New year, different finances.
Experts say 2022 may be more costly than in years past.
Inflation and supply chain issues touched almost everything in 2021 and experts don’t think anything will get cheaper any time soon.
They say consumers need to reevaluate their spending for another expensive year.
DealNews.com Consumer Analyst Julie Ramhold said consumers can still save money.
“It’s important to note, you know how much cash you have coming in, what you what kind of expenses you have going out, so that you can create an accurate budget,” Ramhold said.
Once you know how much money is coming in and out try a budgeting plan like 50-30-20 method and see what you can get rid of to make ends meet.
This devotes 50% of your income to necessary expenses like rent, student loan payments coming back, utilities, gas and groceries.
“It’s important to shop the sales,” Ramhold said. “If you’re going to the grocery store, is eating into your budget more than you would like then it may be time to find a new grocery store as well.”
Thirty percent goes to your flexible spending like eating out, and all of your subscription services.
“If you’ve signed up for a bunch of free trials for different streaming services, and you’re only watching like one or two, you’re probably paying for a lot more than you need to,” Ramhold said. “Try to scale back and keep the ones that you really are invested in the ones that you watch most frequently.”
The last 20% can be used for paying off debt or saving for an emergency.
And if 50-30-20 doesn’t work for you, it’s OK to switch it up and tailor the numbers to you.
“It’s not always going to be universal for everyone. And so it’s best to just kind of find what works for you,” Ramhold said.
One tip Ramhold has is taking a look at your cell phone plan. WiFi is more prevalent so you might be able to lower your gigabytes, creating more money in your budget.