Challenge Your Budget Cutting Skills

Print viewPrint view
Challenge Your Budget Cutting Skills

Saving money. It is something that tops countless numbers of New Year’s Resolutions lists around the world. As a new year begins, many people are looking for ways to improve their budgets. Here you will find financial challenges to help you reduce your spending or enhance your ability to save.

Save $2,020 in 2020

Having a savings goal is a good thing. Consider your long term goals and beak down those goals into your annual savings goal. For example, use a theme, such as saving $2,020 in 2020. With this theme, you can have a new goal each year. By saving the year in dollars, you can go from one year to the next with a savings goal at hand. For 2020, that goal involves depositing a specific amount of money in your savings account each week to add up to a total of $2,020 for the year. To be successful, for each of the 52 weeks in the year, deposit $38.85 in your savings account. If you do that, you will reach your goal with a few cents to spare. In 2021, saving $38.87 will put you over the top of your annual goal.

Monthly Savings Theme

With this savings theme, you tackle a specific area of your budget each month and find savings in each. For example, in the first month, it might be your monthly grocery bill. In the second, it could be transportation costs. In the third, entertainment expenses. Each month, your budget focus will change as you focus on finding ways to cut costs in a new budget category. Of course, for this to be a genuinely productive challenge, you will want to maintain the changes you make in your spending habits and carry them forward each subsequent month.

Try the Store Brand

While some people may prefer name brand products, there are store brands that can take their place, allowing you to enjoy the same great product, but at a substantial savings. With this challenge, you try a different store brand product each week and see how it compares to the name brand you have always purchased. There are alternative products out there that can deliver the quality you seek at a better price point. Give them a try!

Lower (or Raise) Your Thermostat

Depending on where you live and the season of the year, the dollars you spend heating and cooling your home can have a measurable impact on your budget. With this budget challenge, when heating your home, you lower your thermostat by one degree to help you save big on your heating bill throughout the winter. Reverse the challenge in the summer and raise your thermostat by one degree while running the air conditioner. If one degree does not make any difference to you, try two, you may save even more.

Pack Your Lunch

Switching from buying your lunch near the office to bringing a packed lunch to work each day can save you significant amounts of money. The average lunch purchase costs somewhere in the neighborhood of $10. That’s $50 per week, if you eat out each day. At 52 weeks per year, you could save up to $2,600 per year by packing your lunch. Even if you only pack your lunch four days a week, allowing yourself a once per week splurge, you would save quite a bit of money.

Use the Library

If you have not been to the library in a while, you may be missing out. At your local library, you can find a wealth of media to enjoy and countless learning opportunities for yourself and your family. A significant number of libraries today offer free access to a wide variety of media including:

  • DVDs
  • Books
  • CDs
  • Audiobooks
  • Magazines
  • Newspapers

That makes your local library a valuable free alternative to streaming movie rentals or other media purchases. Many libraries today even offer electronic services where you can check out eBooks and audiobooks online.

Libraries often host educational events, meetups, and more. Many of these meetings are free or at a low cost, allowing you to get even more from the use of your local library.

“No Spend” Days

The key to this challenge is that you go for a designated period: a day, a weekend, a week, etc... without spending money on extras. This exercise is not just about not spending money (aside from the bills you'll need to pay). It’s also about learning to appreciate things that are free. It encourages you to take advantage of things like your public library, free entertainment events around town, or neighborhood parks instead of spending money on 'stuff.'

$5 Savings Challenge

This one is interesting because it doesn’t rely on a weekly or monthly deposit. However, it does rely on the regular use of cash for transactions. Whenever you find yourself with a $5 bill, you put it aside instead of spending it. If you frequently shop with cash, the savings can quickly add up.

So which one of these budgeting challenging tips are you going to implement?

Member FDIC