When your budget is stretched too thin, it can be hard to know where to start. You may feel like everything you spend money on is necessary, and in some cases, it probably is. The goal is not to cut every enjoyable thing out of your life. It is to find a few places where you can lower your spending and give yourself some breathing room.

Start With the Easy Cuts

Take a look at your bank and credit card statements from the last month or two.

You may notice expenses you forgot about or purchases that are happening more often than you realized. Some common places to start include:

• Streaming services you rarely use
• Subscriptions and memberships
• Takeout and food delivery
• Convenience store stops /coffee stops
• Online shopping
• Entertainment and impulse purchases

You do not have to eliminate everything. Even cutting back can make a difference.

Look at Your Monthly Bills

Some bills may not be as fixed as they seem. It may be worth calling your phone, internet, streaming, or other service providers to ask if a less expensive plan is available.

You may also want to shop around for insurance plans. Sometimes the same coverage with a different company can have lower premiums. Just be careful about cutting important coverage, such as insurance, simply to lower a monthly payment.

Cut Back on Flexible Spending

Groceries, gas, household supplies, and personal care items are necessary, but they are also areas where many people can make small adjustments.

Meal planning, shopping with a list, using what you already have at home, and making fewer trips to the store can all help. You do not need a perfect budget. Small changes that you can stick with are usually more helpful than a plan that feels impossible.

Protect Your Basic Needs First

Credit card payments are important, but missing rent, mortgage, utilities, or insurance can create a more immediate problem.

Do Not Wait Too Long to Ask for Help

If credit card minimum payments are taking up too much of your income, cutting a few subscriptions may not be enough. A credit counselor can help you review your income, expenses, and debts. Depending on your situation, a debt management plan may help lower interest rates and combine eligible unsecured debts into one monthly payment.

Take a Look at the Bigger Picture

Sometimes the problem is not overspending. The cost of housing, food, insurance, and other necessities may simply be more than your income can comfortably cover. When that happens, the answer may involve a combination of spending changes, additional income, or a different repayment plan.

We also offer free and confidential budget and debt counseling. We can help you take a closer look at your debt and budget, understand your options, and create a plan for moving forward.