INDIANAPOLIS — Everything seems more expensive this summer than ever before, and you might feel like your budget is careening out of control. Cherie Lowe, the Queen of Free, said Sunday on 13Sunrise that it may be time for a midyear reset.
Pressing pause to observe your current spending will offer a chance to reevaluate and reset a few goals for the future. Cherie offered a few first steps on Sunrise and in her blog to create some margin in an ever-tightening budget.
First, you need to track your spending, Cherie said. "If it’s been a while since you’ve budgeted, or even if you’ve never done it before, now is the time," she said. Use a program like Quicken or a spreadsheet to begin tracking your spending and check it daily to keep track of your finances.
Cancel something
You will probably find something in your budget that you’re not using. Maybe a gym membership, a streaming service or a subscription can go. "While it won’t fix all of your problems, it will help relieve a little pressure and create some margin," said Cherie. Put those savings toward another line item, like gasoline costs.
Cash, coupons and cash-back
If you watch what you’re putting in your grocery cart and keep a running total, you can keep on track. Consider using only cash at the store to limit spending because plastic, even a debit card, will make it easier to go over your budget.
If you’ve fallen out of the habit of looking for coupons or cash-back deals, get back on the hunt. "Whether it’s the local amusement offers, clothing, grocery store apps, if there’s a way to save even a few dimes on it, you should be seeking it out," said Cherie. "It’s free money and we can all use whatever we can find right now."
Adjust for price increases
Even if there's a gas tax reduction coming, pump prices are not going to completely revert to last June's level. So aim high on your gas budget, then if you come in under, reallocate those monies to pay off debt, pad the Christmas fund or move over to the grocery budget. Or, set any savings aside for the inevitable increases in heating costs for the winter, back to school expenses or the November property tax payment.
The main takeaway is to start thinking months ahead, rather than just looking ahead a few weeks. "Look at your calendar and your budget at the same time to help predict non-monthly expenses," Cherie said. "Controlling what we can control helps us all take back the reins in our finances."
Watch Cherie's full Sunrise segment in the video player.