3 Places You Overspend (Without Even Knowing It)

[Music] hey guys welcome to the rachel cruz show all right if you already have a budget then you're probably doing really well with your money i'm impressed but even if you have a budget there are categories that we all tend to overspend on so we're gonna walk through three of the most common places we tend to overspend and then later on we're gonna talk about three ways to safeguard against overspending because it can be so easy but the first one the first area we always tend to overspend is online shopping you guys this is a hard one because it is so easy so easy to overspend because it's convenience it's a time saver stuff just shows up on your front porch it makes it so easy so the biggest way to not to overspend is just don't spend just don't do it stop don't do it now easier said than done i know so i want you to kind of really think through how these online retailers strategically go after you okay they know what they're doing and they want you to spend more and more money so that they can make more and more money so here are a couple ways that they do that free shipping thresholds yep who's added an extra shirt just to get the free shipping man it's a sucker though isn't it because when i get to the bottom of a checkout and you see you have to pay for shipping you're like oh man and if you're just close enough you feel like ah you know what's what's spending an extra twelve dollars for the seven dollar shipping you know what's that big of a deal but doing it over and over and over and over and over and over it's trap it gets you to spend more also an easy checkout so a lot of these places will store your debit card number you'll have a login uh now on some of the places i go in like stores online i guess through social media or something i don't know but like everything is already filled out and i'm like what it makes it so easy and i'll be honest you guys it's so bad because i have memorized my debit card number so if i have to check out online i know it and it's just like and there we go and i'm in and i'm going where at least like if you don't do that there's a little bit of friction and be like oh crap my purse is in the car you got to go out you got to get your purse get your wallet take it out type it you know there's at least some steps involved not for this chica so i really have to watch it because there is some friction if you don't have your debit card information stored into a website that you really do there's extra work but memorizing it i mean it's convenient but man it can get you those impulse purchases it can get you but also what you can do speaking of impulse purchases is go ahead and just put stuff in your cart online and then wait wait a day wait two days because trust me there will be an email from the store that you're gonna get in your inbox be like you forgot these items and it will remind you and hopefully you'll be like oh i didn't really need that i call it my add to cart days it's like you know some days you just gotta go shopping you never really buy it but it just feels good just to look and add stuff and that's it but when you do that you're gonna get follow-up emails and they're going to give you ads in those emails okay you're going to be able to be like oh look at all of these coupons look at everything going on and again they're sneaky with it so make sure you watch that they also will create loyalty program discounts so this means you will get lots of emails with advertising so you can even just unsubscribe to these emails you can even set up a spam folder and they can just go in that folder you can delete it later but watch out because you'll get a lot of emails they also will do new customer discounts yeah man and again if you're going to buy something sure you can take advantage of like this kind of thing that's great but if you're just just just on a website just looking and you're like oh i can get an extra 10 off 15 up right now oh but again it just sucks you in so watch out for that also the limited time offers that aren't really limited time nope usually these will circle back throughout the year but you're thinking oh it's on sale oh my gosh it's limited time i got to do it now and some places will have like a countdown clock and it'll like tick down and you're like oh my gosh i only have 16 hours before before this goes away and they get you all flustered and they get you to spend more money also if you look at subscription-based discounts so this is a big one i always think about amazon with this right you're paying a fee and you do get some savings and even free shipping and different stuff but you need to look to be like okay is the subscription worth it like am i saving enough on the subscription to get everything that i want right so making sure that you look at that also bulk purchasing discounts again sounds great because you're like oh my gosh look at all this stuff i can get this is awesome but if you don't use it all then it goes to waste and then the bulk pricing you ended up spending more than if you just bought one or two things so again make sure you go and you look and you see okay per unit if it's something like that or or look to see am i actually going to use the product also point of sale financing things like after pay oh man these will get you like that is a super cute 100 sweater oh and i only have to pay 26.30 right now and throughout the next four months that's a that's great right that's an easier pill to swallow than a hundred dollars yeah because guess what they're getting getting you into debt slowly but surely you're in the funnel and 78 of millennials have missed a payment on these things like karma and after pay so just watch out you guys it it is a place for you to spend more money they know what they're doing so online shopping again we tend to overspend a lot so watch out from all of these things that they have out there to suck you in okay another place that we all tend to overspend our groceries it's a tough one food is so hard it really is i feel like it's seasonal i feel like it's you let's see okay you know what do we have going on right now is it a busy season a slow season are we cooking more are we not does stuff go bad it's just it's just hard it is so hard but staying within your budget at the grocery store it is so key so here are a couple ways to help you not overspend with groceries number one i will beat this drum until the end of time meal plan meal plan okay i'm telling you this will change the game winston and i've been doing this for years now but every sunday night i just did it i just did it last night we looked to see okay what what do we have every single night of the week what nights are we cooking what do we want for dinner and from there is our grocery list and it does it helps you because it even helps you on the nights whether you're getting home from work or the kids are home from school and you're just like oh if it's the whole i don't know what we're gonna eat more than likely you're gonna just get take out or get food delivered that's what ends up happening but being able to use what you have because you've planned ahead is so great and you can even try my free meal planner and grocery guide so this includes downloadable grocery lists and meal planning templates oh it makes it so easy you just create your meal plan and transfer the needed items over to your grocery list there's videos there's recipes it's amazing so you just go to ramsaysolutions.com meal planner or just google rachel cruz meal planner and that will help you a lot you can also start freezing and storing meals so this will save you a lot of money and a lot of time vegetables are great for freezing meat is great for freezing if you freeze you're able to see okay that's what we have and you just defrost stuff and it makes it so much faster and again will save you money also keep a running tally of how much is in your cart so i i'm it's probably like a sick game but i do play this and then i like challenge myself to be like did i is it close to the amount i have in my head when i get to the grocery store checkout line because i will all like round up and i'll i'll put stuff in my cart but when you do this and you actually keep a tally of what's going in then it's going to help you it's not going to be just like this shock and awe when you get to the register be like how much did we just spend you kind of are keeping up with what it is and it just helps you throughout your shopping also you can use coupons so don't buy the item if you don't need it just because there's a coupon but also look there's a lot of great places to find coupons and use them those will save you money also don't assume that bulk is better so compare the price per unit or the price per ounce we kind of talked about this earlier but if you don't need more don't buy more that is so hard i will do this though with freezer stuff things that don't go bad but like i'm terrible at buying bulk of fruits or vegetables stuff that can go bad produce because it's like so much i'm like oh my gosh we don't need 8 000 blueberries we only need 4 000 in our house because our kids love blueberries but they don't love them that much like it's just it's crazy so just for stuff not to go bad again because you can overspend also know when to shop so a lot of experts say to shop on wednesdays when stores are restocking their shelves and they'll mark down any item that didn't sell last week you also think about the time of day so early bird gets to the clearance shelves first or score deals on deli and bakery items just before closing time so those are great ways to save as well and shop online or do curbside pickup and so this is great because you can compare different prices you can avoid impulse buying when you're just walking and again like we were saying earlier where you can kind of tally how much you're spending you can see it there it's like before you check out you can just look at the number and know okay is this what i want to spend or not so that is very helpful and then look at different grocery stores so there are cheaper grocery stores like the exact same item can be different prices just because of the store so again aldi's is a great a great place to save even costco or sam's club if you're gonna do big bulk stuff but just look around to see different stores and what their prices are also on things pick the generic over the name brands i do this all the time especially with um like my milk or even my eggs my cheeses like all that kind of stuff a lot of the dairy stuff i'm like oh yeah i'll just get the store brand because it's fine i mean it tastes the exact same i will say there are things that i am picky like honey nut cheerios i gotta buy honey trios i do sorry i do i can taste the difference but the stuff that you can't just buy buy the generic version it's great and then also you want to buy meat when it's on sale and so you can look out for some great deals again when you buy in bulk and then you can freeze some of that you can do some cheaper cuts like chicken thighs and so chicken breasts just look to see okay where are just some ways you can cut a few dollars out so again groceries it's one that people tend to overspend on but some great ways to help you save another place in our lives that we tend to overspend on is life insurance so one of the most expensive ways to have life insurance is whole life insurance so a great way to save money here is to switch from whole life to term life so term life again is it's set for a term of your life so a set number of years and when those years are over of the term life insurance policy you're done i mean you can always get more if you want but like it's only like 20 you pay for like 20 years 15 years 30 years because the goal here for us as you're doing the rams baby steps is that you're self-insured eventually so we don't you don't have to have insurance for the rest of your life because if you have millions of dollars in your 401 k and your house is paid for you're great is it life is awesome right and that's the key so it's inexpensive but it is it's the best way to have life insurance and if you die during the time you have life insurance then the life insurance company pays out your death benefit or what's also called a payout so that's how term life insurance works whole life insurance is basically the opposite it's for your whole life it's usually more expensive because they have what's called cash value built into it which means that you have like this investment built into your life insurance and the insurance that isn't always great and the investment definitely is not great so just remember your insurance and your investing should not be in the same place okay so like separate those so again term life insurance is the way to go and i want you to get a term life insurance policy today if you haven't you guys and i want you to get the best rate possible so you can check out my friends at xander insurance who make it super easy for you you plug in your information online and xander will shop around for you and find the best rate and coverage for you and your family and just go to xander.com to get your free quote today yes it's free because remember we are wanting to keep expenses down down down we're trying to not overspend here people all right the last category that we always tend to overspend on is the miscellaneous category yeah if you've never budgeted before this is one line item in your budget you want to have because life happens you forget about stuff you're like oh crap and then you got to go put some money in somewhere and if it's a zero-based budget that means all the money's already allocated to other stuff so that that miscellaneous category kind of catches all the stuff you didn't think about so again think about annual check-ups and co-pays or home maintenance or car maintenance or oil changes special occasions taxes memberships and subscriptions like all of it so just remember i know there's a few apps that i do pay for to get like the premium version of and they all seem to hit like this was last month and i was like oh no who kicked in this like my apple receipt from my app store stuff kept hitting i was like oops oops i totally forgot i gotta pay for this stuff and so it does so the the miscellaneous category catches it all but there are some ways to really plan this out okay if you're not a great planner like me always that will help you so a sinking fund this is key and this is good for things that you know are coming so whether it's a vacation replacing a car christmas a wedding so what you do is you figure out okay here's the amount we want to spend on this big purchase that's coming up in eight months or 12 months and how much do we need to save per month so when we get there we have the money for it that's what a sinking fund is and then last but not least like we said earlier create that line item in your budget called miscellaneous so this is going to help you so again sinking funds you can prepare emergency funds the things that you can't prepare prepare for and they're like really big but that miscellaneous will help get the catch-all throughout the month again putting those things in there that you forget about whether it's kids birthday parties or even taxes because maybe you have a side hustle and you forgot about that uh monthly subscriptions you know all the stuff we're talking about if you forget any of that that miscellaneous category is there for you and if you've not been budgeting and you're like what what is all this you want to check out every dollar okay every dollar is the best budgeting app out there you can go to ramseysolutions.com every dollar or just go to the app store download it and really really start to plan around this because all of this overspending we're talking about it can happen and especially if you're not intentional so just being aware of what's going on having a plan for your money is going to give you control and that is what i want for you guys i want you to take control of your money and create a life you love you

Channel: The Rachel Cruze Show

Views: 33,040

Keywords: the rachel cruze show, the rachel cruze show youtube, money, budget, how to save money, budgeting, personal finance, rachel cruze, save money, how to budget, debt, saving money, save, how to make money, ramsey, finance, how to get out of debt, debt free, 3 Places You Overspend (Without Even Knowing It)

Id: 891JE1LlBA0

Length: 16min 39sec (999 seconds)

Published: Mon Jan 17 2022