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You’re working hard at your job day after day and you’re far from extravagant, yet it’s a strain to pay bills and you’re falling short on savings goals.

At this point you may well wonder, am I making enough money? Keep reading for some helpful ways to tell if you should be making more money.

10 Red Flags That Signal That Your Income Is Too Low

Do you frequently ask yourself whether you should be making more money — or you feel as if you’re not making money work for you? If so, it’s possible you aren’t making enough. Let’s take a look at some factors that indicate someone needs to be earning more in order to thrive financially.

1. Not Being Able to Pay Your Bills

As long as you aren’t renting a luxurious high rise or leasing a fancy car you truly can’t afford, you should be making enough to pay your basic bills. It can be difficult to save money with a low income. But if you’re working full-time to cover things like rent, car payment, health care, and utilities, that’s a sign you need to earn more money.

2. Using Your Credit Card for All Expenses

There’s nothing wrong with using a credit card to pay for expenses if you can afford to pay your credit card bill off in full when your monthly statement arrives. That’s a great way to earn cash back and credit card rewards.

A problem arises if you need to use a credit card in order to cover expenses because you don’t earn enough to buy essentials like food and personal hygiene items (this theory does not apply to unnecessary purchases like designer clothes).

3. Not Being Able to Have an Emergency Fund

Having an emergency fund can help consumers prepare for financial emergencies that no one expects. From job loss to medical bills to car repairs, there are certain financial hurdles we can assume we’ll need to clear one day, but it’s hard to predict when they’ll come and how much they’ll cost. If someone can’t build up an emergency fund to provide a buffer in a financial crisis, then that likely means they’re living paycheck to paycheck.

4. Paying Only the Minimum on Debts

As mentioned, turning to a credit card to cover essential purchases can be a sign of not making enough money. This can lead to high-interest credit-card debt, which can be hard to pay down without making extra payments. If you can’t afford to make extra payments on a credit card or other form of debt, increasing your income can make it possible to make those extra debt payments and save money on interest payments.

5. Not Being Able to Cut Anything Else

If you take a cold, hard look at your budgets and realize you can’t cut any more expenses because you are only paying for essentials (and ideally there should be room in a budget for a couple of fun purchases too), then that’s a sign you need an income increase, because living on such a tight budget isn’t sustainable long-term.

6. Not Being Able to Build Savings

The good news is you are motivated to save money, but when you are living paycheck to paycheck, you can’t put money aside, even though you know that saving is important.

7. Making the Same Wage Despite Company Growing

If your company is growing and flourishing, in part because of contributions made by you and other workers, you may deserve to earn more than you’re currently making.

8. Not Being Able to Reach Financial Goals

If you are earning enough money and sticking to a budget, then in theory you should be able to make slow but steady progress toward your financial goals. Failing to do so means you’re coming up short on salary.

9. Consistently Struggling to Make Ends Meet at the Beginning of the Month

Many people start to run out of spending money at the end of the month after they’ve paid all their bills (especially if they were hit with unexpected expenses), but if you are consistently struggling to make ends meet at the beginning of the month, this is a sign you aren’t making enough to pay your essential bills.

10. Worrying About Money Consistently

We all deserve a good night’s rest, not lying awake worrying about how to pay the bills. If you are consistently worrying about money and trying to figure out how to tackle financial anxiety and stress, that’s a major sign you aren’t earning enough money.

Tips for Negotiating a Higher Wage With Your Employer

So you are constantly wondering, am I making enough money? That’s a pretty good sign it’s time to have a conversation about a raise.

These tips will help you get ready to tell your boss what you need.

•   Research salary data. Before an employee comes to their boss with a request for a raise, they need to get an idea of how much workers in similar roles at other companies earn. Luckily, there are tons of online resources where workers share their job titles and salaries. It can also help to look at the salaries listed on current job postings similar to your position.

•   Make a list of accomplishments. Workers should approach the boss with the facts about how good they are at their jobs and why they deserve to earn more. Make a list that specifies some of your major contributions and use that to back up your ask.

•   Have an alternate ask. Sometimes a company truly can’t afford to give a good employee a raise. Perhaps they will have a lecture ready on the pain of inflation. In that case, is there something they can do to make your life easier? Can they make it possible to work remotely and save on commuting? Can they give you more PTO or a flexible schedule to help cut down on day care costs?

The Takeaway

If someone frequently wonders, am I making enough money, that’s a pretty good sign they need to ask for a raise. If they evaluate their spending habits and find they really are only buying essentials and still feel stressed about money, then it’s especially timely to ask for a raise.

If you’re worried about making enough money, it can also help to ensure the funds already in your bank account are working for you. When you open an online bank account with SoFi, you can enjoy an all-in-one Checking and Savings with no fees, automatic saving features, and a competitive interest rate when you sign up for direct deposit.

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall. Enjoy up to 4.60% APY on SoFi Checking and Savings.

FAQ

How do I know if I’m being underpaid?

Often, people have a gut instinct on whether they’re being underpaid. To back up that instinct, do salary research online to see what workers in similar roles and industries are earning.

How much money must I earn to feel it is enough?

Having “enough” money depends on your unique perspective. That being said, you need to be able to comfortably pay your bills and cover essential expenses without having to worry that you’re running out of money each month.

How can I save if I don’t make enough money?

It can be hard to save money if you don’t earn much more income than you require to get by. Consumers can always scrutinize their budget to see where they can cut back spending in order to save more. Too many streaming services? Or pricey lunches? Start there.

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Photo credit: iStock/nensuria

SoFi members with direct deposit activity can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a deposit to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.

SoFi members with Qualifying Deposits can earn 4.60% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.60% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.

Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.

Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2023 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

SOBK0622031

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Working from home is more common than ever. What was once a fantastic work perk has become the norm for many occupations. According to the Pew Research Center, 59% of workers who are able to work remotely continue to do so by choice in 2022, even as many others are returning to the office.

If you’re one of those fortunate enough to continue working from home (or have the option to), your budget probably looks a lot different than it used to. Commuting expenses turned into food delivery charges and wardrobe spending turned into exercise subscriptions. You might be trying to keep your home at a comfortable temperature in the middle of the day, which increases the cost of utilities. You may also have substantial costs maintaining a work-from-home office.

If you need to make some adjustments in your work-from-home (WFH) budget, check out these tips.

How Working From Home Affects Your Spending

Working from home changes what you spend money on — and possibly how much you spend every month. You probably expect to save on regular expenses that you no longer have like transportation and lunches out. But you’ll spend more in other areas such as electricity, heat, maybe decorating the space behind your desk chair for video meetings.

Here are some big expenses you may have already incurred:

Home Office Equipment

When you’re regularly working from home, the dining table may not be a great place to set up shop. Also, a chair that is meant for all-day sitting, aka an ergonomic chair, may lessen any stiffness or aching you feel in your back or neck.

If you’re a fantastic scavenger, you might have scored a desk and good chair for free, but most people spend anywhere between $240 to $2,500 on basic office furniture. If you needed to add an office to the existing space in your home via a remodel, you could have paid anywhere between $15,000 and $80,000.

Technology

Your company likely provided a laptop. But connecting it to a larger screen makes work easier on the eyes. And if you have a lot of programs open, two monitors are even better. Likewise, a full-sized keyboard and mouse help reduce the strain on your back and shoulders. And if you video-conference a lot, a ring light, external mic, and wireless headphones can enhance the experience — all of which are likely not offered by your IT department.

Fitness Equipment

If you’re not going out to work out in the gym, you may have invested in some fitness equipment such as an indoor exercise bike or treadmill as well as subscriptions for your at-home workouts.

Steps for Adjusting Your Work From Home Budget

More than two years into working from home (if you started when the pandemic did), you’ve likely made any big office furniture and technology purchases already. So now you just need to figure out how much more or less you are regularly spending. These steps can help:

Track current and pre-pandemic home and home-office expenses

Combing through your bank account and credit card statements, calculate what you’re spending on electricity, gas, water, internet, cell phone, landline, printer cartridges, paper, and office supplies for at least one month — and the same month in 2019. To get a better picture of costs, you may want to compute costs for the past three months and corresponding three months in 2019 (or even better, the past 12 months and corresponding 12 months in 2018 and 2019) and get an average. Now subtract your pre-pandemic costs (probably the smaller number) from your current costs. This is roughly how much your monthly home expenses have increased.

Track current and pre-pandemic office or work expenses

Include work clothes, shoes, dry cleaning, gas or other commuting expenses, lunch, happy hour bills, coffee drinks, and anything else related to work. Again, you can do this for one month this year and the corresponding month in 2019. Or for three months this year and pre-pandemic or last 12 months and corresponding months pre-pandemic — and calculate the average. Next, subtract today’s costs (probably the smaller number) from your pre-pandemic costs. This is roughly how much your monthly office or work-related expenses have fallen.

Compare your home costs to your office expenses

Do your increased costs offset your decreased costs so that you’re basically spending the same amount now than you did pre-pandemic? That’s great! There are no adjustments to make.

If you’re spending more now than pre-pandemic, find ways to save

Part of the increase is likely related to inflation, but you’ll still want to lower your home expenses that have increased. Find areas to target for making cuts, below.

Or perhaps you want to rethink working from home if your company is offering flexibility. Read on for WFH pros and cons to help you make the decision.

Recommended: How Much Money Should I Save a Month?

If you’re spending less now than pre-pandemic, find ways to grow your savings — and celebrate!

It looks like you are keeping more of your paycheck working from home. It’s no surprise, actually: average commute costs exceed $4,500 each year, and that figure continues to climb with rising gas prices. Of course, you could spend some of the freed-up disposable income, but you may be best off putting the money somewhere it can grow. Check out some ideas, below.

Ways to Trim Costs in a Work-From-Home Budget

If your WFH budget needs some recalibrating, here’s where you may want to look for costs that can be cut.

Utilities

Working from home means you’ll most likely see a bump in utility costs to keep everyone comfortable throughout the day. California residents, for example, used 15-20% more energy through 2020 than the previous year. To shave costs, consider taking energy-conserving steps such as shutting down your computer at the end of the workday and closing AC and heat vents and doors of unused rooms during the day.

Food

You’re likely spending less on lunch if you are making it in your kitchen. But are you? Or are you ordering in dinner more than before? Food delivery apps saw tremendous growth during the pandemic — as did online grocery delivery services. When looking for ways to cut expenses, you may want to limit how many times you order in a week — and stop having your groceries delivered.

Potential Impulsive Spending

According to a study of 2,000 Americans in 2020, the pandemic brought on a slew of impulse purchases, especially in hard-hit areas with shortages and price increases. At the time of the poll, the price of the average impulse buy was more than $180. Be aware of this whether you’re shopping online or in person.

Recommended: 33 Ways to Make Money From Home

What to Do With Saved Money From Working From Home

During the pandemic, the personal savings rate skyrocketed to as much as 33% — almost five times what Americans were normally able to save prior to the shutdown (7%). Working from home turned out to be a boon for the bank accounts of many. If you’ve been able to save as a result of working from home, you may want to consider making one or more of these moves:

•   Pay off debt

•   Start an emergency fund if you don’t have one yet

•   Increase your contribution to your retirement account

•   Park the money in a high-yield savings account

•   Invest through a brokerage account

Rethinking Working From Home

If your employer is letting you choose where you work and you are spending more now than you did before, you may want to reconsider working from home. Consider which advantages and disadvantages apply to you, and how much they matter to you.

Advantages of Working From Home

•   Flexibility

•   Better work-life balance

•   No commuting

•   Fewer office politics

•   More independence

•   Save on expenses like wardrobe, coffee runs, lunches with coworkers

Disadvantages of Working From Home

•   Lack of separation between work and personal life

•   Increased childcare or housework load

•   Many, many distractions at home

•   Possible less productivity

•   Weaker connections to coworkers

•   Isolated work environment

Figuring out how to make working from home work is no small task. Beyond the increased amount of juggling you’ll have to do, many struggle with how to stay productive working from home. Some people prefer the environment of a formal office.

The Takeaway

Working from home has its pluses and minuses — and one plus is saving money on all the expenses that come with commuting to work, having to be presentable, and eating lunch outside the home. But if your work-from-home expenses exceed those savings, you may want to look for ways to lower your spending — and possibly reconsider working from home (if it’s optional).

But if you’re saving more by working from home, you’ll want to figure out where best to sock away the money. If you decide you want to keep it liquid but still have it earn interest, SoFi high-yield banking offers a competitive APY with direct deposit. You’ll also pay no minimum account fees, monthly account fees, or overdraft fees.

Get the most out of your money with SoFi Checking and Savings.

FAQ

How much money do you save when working from home?

How much money you save working from home depends on your situation and personal habits. If you no longer have high transportation costs or pay less for childcare, you could be saving a substantial amount of money. If you’re spending more on utilities or food delivery while working from home, you may not save that much.

Does working from home cost more?

Working from home may increase costs in your utilities, groceries, and home office equipment. However, it may be cheaper if you had been paying a lot in transportation and wardrobe expenses that are no longer required.

Is it better or worse to work at home?

While some appreciate the found time from not commuting back and forth or freedom from not having someone breathing down their necks, others enjoy the structure and separate space that working from an office provides. The financial impact on your life will also vary according to your circumstances.

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Photo credit: iStock/AsiaVision

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2023 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

SoFi members with direct deposit activity can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a deposit to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.

SoFi members with Qualifying Deposits can earn 4.60% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.60% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.

Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.

Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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Summertime can lure us into spending more money simply because our usual habits and routines are disrupted. Kids are out of school and desperate for entertainment. Adults are eager to spend time outdoors after months of being stuck at home.

In the heat of the moment, it’s easy to forget that summer fun comes at a cost. To make the most of the season without breaking the bank, keep reading for 10 tips on how to save money in the summer and how to stick to a summer budget.

Why Saving and Budgeting in the Summer Can Be Tough

Holidays aside, many of us are satisfied spending the colder months curled up on the couch enjoying a succession of movie marathons. So when summer rolls around, we’re eager to get outside — and that increases the temptations to spend exponentially. Because while sun and surf are technically free of charge, the food, drink, and transportation costs that inevitably follow can steadily chip away at your summer budget.

Another reason that saving money in summer can be tough is the spontaneous nature of summer fun. Consider that last-minute happy hour invite to a new rooftop bar ($$). Or those friends who have an empty bedroom in their rental house by the lake ($$$$). The last thing you want to think about is your bank account. And the less advance planning that’s involved, the more likely it is you’re living beyond your means.

10 Tips for Saving in the Summer

Sure, small indulgences add up over time. But so do honest attempts to curtail overspending. Let’s look at 10 ways to save money and get financially fit for the summer.

Recommended: Where to Keep Your Travel Fund

1. Not Feeling Obligated to Plan a Vacation

From airfares to gas prices, travel costs soar during the summer. Planning your big trip for the fall, when prices drop, can make it easier to stretch a travel budget. The benefits aren’t just financial: You’ll enjoy fewer crowds and less sweltering temperatures. And you can still arrange a few fun yet inexpensive staycations for summer.

2. Finding Local Events in Your Community

Many communities host special summer events like outdoor movie nights and concerts, street festivals, and sports tournaments — most of which are free to attend. Make a point of checking out free events in your area. You may discover your neighborhood has more to offer than you ever imagined.

Recommended: Visiting National Parks on a Budget

3. Suspending Your Gym Membership

When the skies are clear, who needs an indoor treadmill? Pause your gym membership during the summer months, and go for a run in the park instead. You may save enough cash to book an affordable vacation in summer.

4. Using the Outside to Cool Your House and Car

Open windows before bed and early in the morning, and use fans to keep indoor air moving. You’ll cool your home without having to rely on air conditioning. You may even find you prefer the feel of no AC.

Did you know using your car’s air conditioning can reduce your gas mileage? On hot days, park your car in the shade and place a sunshade over your windshield to reduce the need to crank the AC during your next quick trip.

5. Planning Ahead Before Going to the Store

No matter the season, a shopping list can help prevent overspending at the market. After all, groceries take a major chunk of your monthly budget. In the summer, it’s natural to enjoy wandering around air conditioned grocers and big-box stores. But that strategy (or lack thereof) may lead to a cart filled with impulse purchases. Create a shopping list before heading to the store, and try not to stray from it.

6. Tracking Your Spending

Another seasonless tip for sticking to a budget is to track your spending, especially for unplanned events. Generally, when consumers track how they spend their money, they become more mindful of their purchases and actually find it easier to stick to a budget. (Bonus: They’re also more likely to catch fraudulent charges on their credit cards.)

7. Setting Budget Limits

Setting summer budget limits, on things like dining out and airfare, can help you squirrel away extra cash for next year’s big trip. That’s because budgeting is the leading strategy to help you reach financial goals. By seeing how much money is left over at the end of each week or month, you can earmark that amount for more long-term costs.

8. Utilizing Cash Over Credit Cards

Paying cash for summer activities can protect your budget in more ways than one. First, cash is more concrete: Forking over multiple Jacksons will slow your spending better than throwing down a card.

Second, if you can’t afford to pay off your entire credit card bill each month, relying on cash will help you avoid paying interest on the balance.

9. Suspending Unused Monthly Subscriptions

From streaming services to meal kit delivery, monthly subscriptions can really add up. It’s important to review subscription charges on a monthly basis to see which no longer make the cut. And because our habits change so drastically in the summer, you may find you can cancel or pause some subs until you need them again.

10. Planning Accordingly if You Are Vacationing

For families with school-age children, summer may be the only time they can take a real vacation. If you hope to take a summer trip, you’ll benefit from creating a special vacation budget that outlines how much you plan to spend for things like dining out, activities, hotels, and souvenirs. Going overboard now and then is only human, but setting a detailed budget makes it less likely you’ll overdo it.

Managing Your Finances With SoFi

To get the benefits of both worlds, you may want to open an online bank account with SoFi. You’ll be able to easily access your money with mobile banking and our network of 55,000+ fee-free ATMs, and with direct deposit, you’ll earn a competitive APY. Plus, you won’t pay any monthly fees or other account fees.

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall. Enjoy up to 4.60% APY on SoFi Checking and Savings.

FAQ

How can I save money on summer vacation?

Choosing less trendy destinations and creating a detailed vacation budget can make it easier to save money on a summer vacation. Avoiding travel around holiday weekends can also save you a bundle, as can postponing your big trip until after Labor Day.

Why is it hard to save money in the summer?

In a nutshell, our habits and routines change significantly with the seasons. Keeping kids entertained during the long school break, spending less time at home, and going on vacation can all tempt folks to hand over more cash than they should.

Where do budgets change the most during summer?

We all tend to spend a lot more on things like travel, entertainment, and dining out in the summer. Some less exciting costs can also run higher, like electric and water bills thanks to increased air conditioning and garden maintenance.

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Photo credit: iStock/Hispanolistic

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2023 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

SoFi members with direct deposit activity can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a deposit to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.

SoFi members with Qualifying Deposits can earn 4.60% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.60% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.

Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.

Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.

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A demand deposit account is a type of bank account that allows you to withdraw money “on demand,” without having to provide advance notice beforehand. Time deposit accounts only allow you to withdraw funds once the account reaches maturity.

Banks and credit unions typically offer both demand deposit and time deposit accounts, though you might know them better as checking and savings accounts (demand deposit accounts) and certificates of deposit, or CDs (a time deposit account).

These two types of accounts are designed to meet different financial goals. Understanding the difference between demand deposits vs. time deposits can help you decide where to put your money.

What Are Time Deposits?

Time deposit accounts are savings accounts that require you to keep your money in the account for a set time frame. They can also be called term deposit accounts or term deposits since the bank can specify the term that the money must stay in place.

If you’d like to withdraw money before the term ends, the bank may allow that. However, they will likely charge you a penalty fee. They may also require you to give them a certain amount of advance, either in writing, in-person, or over the phone. Once you open a time deposit account, you typically can’t add any additional funds at a later date.

How a Time Deposit Works

A time deposit works by effectively “locking in” your money for a set time period or term. During this term, your money can earn interest at a rate specified by the bank.

A certificate of deposit account is the most common type of a time deposit or term deposit account. Banks often offer CDs with varying maturity terms, which can range anywhere from one month to five years or more.

While your money is in the CD, it earns interest. Once the CD matures, you can do one of two things:

•   Roll the principal and interest earned into a new CD with different terms

•   Withdraw the principal and interest earned

If you take money out of the CD before it matures, the bank will likely impose an early withdrawal penalty. This penalty usually involves forfeiting some of the interest earned. The size of the penalty can vary depending on how early you withdraw the money and the length of the CD.

What Are Demand Deposits?

With a demand deposit account, you are allowed to put money into the account or take money out of the account when you want and without giving any advance notice. Demand deposit accounts include checking accounts, savings accounts, and money market accounts.

The money in a demand deposit account is generally considered to be liquid, or ready cash, and you can withdraw any amount (including the entire balance) at any time without paying a penalty. However, some banks may charge a fee if you exceed a certain number of withdrawals from a savings account within one month.

How a Demand Deposit Works

Demand deposit accounts work by allowing you convenient, flexible access to your money. The most common example of a demand deposit account is a checking account. With a checking account, you can deposit money, then access it by:

•   Using a debit card to make purchases online or in stores

•   Withdrawing cash at ATMs or through a teller

•   Scheduling online bill payments

•   Linking it to mobile payment apps

A trade off for this easy access to your money is that demand deposit accounts typically don’t pay high rates of interest, and checking accounts generally don’t pay any interest at all. While you can sometimes find an interest-bearing checking account, checking account interest rates tend to be on the lower side.

There are other types of interest-bearing accounts that fall under the demand deposit umbrella. They include: traditional savings accounts, high-yield savings accounts, money market accounts, and kids’ savings accounts.

Recommended: How Do Calculate Interest on a Savings Account?

Federal Insurance for Demand and Time Deposits

The Federal Deposit Insurance Corporation (FDIC) provides insurance coverage for member banks, which is passed on to account holders. The FDIC insures both demand and time deposit accounts, including:

•   Checking accounts

•   Savings accounts

•   Money market accounts

•   CD accounts

The standard FDIC coverage limit is $250,000 per depositor, per account ownership type, per financial institution. The National Credit Union Administration (NCUA) offers similar coverage for time and demand deposit accounts held at member credit unions.

Demand Deposit Pros

When comparing demand deposit vs. time deposit accounts, it helps to understand the pros and cons of each type of account.

Here are some of main benefits of demand deposit accounts:

•   They give you access to your money without being required to give the bank advance notice.

•   They offer multiple ways to manage and access money, including online and mobile banking, automated clearing house (ACH) transfers, direct deposit, ATM banking, and branch banking.

•   There is the potential to earn interest on balances and, in some cases, rewards on purchases.

Demand Deposit Cons

While demand deposit accounts can make managing money and growing savings convenient, there are some potential downsides to keep in mind. These include:

•   There may be monthly fees or other fees.

•   Since interest rates can vary, you may need to shop around to find the best rate.

•   Banks may limit the number of withdrawals you’re allowed each month.

Time Deposit Pros

Time deposit accounts can be a great place to keep your savings — if you understand how they work. Here are some of the advantages of opening a time deposit account:

•   They offer a guaranteed rate of interest, so there’s very little risk of losing money.

•   They typically offer a higher interest rate than you can get on a demand deposit account.

•   There are generally no fees if you leave the money in the account until maturity.

Time Deposit Cons

Opening a time deposit account could make sense if you want a place to park your money for several months to years and earn a higher rate of interest. But it’s important to keep these cons in mind:

•   You may pay an early withdrawal penalty if you need to take any or all of the money out prior to maturity.

•   There is often a minimum deposit required.

•   Most time deposit accounts do not allow you to make additional deposits once the account is open.

How to Choose Between a Demand and Time Deposit Account

Demand deposit vs. time deposit: which one should you pick? The answer will depend on your financial needs and goals.

You might choose a demand deposit account if you:

•   Want convenient access to your money via a debit or ATM card, online banking, mobile banking, or at a branch

•   Want to be able to earn some interest on your savings while still having easy access to the money

•   Don’t mind the possibility of paying checking or savings account fees

A time deposit account, on the other hand, may be more appropriate if you:

•   Want to earn a higher interest rate than you can get on a standard checking or savings account at a bank

•   Have a sum of money you don’t need to touch for the immediate future

One good solution is to have a mix of demand deposit accounts and time deposits. This might include a checking account (for paying bills and everyday spending), a savings account (to hold your emergency fund), and one or more CD accounts to fund your longer-term goals. Just be sure to pay attention to minimum balance requirements and fees for each account you open.

When choosing between different types of savings accounts and CDs, you’ll also want to consider the interest rate and the annual percentage yield (APY). The difference between the interest rate vs. APY is that the APY tells you the total amount of interest you earn on the account over one year. While it’s based on the interest rate, the APY also takes into account the compounding interest (when interest accrues on previously accrued interest) to give you the most accurate idea of what you’ll earn in a year.

APY, however, is not to be confused with annual percentage yield, or APR, which refers to what you can owe in interest charges on a loan.

Recommended: Fixed vs. Variable Rate Loans

The Takeaway

There are two key differences between demand deposit and time deposit accounts: how easily you can access the money in the account and how much interest the account earns.

Demand deposit accounts (which include checking accounts, savings accounts and money market accounts) allow you to withdraw money from the account at any time, whereas time deposit accounts (such as CDs) require you to deposit your money for a specific length of time. While demand deposit accounts offer more flexibility, they typically offer lower interest rates than time deposit accounts.

To get the benefits of both worlds, you may want to open an online bank account with SoFi. You’ll be able to easily access your money with mobile banking and our network of 55,000+ fee-free ATMs, and with direct deposit also earning competitive interest. Plus, you won’t pay any monthly fees or other account fees.

Better banking is here with SoFi, NerdWallet’s 2024 winner for Best Checking Account Overall. Enjoy up to 4.60% APY on SoFi Checking and Savings.

FAQ

What is the difference between demand deposit and time deposit?

The key difference between demand deposit vs. time deposit is access. With demand deposit accounts, you generally access your money at any time without paying a penalty or giving the bank any advance notice. With time deposit accounts, you generally can’t withdraw money until the account reaches maturity.

Which type of deposits with the banks are called demand deposits?

Demand deposit accounts include checking accounts, savings accounts, and money market accounts. Checking accounts can allow you to use a debit card, pay bills online, and manage money through online and mobile banking. Savings accounts are used to hold money you don’t plan to spend right away and may offer interest. Money market accounts combine features of both checking and savings accounts.

Why are demand deposits considered money?

Demand deposit accounts hold money that you can withdraw whenever you want. You can use this account to get cash, pay bills, make purchases, or complete other financial transactions.

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Photo credit: iStock/FG Trade

SoFi® Checking and Savings is offered through SoFi Bank, N.A. ©2023 SoFi Bank, N.A. All rights reserved. Member FDIC. Equal Housing Lender.
The SoFi Bank Debit Mastercard® is issued by SoFi Bank, N.A., pursuant to license by Mastercard International Incorporated and can be used everywhere Mastercard is accepted. Mastercard is a registered trademark, and the circles design is a trademark of Mastercard International Incorporated.

SoFi members with direct deposit activity can earn 4.60% annual percentage yield (APY) on savings balances (including Vaults) and 0.50% APY on checking balances. Direct Deposit means a deposit to an account holder’s SoFi Checking or Savings account, including payroll, pension, or government payments (e.g., Social Security), made by the account holder’s employer, payroll or benefits provider or government agency (“Direct Deposit”) via the Automated Clearing House (“ACH”) Network during a 30-day Evaluation Period (as defined below). Deposits that are not from an employer or government agency, including but not limited to check deposits, peer-to-peer transfers (e.g., transfers from PayPal, Venmo, etc.), merchant transactions (e.g., transactions from PayPal, Stripe, Square, etc.), and bank ACH funds transfers and wire transfers from external accounts, do not constitute Direct Deposit activity. There is no minimum Direct Deposit amount required to qualify for the stated interest rate.

SoFi members with Qualifying Deposits can earn 4.60% APY on savings balances (including Vaults) and 0.50% APY on checking balances. Qualifying Deposits means one or more deposits that, in the aggregate, are equal to or greater than $5,000 to an account holder’s SoFi Checking and Savings account (“Qualifying Deposits”) during a 30-day Evaluation Period (as defined below). Qualifying Deposits only include those deposits from the following eligible sources: (i) ACH transfers, (ii) inbound wire transfers, (iii) peer-to-peer transfers (i.e., external transfers from PayPal, Venmo, etc. and internal peer-to-peer transfers from a SoFi account belonging to another account holder), (iv) check deposits, (v) instant funding to your SoFi Bank Debit Card, (vi) push payments to your SoFi Bank Debit Card, and (vii) cash deposits. Qualifying Deposits do not include: (i) transfers between an account holder’s Checking account, Savings account, and/or Vaults; (ii) interest payments; (iii) bonuses issued by SoFi Bank or its affiliates; or (iv) credits, reversals, and refunds from SoFi Bank, N.A. (“SoFi Bank”) or from a merchant.

SoFi Bank shall, in its sole discretion, assess each account holder’s Direct Deposit activity and Qualifying Deposits throughout each 30-Day Evaluation Period to determine the applicability of rates and may request additional documentation for verification of eligibility. The 30-Day Evaluation Period refers to the “Start Date” and “End Date” set forth on the APY Details page of your account, which comprises a period of 30 calendar days (the “30-Day Evaluation Period”). You can access the APY Details page at any time by logging into your SoFi account on the SoFi mobile app or SoFi website and selecting either (i) Banking > Savings > Current APY or (ii) Banking > Checking > Current APY. Upon receiving a Direct Deposit or $5,000 in Qualifying Deposits to your account, you will begin earning 4.60% APY on savings balances (including Vaults) and 0.50% on checking balances on or before the following calendar day. You will continue to earn these APYs for (i) the remainder of the current 30-Day Evaluation Period and through the end of the subsequent 30-Day Evaluation Period and (ii) any following 30-day Evaluation Periods during which SoFi Bank determines you to have Direct Deposit activity or $5,000 in Qualifying Deposits without interruption.

SoFi Bank reserves the right to grant a grace period to account holders following a change in Direct Deposit activity or Qualifying Deposits activity before adjusting rates. If SoFi Bank grants you a grace period, the dates for such grace period will be reflected on the APY Details page of your account. If SoFi Bank determines that you did not have Direct Deposit activity or $5,000 in Qualifying Deposits during the current 30-day Evaluation Period and, if applicable, the grace period, then you will begin earning the rates earned by account holders without either Direct Deposit or Qualifying Deposits until you have Direct Deposit activity or $5,000 in Qualifying Deposits in a subsequent 30-Day Evaluation Period. For the avoidance of doubt, an account holder with both Direct Deposit activity and Qualifying Deposits will earn the rates earned by account holders with Direct Deposit.

Members without either Direct Deposit activity or Qualifying Deposits, as determined by SoFi Bank, during a 30-Day Evaluation Period and, if applicable, the grace period, will earn 1.20% APY on savings balances (including Vaults) and 0.50% APY on checking balances.

Interest rates are variable and subject to change at any time. These rates are current as of 10/24/2023. There is no minimum balance requirement. Additional information can be found at https://www.sofi.com/legal/banking-rate-sheet.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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Everyone buys groceries, but how much should an individual or household spend on food each month? Food is the third largest expenditure for Americans, and for those looking to cut costs, it can be a place where reductions are possible with some planning and budgeting.

In 2020, Americans spent an average of 8.6% of their income on food, according to the most recent data from the U.S. Department of Agriculture. Everyone is different when it comes to their personal food choices, household, and budget, so it’s difficult to come up with a goal amount for everyone’s monthly grocery bill. However, looking at averages across the country can help one figure out if they are within the range of other people in their region, age bracket, and household size.

Recommended: Does Net Worth Include Home Equity

Grocery Bills and Inflation

Inflation can have a big effect on the price of groceries, making it harder to stay within a budget and reduce one’s bill. Over the past year, the cost of groceries has increased by 10.8% . Some foods, such as meat, poultry, and eggs, have risen by 14.3%. This increase is partly due to inflation and partly due to food shortages caused by the COVID-19 pandemic.

Average Monthly Grocery Budget Bill for One Person or More

There are several factors that determine how much a person might spend on groceries each month. These include age, gender, how many people live in the household, and monthly budget. Another major factor is the region one lives in. Some areas have much more expensive food than others.

The most expensive city for groceries is Honolulu, Hawaii, where the monthly average grocery bill is $556.76. The least expensive city is Manchester, New Hampshire with an average of $183.00, according to Move.org. Other expensive states include Vermont, Alaska, and New York, while less expensive states include Kansas, Idaho, and Utah.

In addition to groceries, one’s overall monthly bill for food includes any snacks and meals eaten out. The averages below are based on an individual or family cooking all their meals and snacks at home, they don’t include meals eaten out. Averages look at foods many people commonly purchase, such as eggs, dairy, meat, bread, and produce items.

Family Size	Average Grocery Bill
1	$229-$419 depending on age and gender. Men and younger people have a higher average.
2	For a household with two people, the average grocery bill doubles to $458-$838. If a household consists of one adult and one child their bill is likely less than a household with two adults. Averages for children vastly vary depending on the age and gender of children, location, and budget. For each child under 12 added one can estimate an additional $143-$357 in their bill. If teenagers are in a household one can expect to add an additional $233-$344.
4	Averages for a family of four are based on two adults between the ages of 20-50, and two children, one aged 6-8 and one aged 9-11. The average grocery bill is $887 per month.

Particular Foods That Are More Expensive Now

As briefly mentioned, in the past year, some foods have risen in cost more than others, due to issues in the supply chain. These include meat, fish, eggs, and poultry.

Buying Groceries vs Dining Out

It’s up to each individual and family to decide how often to eat out or get takeout food and how much of their money to spend on dining at restaurants. In general, eating out tends to cost more than cooking at home, and it’s a good idea to keep track of and budget for or it can add up quickly. The USDA recommends spending about 4% to 5% per month on dining out. A couple ways to help save money on eating out are to pick up food instead of having it delivered, and to find discounts and loyalty programs for local restaurants.

9 Tips for Reducing Your Grocery Bill

In looking at the average grocery bills above, one might start to think that they are spending too much on groceries, if they didn’t already feel that way before. Here are a few tips for lowering one’s monthly grocery bill.

1. Make a Budget and Plan Ahead

Allocating funds for groceries in a monthly budget planner then making a plan for what to buy can help reduce one’s grocery bill. Meal planning and shopping lists can help with sticking to the plan.

2. Look for Discounts and Sales

There are many discount apps and coupons available for those who are grocery shopping on a budget. They are free and can help with reducing one’s grocery bill. However, some coupons can be tricky and actually cause additional spending, if they ask one to purchase two or more of an item to get the discount or they result in buying an item that wouldn’t have been purchased otherwise. Some stores also have sale days, especially after a big holiday, so those can be good days to go shopping.

3. Don’t Shop on an Empty Stomach

Avoiding impulse buying is another way to reduce one’s grocery bill. Studies have shown that shopping on an empty stomach leads shoppers to spend more and to buy high calorie foods that may be less healthy.

4. Consider Meal Kits

Although meal kit services may appear expensive, and some are, if they reduce the amount that one eats out at restaurants or the amount spent on groceries, that is a plus. Meal kits provide pre-portioned meals, so they prevent buying extra ingredients that go to waste.

5. Pay Attention to Delivery Fees

Having groceries delivered can be a great way to save time, and since it can help with sticking to a plan and grocery list, it can also help prevent impulse buys. However, delivery fees and tips can add up, so it’s important to factor those into monthly budgeting.

6. Shop at a Different Store

It can be easy to fall into a pattern of shopping at a certain grocery store due to convenience or their offering of foods one likes. But if that store has higher prices, it may be worth considering going to a different store for some or all of one’s groceries.

7. Create a Routine

Another way to stay on top of grocery budgeting is to create routines. This can help with sticking to a shopping list and making sure extra food doesn’t get purchased.

8. Buy Generic Brands instead of Name Brands

Many stores carry their own brands of food that are cheaper than big name brands. These items are very similar in taste and quality but have a lower price point.

9. Shop More Often

It may seem surprising, but going to the grocery store more often can help people spend less money than if they go on mega runs. The reason is that it avoids food waste because it’s easier to think about what will be eaten within the next few days than the next couple weeks.

The Takeaway

Since there is more flexibility in buying groceries than other expenses such as rent and other bills, cutting back on grocery spending can be a great way to save. If you’re looking to start making a budget, setting savings goals, or paying off debts, one money tracker tool to use is SoFi’s. The online app lets you connect all your banking and investment accounts so you can easily see what you are spending and saving all in one dashboard. You can create goals and set up automated savings and investments to secure your financial future.

Start making a budget and savings goals today.

FAQ

How much should you be spending on groceries a week?

The average cost of groceries for U.S. households is $102 per week. This varies greatly by location, age, and number of people in one’s household.

What is the average cost of groceries per month?

The average cost of groceries for U.S. households is $411 per month.

Examples of Popular Discounted Grocery Stores

Popular discounted grocery stores include Walmart, Smart & Final, Sam’s Club, and Trader Joe’s.

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Photo credit: iStock/andresr

SoFi Relay offers users the ability to connect both SoFi accounts and external accounts using Plaid, Inc.’s service. When you use the service to connect an account, you authorize SoFi to obtain account information from any external accounts as set forth in SoFi’s Terms of Use. Based on your consent SoFi will also automatically provide some financial data received from the credit bureau for your visibility, without the need of you connecting additional accounts. SoFi assumes no responsibility for the timeliness, accuracy, deletion, non-delivery or failure to store any user data, loss of user data, communications, or personalization settings. You shall confirm the accuracy of Plaid data through sources independent of SoFi. The credit score is a VantageScore® based on TransUnion® (the “Processing Agent”) data.

*Terms and conditions apply. This offer is only available to new SoFi users without existing SoFi accounts. It is non-transferable. One offer per person. To receive the rewards points offer, you must successfully complete setting up Credit Score Monitoring. Rewards points may only be redeemed towards active SoFi accounts, such as your SoFi Checking or Savings account, subject to program terms that may be found here: SoFi Member Rewards Terms and Conditions. SoFi reserves the right to modify or discontinue this offer at any time without notice.

External Websites: The information and analysis provided through hyperlinks to third-party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

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