Your Biggest Budget Busters

Especially if you’re a millennial, we’re sure you’ve heard so many pieces of advice on how to save money and afford all the things you “should” have by now…

You know, those lines that make us roll our eyes, like “if you didn’t buy an oat milk latte every week, you’d own your own home by now.” 

But we know the truth.

While yes, cutting take out coffee could help trim your budget, it’s not going to make THAT much difference to building your wealth.

If you really want to save money and actually get ahead, it’s time to focus on the big-ticket items that make the most impact.

And guess what? They’re not found in your coffee cup—they’re lurking in your housing, transportation, and food expenses. We call these ‘The Big 3’

They make up the majority (on average, 64%) of our fixed expenses, so a few small changes in these areas can lead to the biggest impact. 

As we kick off 2025, we encourage you to take stock of each of these areas and challenge yourself to some creative changes!

Here’s some ideas to get you started. 

🔐 Ways to Save on the Big 3 Budget Busters

🏡 Housing. With the current state of… everything… it can seem impossible to cut down on housing costs. But there are options! It’s not just about cutting back on utilities or downsizing (though that can help!). Have you considered negotiating your rent or refinancing your mortgage to lower payments? Or maybe it’s time to explore moving to a more affordable neighborhood or taking on a roommate.

If we’re really thinking outside the box, have you heard of house hacking (using your living space to generate income)? Or for the more adventurous, maybe you’re ready to test out nomadic living (like Jill who lived in an RV and Misti who still lives as a full-time pet sitting nomad).  

🚗 Transportation. Between car payments, gas, insurance, and maintenance, owning a car can drain your finances—especially if you're living in an urban area with reliable public transit options. We encourage you to experiment and run the numbers.

What if you tried carpooling, using public transit, biking, walking, or opting for a more fuel-efficient vehicle? How much would it save you in the long run if you opted for a used car instead of a new one? When buying a new car, do you really need all the bells and whistles? Finally, don’t forget to use apps that help save you money on gas and parking!

🍖 Food. Ok fair, maybe we could consider our coffee habit here a bit, but things don’t have to be that dire yet! We encourage you to sit down and add up how much you typically spend on groceries and eating out in a month. Does that number feel okay to you? Can you identify patterns that lead to overspending?

If you realize you need to cut down on food expenses, try meal planning to avoid impulse purchases, or even gamify it! There’s plenty of challenges to turn to like spending a month using every ingredient you already have in your fridge and pantry, not eating out for a week, having a competition with a partner or friend to come up with the best low-budget recipe, etc. 

Warmly,
Misti

⭐️⭐️ P.S. Want to share all this goodness with your friends AND earn cool Frugal Friends merch?

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