional choices. We're talking about informed choices.
Speaker 1:So before we talk about how to deal with this, I want you to take a moment to think about your own spending. You can even journal about these if you want. Just jot them down, pause this, think about it and then hit play. But here are the questions I want you to think about. What are some areas where you have personally noticed prices going up? How has it affected or impacted your monthly budget? These are important questions, and reflecting on them is the first step toward making some changes that will hopefully ease some of that financial stress for you. Now, if you know me, you know I was a teacher before I started my own business, so it is important for me to really teach and offer value in these podcast episodes. So here are four steps you can take right now to manage your money and budget despite the rising costs around us. Let's dive into them. Step number one is to revisit and adjust our budgets. Now, I know that budgeting might not be the most exciting topic for some, but trust me, it is a game changer, especially right now in today's economy. The first step is to really get a clear picture of where your money is going, and this means tracking your expenses, and I mean all of them, from that morning coffee to your many streaming subscriptions I know we have a lot of streaming subscriptions Now.
Speaker 1:15 years ago, I started tracking my spending and, to be honest, I did it out of necessity. I was tracking my spending so that I could make sure I didn't overdraft. But these days I track my spending because it gives me a lot of insight into my patterns and my spending habits. Now here are three things I learned about myself during my process of tracking my spending, starting 15 years ago. First off, I tend to spend a ton of money on food, usually convenience food, so anything I can buy at the grocery store that seems super fast and convenient to make restaurants eating out, things like that. I also spend money when I am emotional or sad and sometimes bored. And the third thing I learned about myself during my spending process or tracking my spending, I should say is I said I wanted to save money, but I never followed through with it. So when you track your spending, your money habits become clear as day, just like my habits became very clear to me. I could no longer ignore them, and that's when you can decide how you wanna make adjustments to your budget based on what you like, what you want and where you tend to impulse spend or spend money unplanned.
Speaker 1:Here are some tips to make tracking your money easy and straightforward. First, find a system that's easy for you, that can be writing it all down on paper. Personally, I don't like that idea for me because that seems like it takes too much time and energy. You can find a program online that you can purchase an Excel document or a Google Sheets document. You can use an app I know that Mint is going away and so there's so many different money apps that you can find and use to help track your spending or you can use a software program. There is no right or wrong system for you. The best one is the system that you can stick to consistently.
Speaker 1:I personally use Quicken. Quicken is a software subscription that I personally think is worth every single penny, and the reason why I love it so much is because I consistently use it every single week, meaning I have a system down. It works for me. So don't ask me to change my system because I know it works. I like it, it's consistent. I have years and years of data in this software program and I absolutely love it. I'll actually leave a link in the show notes for Quicken If you're interested in checking it out. At the time of this recording, they have a 50% off sale, and I have never seen a sale for 50% off with Quicken, so jump on it if you are interested, and they also have an app as well, called Simplify, so it's really an inexpensive way for you to have a system already in place to make tracking your spending easy.
Speaker 1:Now, after you have committed to a system no matter what that system is then it's time to actually follow through on tracking your spending. I have personally found that an easy way to make it a priority in my life is to set a timer for 20 minutes about once a week. During this time, track all of your past spending so you know where your money is actually going. I will literally use my phone, open up my phone to my bank app and I will just write down where my spending went into Quicken. I like to manually input my expenses and my spending. I know that seems crazy to some people. It's just what I've been doing for years. Do what works for you.
Speaker 1:Once you have a clear idea, though, of where you're spending money, it's time to categorize these expenses, so divide them into essentials and non-essentials. Essentials are things that you absolutely need, like housing, groceries, food not restaurants, but groceries utilities, transportation, paying those student loan payments, so that way you don't get a late fee or any other loans like that. Now, those non-essentials well, these are things that are nice to have, but they are not must have. By categorizing your expenses in this way, it's gonna make step two in this process, which we're about to talk about, so much easier. It's also important to adjust your mindset. I want you to think of budgeting not as a restriction, but as a way to empower yourself to make better financial decisions. It's about taking control of your money rather than letting your money control you.
Speaker 1:Now, really quickly, before we move on to step two, I need to talk about flexibility in your budget. Life is unpredictable and sometimes expenses pop up that we didn't plan for. Having a little wiggle room in your budget for these unexpected costs can be a lifesaver. You can add wiggle room to your budget by adding a buffer category to your budget. This way, if something pops up, you have room in your spending to cover that unexpected cost. I go into more depth about adding a buffer into your budget in episode 132, how to Handle Unexpected Expenses. So if you're interested in learning more about that, just skip back a couple episodes to episode 132 and give it a listen. All in all, just remember that budgeting is a continuous process as your life changes, so should your budget. It's not set in stone. Revisiting and adjusting your budget can help you stay on top of your finances, no matter what the economy throws your way.
Speaker 1:["depth-free Roadmap"]. Today's episode is brought to you by my free debt-free roadmap. If you have debt and you're trying to become debt-free, you know that it's sometimes a little bit overwhelming to figure out how to reach your end goal, and sometimes paying off debt is not as simple as it seems, which is why you need a roadmap fast. In this free debt-free roadmap, you're gonna get the seven easy steps to follow that will set you up for actual success on your debt-free journey, and I'll be sharing with you the three most common mistakes holding people back from paying off debt, so that you can avoid them every single month. Plus, you'll get free resources sent straight to your inbox every single week. Go to inspirebudgetcom splash debt-free to get instant access, or click the link in my show notes right now.
Speaker 1:Step number two is to find creative ways to cut costs. This is all about getting the most value out of every dollar we spend. So first up, let's talk about the big one Food expenses. I've already mentioned that I used to spend a ton of money on food, and I know I am not alone in this. One of the best ways to save money here is meal planning. It sounds simple, but it is incredibly effective. Plan your meals for the week, make a shopping list and stick to it. You'll be amazed at how much you can save by avoiding impulse buys and reducing food waste. I even have a rule when I go to the grocery store, because I do not go to the grocery store without a list and I only go down the aisles where I need to buy something because I don't know about you. But if I start wandering up and down the aisles, I'll start grabbing things and putting them in my cart and it's completely unplanned and ultimately, for me, it usually leads to food waste. Now, if you wanna listen to an incredible podcast episode about meal planning, then be sure to check out episode number 123, cooking your Way to Savings Strategic Meal Planning with Erin Chase. It is incredibly popular, one of my most downloaded episodes. You're going to love it.
Speaker 1:Another area where we can save big is subscriptions and memberships. I don't know about you, but I am subscribed to a lot of things, so do yourself a favor and complete a super quick audit of all the services you are subscribed to. Those are the things that are recurring every single month. Outside of electricity and internet, things like that. I'm talking streaming services, magazines, apps oh my goodness, apps like those things add up fast gyms, health things, whatever it is and ask yourself am I really using this? If the answer is no, or not enough to justify the cost, it might be time to cancel. Now I do want to throw a little tip in there be on the lookout for any yearly subscriptions, for instance. I have a membership and some people choose to pay for it yearly and if they forget that it's coming up, it can catch them off guard. I know for our family. We have actually had yearly subscriptions to kids, things like a box they get in the mail, completely forgot it was going to be charged again and our kids have stopped using that or playing with it. So by going through and auditing these expenses Just, I would say, even once a quarter it can really help make sure that you're not paying for something or about to pay for something that you might not be using anymore.
Speaker 1:Now let's talk utilities. Yes, utilities like electricity, water, natural gas or gas for your home. Small changes in these can lead to big savings. I'll never forget when we installed gas logs in our fireplace. I was so excited, so excited to be able to easily have a fire on at the switch of a button Well, not really, but a turn of a knob and a light of a flame thing but I loved the idea of being able to very easily have fires in our fireplace. We live in Texas, and so when it gets cold, which isn't often, but when it does, I want that fire on. I get so excited about the coziness of it. And the first month that we had those gas logs installed, our gas bill was about five times higher than it ever was before, and it was a huge shock to me. And the reason is because I was just leaving that fireplace on for hours and hours at a time and I didn't realize how much that gas would add up. And so now I am more particular about whenever I leave the fireplace on and for how long I do it. So do I still use it? Yes, very much so, especially this time of year. But instead of having it on for a full hour, I might leave it on for 20 minutes. Small changes like this can lead to big savings. Things like switching to LED bulbs, fixing leaky faucets or adjusting your thermostat a few degrees. It can really add up over time. Also, if you really want to get excited about this, if you really want to see a difference, consider unplugging electronics when they're not in use, because they can draw power even when they're off.
Speaker 1:Now here's a tip that's often overlooked when it comes to cutting costs, and that is renegotiating bills. Yes, you can actually call your service providers and negotiate a better rate. This works for cell phone plans, internet and sometimes even rent. I even have had an inner circle member who got her credit card interest rate lowered from 21% to 6%. That is a big savings when you have a balance on your credit card and you're trying to pay it off. When you go from a 21% interest rate to a 6% interest rate, oh my gosh, she is going to save so much money because she's going to be able to pay off that credit card faster and ultimately pay less in interest. Now remember it never hurts to ask. The worst they can say is no. So try renegotiating some of your bills and some of your rates.
Speaker 1:Lastly, let's not forget about a good old night in. Instead of going out for dinner and a movie, why not cook a meal at home and watch something you already have access to on one of those many streaming services? It's a fun way to save money and can be just as enjoyable. Just remember, when it comes to cutting costs, it's about making smarter choices, not depriving yourself. Now, we've covered how to track your spending and how to find creative ways to cut costs, but there's another side to this coin, and that is finding ways to potentially increase your income. This doesn't mean working yourself to complete exhaustion. It's about finding smart, feasible ways to add a little extra money to your wallet.
Speaker 1:So first let's talk about side hustles. Now, I know the term side hustle has become a bit of a buzzword, but hear me out. There are countless opportunities out there that can fit into your existing schedule. It could be anything from freelance writing, graphic design, pet sitting, tutoring or even selling crafts online. The key is to find something that you're good at, you enjoy and can be done in your spare time. I know for our family. If my husband wanted to pick up a side hustle, he could very easily do private lessons for band students that want to work more at home. I know that we personally pay a tutor weekly to come to our home and help one of my children with math.
Speaker 1:There are ways for you to make extra money with a side hustle using skills you already have. When it comes to making more money, don't overlook the power of decluttering and selling things you no longer need. Platforms like eBay, facebook Marketplace and the local buy sell trade groups are great places to start. You would be surprised how much you can make by selling items that are just collecting dust in your home. Plus, the less you have in your home when you get rid of those items, the less you have to clean and manage, so it's a win-win all around.
Speaker 1:Another idea to explore is upskilling. In today's world, there are so many resources available online to learn new skills that can help you earn more. This can mean taking an online course to advance in your current job or learning a completely new skill that opens up additional income opportunities. I personally know someone who has started bookkeeping for small businesses on the side. This allows her to make extra money from home using a skill she already has. Now let's address the elephant in the room the time factor. Yes, all of these ideas do require some of your time, but the trick is finding something that integrates well with your lifestyle. This shouldn't feel like a second full-time job. The goal is to create a balance that works for you while bringing in some extra cash.
Speaker 1:Remember any of these side things that you do. They don't have to be permanent. They can be temporary, for just a season of your life, while you want to bring in extra money when times might be a little bit hard. And, of course, don't forget to negotiate your salary at your current job. If you've been at your job for a while, and especially if you've taken on more responsibilities or excelled in your role, it might be time to have a conversation about your pay. Do your research, know your worth and present your case confidently. If you want to learn more about negotiating for a higher paying job or negotiating a raise, go check out episode number 87, negotiate your Way to Wealth with Mandy Woodruff Santos. You're gonna love it. Overall, increasing your income can be a game changer in managing your money. Especially in times like these. It's about being resourceful, proactive and open to new opportunities.
Speaker 1:The fourth and final step I want to talk about today is to be flexible and check in on your money. Often, managing your money is not this one and done deal. It's a continuous process that needs to adapt as your life changes. This can mean revisiting your budget when you have a change in income, adjusting your savings goals or reevaluating your debt repayment plan. This is something I just did. A couple of days ago, I found out that our HOA dues are raising, are increasing about $150 a year, which means that the amount of money I set aside each month into my sinking fund is going to need to change. So I went in. I changed my automatic withdrawals. I have money automatically taken out of my regular bank account and they goes into my Ally bank account, that online high-yield savings account, every single month on the same day each month, and I just had to increase that number so that I would have enough money for our HOA dues when that bill comes in the mail.
Speaker 1:The key here is to stay flexible and responsive. Life can throw us unexpected curveballs a sudden job change, a medical emergency or even positive changes, like a new family member. Your financial plan needs to be able to pivot and adapt to these changes. Also, don't be too hard on yourself if things don't always go according to plan. It's okay to make mistakes and have setbacks. What's important is that you learn from them and keep moving forward.
Speaker 1:Every step, no matter how small, is progress, and remember to check in with your financial goals often. I personally like to do this every month. That might sound too often for you, and that's okay. Find a cadence that works for you. When you check in on your money goals, ask yourself questions such as are my money goals still relevant? Do they need tweaking? These regular check-ins ensure that you stay on track and make adjustments as needed. And, finally, keep educating yourself about personal finance. The more you know, the better decisions you'll make. There are so many resources out there Books, podcasts, blogs and even free online courses. Invest time into your financial education, because it's one of the best investments you can make.
Speaker 1:Now, as we come to the end of today's episode, let's quickly recap the four steps we discussed to help manage your money effectively during these times of rising costs. Step one is to revisit and adjust your budget, track your spending, categorize your expenses and make adjustments when necessary. Remember, budgeting is about empowerment, not restriction. Step two is to find creative ways to cut costs. From meal planning to cutting unnecessary subscriptions and even renegotiating bills, there are many ways to reduce your expenses without sacrificing your quality of life. Step three is to earn extra money. You can do this by exploring side hustles, selling unused items, upskilling or even renegotiating your current salary. Small efforts can lead to significant increases in your money. And step four is to check in on your money often, stay flexible and reassess your money plan. Often, life changes, and so should your approach to money. These steps are designed to give you control over your money, even when it feels like everything else is out of control.
Speaker 1:Now, before we sign off, I'd like to ask a small favor. If you found value in today's episode, please take a moment to rate and review the Inspire Budget Podcast on whatever podcast app you're listening to. This on your feedback not only helps us improve, but it helps other people find the podcast as well, so we can continue to grow our community of Inspire Budget listeners. Thank you so much for joining me today. Remember that managing your money is an ongoing journey and you're not alone in it. Stay tuned for more episodes where we will continue to unpack the world of personal finance, making it simple, actionable and, most importantly, achievable. Until next time, keep an eye on your money, stay positive, and here's to making the most out of every dollar you have.