Tips for Finding $500 Extra Money in Your Monthly Budget

With gas prices rising, food costs increasing, and electricity bills on the climb, finding extra room in your budget is like giving yourself a raise to offset those growing expenses. Most people are surprised to learn that the average person is spending over $500 a month without even realizing it. At Scott Credit Union, we call this “invisible money”—funds you’re spending but aren’t actually enjoying or really using.

Financial freedom doesn’t always require a higher salary; sometimes, it starts with a better audit of the money you already have. If your car payment or monthly bills are feeling heavy, it’s time to stop giving your money away for free.

Watch our latest Who Knew? SCU video to see where $500 might be hiding in your monthly budget. 

 

 

Try These Money Saving Hacks to Up Your Savings Goals

Use these money-saving hacks to give yourself an immediate monthly raise.

Audit Subscriptions and Recurring Monthly Charges

Most people assume their biggest bills are the main problem, but $10 recurring payments are often what drain a budget. While one streaming service seems small, the average American actually spends over $200 a month on various subscriptions.

• Evaluate, Consolidate, and Cancel: Check your bank statements for the gym you went to once in January, “premium” apps, or news services you never read.
• Switch to Annual Plans: For the services you use and love, see if moving from a monthly to an annual plan offers a discount.
• The “Find a Hundred” Trick: Many people find $100 a month just by hitting “unsubscribe” on things they don’t use. It’s basically like finding a hundred-dollar bill in your pocket every single month.

Make Strategic Cuts on Spending Habits

We all get tired but being busy often comes with a hidden “Convenience Tax.” Delivery apps can add a 40% markup to every meal once you factor in service fees, delivery fees, and tips.

• The $150 Shift: If you order delivery twice a week, you’re spending an extra $150 a month just on the delivery, not even the food. That’s about the cost of an entire phone bill.
• Go Pick It Up: You don’t have to stop eating out or give up your daily coffee. Simply choosing to pick up your order yourself saves enough to jumpstart a savings account.

Negotiate Your Bills and Services

Many people view car insurance and cell phone bills as “fixed” costs, but loyalty is often rewarded with a “Laziness Tax.”

• Shop Your Rate: If you haven’t shopped your insurance rate in two years, you’re likely overpaying. With SCU Insurance Agency, you can compare great rates from more than 40 providers for auto, home, pet insurance and more!
• Ask for Better Rates: Many people save money just by switching providers or asking for a better rate on internet or phone lines.

Remove the Temptation to Shop

One of the easiest ways to find extra money is to stop it from leaving your wallet in the first place. You can do this by unsubscribing from ecommerce emails.

Removing unwanted emails from your inbox helps eliminate the temptation for impulse spending.

Switch to Cash Back Cards

Be sure your daily spending is working for you by utilizing a debit or credit card that offers rewards or cash back on essential purchases. 

With CashBack Checking from SCU, you can earn cash back on the spending you’re already doing! 

Frequently Asked Questions About Budget Auditing

Do I have to give up my daily coffee to find extra money?

No, you don’t have to stop buying coffee or cut out everything you enjoy. The goal of a budget audit is to find “invisible” money—cash you’re already spending on things you aren’t actually using or that have a more affordable rate.

How much can the average person save with a budget audit?

Who knew that the average person is spending over $500 a month without realizing it? By auditing recurring digital costs and avoiding “convenience taxes” on food delivery, many members find they can give themselves a significant monthly raise.

Is it really worth the hassle to shop for new insurance rates?

Yes! Loyalty to a provider is often rewarded with a “Laziness Tax,” meaning your rates stay high while new customers get better deals. With SCU Insurance Agency, you can quickly compare rates from over 40 providers to see if you are overpaying.

What is the “Convenience Tax”?

The Convenience Tax is the extra amount you pay for being busy, such as the 40% markup often found on delivery apps once service fees and tips are added. Choosing to pick up your own food instead of using a delivery service can save the average person $150 a month.

Your $500 Monthly Raise Is Waiting

By ditching unused services, picking up your own food, and shopping your fixed insurance rates, you could potentially give yourself a $500 monthly raise.

Ready to look at your monthly financial statement with a magnifying glass? Check out Scott Credit Union’s free financial education materials and the next video in our Who Knew? SCU series.