6 Signs You’re Spending Too Much on Household Expenses
Written by
Brooke Barley
Edited by
Levi Leidy
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Sometimes we get into a routine and don’t even realize how much it’s costing us. Our budget might be out of whack, but we don’t know how to adjust it because it’s what we’ve always done.
The first step to making a change is to notice the signs that your budget isn’t working anymore. Here are some signs that you might need to reexamine how you spend your money on household essentials.
You’re Relying On Credit Cards
Think about your last grocery run. Did you use a credit card to get the points, or did you use it because you didn’t have enough money in your bank account to pay for your items? It’s fine to use a credit card if you pay it off at the end of the month, but to build up credit card debt to pay for everyday essentials is only going to get you into more trouble later. Try looking at exactly how much money you have coming in and dedicate a portion of that to household expenses and stick to that number. In addition, allot some of your income to paying off your credit card debt.
You’re Paying Too Much in Rent
The general rule of thumb is that your rent or house payment should be 30% or less of your income. If more than half of your income is going to rent, that might be the reason why you’re running into financial problems.
You’re Not Paying Bills on Time
If you’re struggling to pay your bills before their due date, you might be spending too much money elsewhere. See if there’s something you can cut out (like going out to eat or a gym membership) to put more money toward your bills so you don’t incur late fees.
Your Credit Score Is Low
Is your credit score below 580? This could be due to paying bills late, having too much debt or utilizing too much of your available credit. Try to take steps to raise your credit by paying bills on time and reducing your debt. This way, if you need a home or car loan or want to get another credit card in the future, you can.
You’re Not Saving Any Money
Yes, it can sometimes be difficult to put aside cash, especially if you live in an expensive city. But every little bit counts. If your household expenses are so high that you can’t put even $20 away every paycheck, it might be time to consider downsizing or moving to a more affordable location.
You Can’t Afford Anything Outside of the House
If you’re working just to pay your bills without any money left to do the things you enjoy, then you owe it to yourself to reevaluate how you’re spending your money. Your best bet is to make a budget that has “fun” built into it, that way you don’t forget to pay yourself as well. You might need to make adjustments in where you live or what you eat, but make sure to have a little wiggle room to take advantage of cool opportunities that come your way.
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