This piece is part of my 2016–2026 archive migration. Some original formatting, content, and external links may be missing, changed, or not be optimized.
At the end of every month, review your spending and CUT!
Each month, take some time to review your budget and spending categories to have a clear picture of where your money is going.
If you don’t feel like manually tracking your expenses, many banks now offer free category breakdowns in your account.
Don’t like how your money looks lately? Check your budget.
Quick Win: Subscriptions
When you’re cutting your expenses, your subscriptions are the best and first place to look. These little locusts will eat away at your available free cash.
The average consumer spends $273 per month on subscriptions, up from $237 in 2018. This extra 15% equals an additional $430 spent yearly (Source: ZDNet, Sep 21, 2021).
Ever sign up for a subscription but forget to cancel it?
Ever sign up for a subscription but stop using it?
Stop wasting money. Cancel those little f*ckers.
Mitigating Budget Bloat Is A Holistic Process
Cutting through your subscription category may clear up some bloating, but it may not eradicate all of it.
Most people have a lot more excessive spending disseminated throughout other categories.
If you’re not careful and don’t review your budget often, you’ll always wonder where tf your money went at the end of each month. Furthermore, you’ll give away thousands of dollars every year instead of putting those dollars to work for you 24/7 via investing.
The 15 Top Spending Categories For Americans
According to The Motley fool, most Americans spend their money each month in about fifteen categories. These categories include:
Housing
Transportation
Personal insurance and pensions
Healthcare
Groceries
Entertainment
Restaurants and meals away from home
Cash contributions
Apparel and services
Education
Miscellaneous
Personal care
Alcoholic beverages
Tobacco/smoking products (e.g., cannabis and vaping)
Reading
Pets (Bonus)
Technology: phone, wifi, tablet (Bonus)
Taxes (Bonus)
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Several categories on this chart are optional or higher than they need to be – especially for those trying to be more conscientious of their spending.
If you’re in debt, you could use a little break from spending to recalibrate your finances and get back on track to a healthy place. Here are some example categories that can always use a breather:
Entertainment
Smoking
Dining out
Overpriced housing
Apparel
What’s Your Breakdown?
The chart above reviews a breakdown of the average American spending.
What about your budget breakdown? Do you notice higher spending in categories that could be significantly lowered? What can be cut temporarily? What can be cut permanently?
This content is for informational purposes only — not professional advice. Consult a qualified professional before making any major decisions.