While many people’s paychecks are increasing, the cost of food and many other necessities is also going up. We have to adjust our budgets to account for increasing prices as well as other changes. Here’s how to do it.
#1: Has anything changed?
Since you last created your budget, have there been any changes? For example: Did you get a raise? Did your hours get cut? Did the amount of your social security checks change? Did you have children? These factors can determine how up-to-date your budget is.
#2: Analyze your expenses
Sometimes we incur more debt or recurring charges than we realize, like car payments or Spotify subscriptions. Make sure you’re up-to-date on how much you’re spending.
#3: Groceries
Your grocery store trips have likely gotten much more expensive lately, especially if you have a full household. Set a specific dollar amount for your monthly grocery budget, divide it by four, and allocate that amount to your grocery budget for each week of the month. And check out store brands instead of name brands – they’re often just as good!
4: Try Cash
When shopping, try to use cash whenever possible. This makes us more aware of where our money is going. As prices go up, if we opt for a cash-only shopping trip, it might even reveal if we’re overspending in certain areas.