Rachel Cruze: The No. 1 Thing I Cut From My Budget When I Need To Save Money

©Rachel Cruze

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In a recent vlog, financial expert Rachel Cruze offered her take on an article outlining 21 things that can be cut from your budget that you won’t miss. Although she didn’t agree with everything in the article, her main takeaway was that it’s important to understand the difference between wants and needs in your budget — there are always things you can cut when costs get tight.

Cruze then described the number one expense she cuts from her budget when she needs to save money: shopping for new clothes. This article will cover her points, plus a few “luxury” items you might not miss from your budget.

Here are also five of Cruze’s most valuable budgeting lessons.

Cruze’s Top Budget Cut

According to Cruze, the number one thing she cuts from her budget might surprise those who know her. That’s because she loves clothes shopping — it helps her reduce stress and feel better. However, she emphasizes that buying new clothes is a want, not a need.

In other words, Cruze isn’t telling her followers that they should give up luxury clothes. Her point is that it’s important to identify the expenditures you can live without, at least for a little while, when you need to save money.

Needs Versus Wants

One of the most important parts of making a budget is ensuring that it’s comfortable and sustainable. Everyone has “non-negotiables” in their budget: things they’ll set money aside for even if they’re not strictly necessary. For Cruze, that’s shopping for new clothes. For you, it might be something else, like travel or trying new restaurants. 

However, those extra treats should be the first thing to go when you need to cut costs. Your budget can and should fluctuate with your needs. As food prices and other costs are going up, many people may feel pressure to save more, according to findings by the USDA’s Economic Research Service. Just know that the cuts you make are temporary, and you’ll be able to enjoy those special expenditures again once your budget is back on track.

Other Easy Budget Cuts

At the beginning of the vlog, Cruze discusses a list of items that can be easily cut from any budget. Here are a few highlights from that list, plus money-saving alternatives.

Gym Membership

If you’re dedicated to going to the gym, you might consider your gym membership a necessary expense. But if you only go every once in a while, consider cutting this cost from your monthly spending. 

Instead of going to the gym, you can save money by exercising at home, going on walks or using a free workout app. 

Warehouse Store Membership 

Have a membership to Costco, Sam’s Club or another popular warehouse store? Those memberships can help you save money if you like to buy in bulk, but if you don’t use them regularly, they’re an unnecessary cost.

If you have multiple warehouse store memberships, consider limiting yourself to just one. You can also try membership-free alternatives like Grocery Outlet or WinCo.

Cable TV

The number of American households with a cable TV subscription goes down every year. Many people find that streaming services offer all the shows they need at a more affordable price. If you want access to live TV for sports or other events, try a live TV streaming service. 

Similarly, take a look at the streaming services you currently pay for. If you don’t use all of them, cancel the subscriptions you won’t miss.

Bottled Water

Bottled water isn’t just harmful to the environment — it’s also bad for your budget. Instead of buying water while you’re out and about, keep a reusable bottle in your car or bag. Refill it whenever you find a water fountain or clean tap. 

Food Delivery

Delivery apps might be convenient, but they’re a huge drain on your budget. DoorDash, for example, charges a 15% fee per order, with a $3 minimum, as reported by Vox. Uber Eats and other delivery apps also charge varying fees. 

Cooking at home is generally cheaper than ordering food. But if you want takeout, try ordering from nearby restaurants and picking up your meal yourself. You can even grab food on your way home from work.

Negotiating Your Non-Negotiables

Some budget cuts, like those listed above, might not make much of a difference in your life — but others can feel like more of a sacrifice. Cruze admits that it’s difficult for her to slash her shopping budget even when it’s necessary. If you’re struggling to reduce your “non-negotiable” expenses, try looking for budget-friendly alternatives. For example, try thrifting instead of buying brand-new clothes or use frugal hacks to dine out without overspending. Remember that you’re making these sacrifices now so you can afford the lifestyle you want in the future. 

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