A report by Girlboss reveals that millennials spent a whopping $200 billion in 2019. What's more, women were reportedly responsible for 85% of the total amount.
But where does it all go? For the modern woman, stretching your money must be your priority, whether you have loans to pay off or difficulty in making ends meet.
If you want to build your monthly savings, budgeting smartly means having more money left by the end of the month to invest. In addition, knowing how to stretch your money could make a huge difference in staying afloat your monthly bills.
Smart spending rules
There are many ways to stretch your budget efficiently. Try to save on food expenses by limiting the time you eat out. Another way to stretch your money is to cut down your energy expenditures. For your clothes, it is possible to skimp on your purchases without looking cheap in ill-fitting attire.
You can cut back on some leisure activities or items that you usually spend on or look for budget-friendly substitutes instead. If you enjoy running and going to the gym every two weeks, save money by canceling your memberships and substitute with free workouts.
Plan your meals
The average U.S. household spends 62% on housing, transportation, and food, according to the Bureau of Labor Statistics. Not to mention, the average household wastes 20% of their food purchases each year.
So what’s the solution? Buy only what you will consume and not an extra unripe avocado more. Meal planning will allow you to save your money by staying mindful of what you eat in a week. In addition, this will help reduce the temptations of ordering takeout.
Be mindful of your credit
A reported 71% of women admitted to relying heavily on a credit card, while 55% said they're still paying off student loans, according to statistics from Financialcapability.
Credits cards are beneficial for individuals as they help you manage your cash flow by giving you one month to pay without interest. Those cards also help you monitor every purchase or expense you make, which is useful for budgeting.
Know your number and maintain a high score by paying bills and loans on time. You can use your credit card as a budgeting tool by tracking your spending and earning rewards during the process.
Reduce your utilities
As difficult as it may sound, cutting down on utilities doesn’t have to become a major sacrifice. Utilities include your heat, cooling, cable, phone line, insurance, and other monthly bills.
There are plenty of ways to adjust them while saving money, such as turning down your heat by a few degrees, using a fan during warm weather, and opting for slower Internet service. If you’ve signed up for online streaming services like Amazon, Netflix, or Hulu, you probably don’t need cable.
Use an app
An effective way to get your finances in order is to keep track of your money. The same way that a food diary keeps you on the right track with your diet, recording your spending will also help you stay on track with your finances.
Consider using a money managing app that shows you a window of your spending by linking into your bank account. With this, you can create a budget according to how you see your spending stacking up with your goals.
Staying on a tight budget can be challenging if you don't know how or even where to begin. However, once you've determined where your money goes, it will be easier to stretch it as far as possible. After all, the key is to save without sacrificing your daily needs.