12 Creative Ways To Cut Costs

Everyone deals with excess spending a little differently: some of us opt for an intense all-out sprint approach to financial health while others plod on with slow, steady consistency like hitting a daily step goal. Whatever your intensity level, the Budget Nerds are sharing twelve ways to cut costs!
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Timestamps:
0:00 #1 - Coupons
6:10 #2 - Cancel services and subscriptions
8:50 #3 - Change payment frequency
10:59 #4 - Shop around
13:30 #5 - Figure out groceries
16:03 #6 - Negotiate
18:07 #7 - Homemade solutions
21:43 #8 - Cut a little from a lot of categories
23:04 #9 - Figure out groceries, part 2
25:10 #10 - Reduce dining out...or don't
29:10 #11 - Don't buy right away
32:46 #12 - Reconsider transportation
35:00 Do what works for YOU!
35:54 YNAB Wins
Links mentioned:
- Our $298 Grocery Budget for a Family of 5: www.youneedabudget.com/our-29...
- More Money Challenge: www.youneedabudget.com/moremo...
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[@catharinekarow6654]

My YNAB proud moment - had an emergency furnace replacement (as in imminent -30F temps in the forecast) cost 10K, AND an urgent vet bill this week. They were both fully (actually more than needed) funded. Not an ounce of sleep was lost. I was not this proud when I graduated with a doctorate. Thank you, YNAB!

[@minajones8341]

Congratulations!!!

[@Ann-Marielivingonabudget]

That's incredible!

[@candy2325]

Lol congratulations 🍾

[@docdoctme]

Great tips and insight! Thanks for sharing. New subbie.

[@benc3726]

"We could do an entire episode, maybe five episodes on groceries." Yes! Please do!

[@YNABofficial]

We'll definitely do this sometime in the future. I'm thinking we should bring on our lead educator, Erin. She could start a grocery nerd podcast! ~Ernie

[@RandomFandomDragon]

Yes, would love to see this!

[@lindseyrybicki2438]

For groceries, I had to make five separate categories called “Week 1,” “Week 2,” etc because seeing the full amount just made me over spend so it’s nice to see the smaller amount and then know that each week I get more money. I still budget the full amount ahead of time but I just couldn’t handle seeing that larger amount. It has been working and with more categories, that means more emojis!

[@HibiscusHigh]

Did the same! Although, I only made 4 categories: 1-7, 2-14, 15- 21, and 22-31. I try to extend the fourth week by eating from the pantry as much as I can.

[@YNABofficial]

That's actually what I do too! I put a touch extra in that fourth week, but most of the time it's a good way to challenge us to stretch ourselves in those last extra few days of the month. Usually that extra money just rolls over to the next month! -Hannah 🌻

[@ilaliberte]

I discovered (after using YNAB for 3 years... duh!) that you can set you groceries target as X per *week* instead of month, and YNAB breaks up the progress bar into the number of weeks for that month. Game changer!

[@cjmiller5972]

My daughter and I talked about it and decided that she would not get her license when she was 16. We checked in each year, but she really didn't need it until after college. By then, I was in a position to get a new car and she got my old car. I saved about $5000 on insurance and gas as well not having to help her purchase a car.

[@elizabethgadsby9641]

On the topic of medical bills, my aunt used to work in billing at a dental office and gave me this pro tip. Always double check a bill from a medical provider against what the Explanation of Benefits from your insurance provider says that you owe. You'll be amazed at how often places accidentally overcharge you!

[@JacyOnTheFly]

Around the holidays, my ice maker broke. After watching some KZbin videos, and getting advice from friends, I repaired it myself. That gave me the confidence to fix my leaky garbage disposal. I saved a couple hundred dollars, and I learned that there are some repairs I can tackle on my own. Soon I’ll be ready for a pair of low ridin’ plumber’s pants!

[@RandomFandomDragon]

Love this! Our dryer went out about a year ago, and we really couldn't afford a new one. Did some KZbin research, and we were able to order the specific part and fix it ourselves! Much cheaper, and it's still going strong. Also forced us to do some maintenance we'd been putting off

[@JacyOnTheFly]

@@RandomFandomDragon That's awesome!

[@cjmiller5972]

My favorite cost cut has been cutting off paper towels. Now I use kitchen towels and wash/ re-use.

[@NettieFIRE]

‘Oh hey, did you hear that Ernie and Ben are doing a live stream - it’s been going for 120 hours straight’ 😳. ‘Oh yeah, they’re talking about *grocery* budgeting’ 😉. 😆

[@nitasporseen7926]

So glad to hear you guys talk about it being okay for dining out to be a priority. It’s a category I’ve struggled to rein in in the past, but I hadn’t found the solution for myself until recently. Instead of just “cutting back”, I went through a couple months of purchases and flagged ones that I remembered enjoying with one color and ones that were either not memorable or regrettable with another color. I learned that I always enjoy a nice meal out. It’s about ambiance (and a decent cocktail) for me, not avoiding doing the dishes. :) So I’ve adjusted my categories and now have a “Fine Dining” category that I fund with enough $$ to go out once a week, and I have a “Convenient Food” category that I don’t fund at all, but can WAM something else into if I find myself in a situation where it’s Panera/Chipotle or bust.

[@elizabethkeen3333]

Love that flag idea! I’m going to try it.

[@RandomFandomDragon]

What does WAM mean?

[@nitasporseen7926]

@@RandomFandomDragon haha sorry, whack-a-mole… just moving money from another category to cover.

[@RandomFandomDragon]

@@nitasporseen7926 ty! I figured you meant moving funds, but couldn't figure out the letters. 🙂

[@ilaliberte]

One thing I saw in a YNAB money story that has been amazing for me is that if I want to overspend a category, the overspend has to come from fun money categories. Then you'll see if you really want this thing that would cause the overspending!

[@jcgardenia]

I called my insurance agent late on a Friday afternoon and asked her to cancel my auto policy. She didn't argue or ask questions, just said OK. She probably wanted to go home at that point. So that's my advice. Call at the end of the day if you don't want to get into a discussion. Then I just bought another policy online from another company.

[@kimspirrison2294]

I'm a 3 year YNAB-er. And cutting car and home insurance was a game changer for me. We found a good insurance broker who does all the checking for you. And now, annually, we re-evaluate our insurance plans. We pay a small fee ($50/$75) if we switch, but then can save hundreds/maybe a thousand a year. One of the best lessons I learned (through early Dave Ramsey - have to give credit) was to remove any emotional attachment you have to your first insurance company. So true. In 5 years, we have changed our plans at least 3x with very little effort on our part.

[@RandomFandomDragon]

I've only attempted to review once through a broker, and it turned out I already had the best policy, lol. I need to check again, though, since it's been a couple years.

[@nigilvalikodath]

Wow for a second I thought you were in the same room!

[@catharinekarow6654]

Exactly my thought!

[@YNABofficial]

It does line up pretty well!

[@PatrikKron]

I don't like calling sales or customer service. But I did take a day when I called both my internet provider and my home insurance company and got a rebate for both. I've budgeted the amount I should have payed for my internet and now I've just reached the point where the rest of the contract is "free" (since it's fully funded).

[@trishaann3489]

I went without fast food coffee for $200 days. I saved $1400 and I shed a few pounds. I was an all around win! Having watched that video, I feel I will do this again.

[@amandacollins518]

The Nickel and dime effect works both ways. Sometimes it is not about finding big ways to affect the budget all at once but fine tuning your frugal muscle to shave off the top enough that your savings bucket gets a little bigger.

[@OscartheChunk]

This is really dumb. But I am incredibly thrown by the fact that Ben is on the right and Ernie is on the left. I think I may have issues. Great Episode!!

[@YNABofficial]

No, I totally get it! But I'm not sure if we've ever settled on a layout so you may be thrown for a few more loops here and there 😀 ~Ernie

[@noneya154]

I saved 15% on my car insurance ny switching to Geico.

[@lavs23]

Double edge razor is my shaving savings. Year of shaving supplies once you have a razor is under $50.

[@kimspirrison2294]

Another note - YES! get an itemized medical bill. So often you get billed for all the services/ procedures/ equipment that typically gets charged for a certain type of event/ surgery. You may likely find something charged that you did not receive. It's not malicious, but time saving on the institution's side. But they also don't expect people to be paying cash very often.

[@moniques5545]

I avoid calling service providers, but bit the bullet one day to cancel the TV service I hadn’t used in years. I explained I am a happy internet and mobile customer of theirs and would be happy if they just cut TV without talking me out of it. Not only did they cut the TV, they told me I was paying too much for other services and gave me a great new deal. I came out with way more savings than planned.

[@StacySanseverino]

I love that- prove it to yourself so you can build your confidence that you do have agency in your budgeting decisions.

[@elizabethkeen3333]

Love that t-shirt, Ben!

[@elizabethb3994]

Shopping around for insurance deals doesn't require much work. You just ask an independent insurance broker to shop for you and whichever company you choose ends up paying them, so it's free to you. I have ours check auto/home insurance rates every year and I have switched companies twice in the last 5 years.

[@kailaholmes1839]

We switched from State Farm to Erie. Valley Trust is an Insurance Broker we used, so they don't have any skin in the game about which policy you choose. There was no pressure to switch, we simply got to be curious and decide if it was the right option for you. Highly recommend!

[@conureron3792]

Content I need

[@GoingGreenMom]

There is something to be said for the customer service aspect of an insurance company. If they make your life he'll when you are stressed out from an accident, it might not be worth the savings. I could save 10 or 15 dollars a month moving, but the company I have has been great dealing with new drivers and problem car issues.

[@SGast]

It is normally cheaper to get a plan and pay for your own phone. You are also less likely to buy a really expensive phone as you see the full price and have more options. and can keep your phone for as long as you want without additional cost.

[@HillaryHarrison]

For car insurance, I just shopped around online and got a few different quotes through their online systems. Once I chose one, I got a call phone from the insurance company to work through the details. I had no choice but to talk to them at that point and I got a much better rate!

[@susantom4400]

We do the online quotes and they come up cheaper than what we have. But when we actually talk to them, they can't beat our current insurance. We feel our insurance is way too high but it seems we have wasted so much time just to end up back where we started.

[@malindaburrell9897]

A lot of times if you call on a hospital bill and tell them that you are willing to pay the bill in full and if there is a discounted rate if you do, they generally will give you a discount.

[@mattwa33186]

I just switched car insurance companies. Had the same one for 7 years or more, and the rate kept creeping up for no apparent reason. When I checked with other companies I found I could save $80 a month by switching while getting more coverage and lower deductibles. Everything - buying new insurance, canceling the old insurance - was online. Didn't talk to a single human being.

[@amandanance9136]

We just pay for internet once a year all at once . No contract Xfinity. Did it so far for 8 years. So when we get a tax return or a bonus we pay for it all at once. Makes me happy.

[@leezee5435]

For Ben: call it the Whittle Method or Whittle Technique!

[@NettieFIRE]

Shaving is similar to sculpting so, 🤔 I might call it ‘the Michelangelo’ method - as a tribute to the well known Italian Sculptor. Used for pinching some pennies from those variable cost YNAB categories.

[@ryangirst1121]

Concerning shopping around for insurance...I've been with Erie Insurance for so long that they will never raise my rates since I've been a good customer (very little claims). I did try shopping around years back and couldn't find a lower rate anyway...so that's great to begin with.

[@lakeisharhyant2045]

We have streaming and it can add up. Maybe it's good to rotate the subscriptions. I don't lik cable. But withvstreaming I can binge show since I don't watch TV much anymore.

[@cyndijones5362]

In regards to the driving kids to school, you saved way more than you think because of the reduced wear and tear on your vehicle from being in stop and go traffic, short distance travel, etc.... If you drive 6 miles round trip 2 times a day, that's 2160 for 180 days.

[@christinegohard6526]

A month back I messaged my cell phone provider to negotiate my montly cell phone plan. Just asking about a new plan they reduced it, and I thought I was saving 16$ a month, turns out I'm saving 23$ a month! That extra 23$ goes into a sinking fund for a replacement phone ( both because I like to buy my phone outright, but also because I'm prone to damaging or losing phones despite my best intentions )

[@Carrosive]

12:08 Insurers know most people don't like the discomfort of calling them up to try to get money off. That's why they don't let you request cancelation online, because there's lots of people who would rather pay extra than what they could be paying if it means they don't have to call someone up. In the UK we have price comparison websites where you put in your details and it will request quotes from hundreds of insurers and it shows you who will give you the best price for the cover you require. I do it every year without fail to see what I could save, this year I managed to get £50 off the renewal price for my old insurer! It took me probably 20 minutes to get the quotes, buy a cheaper policy and call up my old insurer to cancel renewal. £50 for 20 minutes work is not bad at all!

[@NettieFIRE]

I had the same response….What, talk on the phone!! 😱 … run for the hills!! (Probably because when I worked I was on the phone all day. Couldn’t bare to do it in my own time. I retired in 2020 and gathered enough energy to call for alternative premium (high) home insurance - after 32 years misplaced ‘loyalty’ - and when they couldn’t do anything about their cost, I swapped. Did the same for my husband’s roadside assistance 2 months ago. I am a value-for-money demon now; threw away my training-wheels at the end of 2021! 👿) Edit - even funnier I just realised that I worked for 33 years with ‘life insurance’ products at all of my workplaces. Maybe 🤔 I have some workplace PTSD playing into this! 😳

[@NanetteLoves2Budget]

Same!

[@michaelaberry1276]

I finally got my council tax refund (student exemption) which has meant that I got to put aside almost half of next month's rent (really relieved by this because my rent is half of my income)

[@kiiabby]

woohoo! they make it so challenging to get the money back don't they?!

[@michaelaberry1276]

@@kiiabby they really do, and they just don't communicate; had about 2 months of silence before it just turned up in my account (then a few days later, I got a letter about it)

[@melanierose9015]

Itemize medical bills! I've seen multiple pregnancy tests done on patients who have had hysterectomies 🤦🏻‍♀️

[@MT-hk9cp]

WHAAATTTTT?????

[@bwfidler]

Ben, what does your shirt say? “The first rule of YNAB is…” …that we don’t talk about YNAB?? 😃

[@DaDyne]

I‘d create a budget category for YNAB merch, but it seems currently there is none.

[@amyelynch1]

“The first rule of YNAB is you tell everyone about YNAB.”

[@YNABofficial]

Yep, Amy's got it! :D

[@Ann-Marielivingonabudget]

Oddly enough, our auto insurance gives us a discount for having a monthly autopay set up, but our life insurance company gives us a discount for paying it yearly.

[@ssmith490]

Our local hospital will give 20% off medical bills if you pay in full, but you have to ask for it. Saves literally hundreds!

[@bthomson7770]

I didn't know Jason Momoa was a YNAB'er! 🤪

[@apttodo]

The concept of having to make a phonecall to switch insurance providers or negotiate prices instead of being able to do it online is mind boggling. I can do all mine online (mobile phone contract, gas & electricity, home/contents/boiler insurance etc.) thankfully! Talking on the phone in 2022, shudder!

[@YNABofficial]

Maybe I'm just assuming I have to make a phone call, but it may be possible to do it all online now. 🤔 ~BenB

[@AN-em2pl]

B U D G E T

[@terpinator24]

I have an insurance broker, so THEY call ME when they see a possible savings!

[@samanthaalberts979]

I came across another user who divides their budget in the 50/30/20 rule. So they take their income and multiply it by .5 and .3 and .2 into a holding category, and use that holding to fill their categories. Does anyone else use that arbitrary rule? How successful have you been?

[@RandomFandomDragon]

I haven't heard of this, so I'm curious how that would work

[@samanthaalberts979]

@@RandomFandomDragon 50% needs, 30%wants, 20% savings. 50% bills and necessities. 30% take out, fun, spending money, 20% savings and sinking funds. I’ve played around with a mock budget but can’t figure it out with her. From how it was explained to me, they use the 3 categories like their ‘ready to assign’.

[@huckleberrybee]

Don't shop around for insurance! Find an insurance agent to do it for you! It doesn't cost you money and they can find you the best deal. My home and car insurance is through a company that only sells through agents, which allows them to be cheaper because they aren't spending money on consumer facing ads.

[@JetBrews]

I do factor meals which is 600$ groceries by myself each month :(; then another 600$ going out monthly..sigh

[@sammcalilly107]

lmao i've been going thru this exact thing with the chainsaw, the need to buy all the PPE and everything. except i don't have a friend who had a big chainsaw like i need. so i just bought a nice chainsaw. i wasn't impulsive and i researched a great bit, but then i got impulsive in the moment that bought it because i hadn't saved enough for it. so i had to use rule #2

[@Mr.Monta77]

Smartest way to cut cost is to cut YNAB from your expenses.