Ways to cut back on spending in the new year

Posted at 7:23 PM, Jan 21, 2021
and last updated 2021-01-21 20:23:32-05

Experts say the key to accumulating wealth is actually quite simple.

“The only way you can accumulate it is by not spending,” said Sam Griffin, CPA and President of Sam M. Griffin & Co.

But not spending money is easier said than done. With credit cards and paperless banking, Griffin says that many people make the mistake of not really knowing where their money is going.

“It doesn’t hurt to know where your money goes. Check your checkbook, your credit cards and see where you’re spending that money to see what you can, in fact, cut back on,” he said.

Some ways to save are as easy as packing a lunch instead of eating out all the time, limit monthly subscriptions for services such as Netflix, Hulu, or Amazon Prime, buy generic brands at the grocery store, have your bank automatically transfer a small portion of every paycheck to savings, and pay off debts to free up your income.

“It boils down to what I refer to as wants and needs. If you really want something bad enough so that you're willing to give up the money for the cost, then it becomes a need. When it becomes a true need, you can find a way to buy it by cutting out something else,” said Griffin.

Food is one of the biggest expenses for a lot of individuals. According to USDA’s Economic Research Service, in 2019, Americans spent an average of 9.5% of their total disposable income on food at home and outside of the home.

You can cut back on food by eating out less and pre-planning your meals for the week, also checking your pantry before you head to the grocery store.