Financial expert shares the top money drain that could be costing you big time.
Transcript:
CONWAY GITTENS: Tell me, with inflation, you know, impacting everyday expenses, what adjustments should people make to their traditional 50, 30, 20 budgeting rule?
JEAN CHATZKY: The very first thing people should be doing is making sure they know where their money is going. And I can tell you with certainty that many, many people don’t. I have a coaching program called finance fix, and the first thing that we do using technology is get people to follow the money. We get them to look at where their money is actually going, and they are always shocked, chins on the floor. Because we don’t pay attention to this stuff. We just go through life and we swipe and dip and tap and click and spend. It’s invisible. So pay attention to where your money is going. You may very well find enough wiggle room that you can get yourself back on track with inflation.
The other thing that I’ve learned by doing this coaching program for, for a number of years is that the biggest budget buster for many, many people is food. Inflation has had a huge impact. There being a little bit more mindful about your food dollars goes a long way. That means making sure that you are using the ingredients that you already have at home. Shop from your freezer before you go to the store, making sure that you’re eating your leftovers, trying to minimize food waste, doing a little menu planning. And when you go out to a restaurant, understand that that the prices are going to be higher than they used to be. And that’s something that you just have to account for in your budget.
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