Money is tight for many families right now, and that's pushing some to take a harder look at their monthly budgets.
The truth is, many of us are wasting money without realizing it. The key is pinpointing where it's happening. Consumer savings expert Andrea Woroch said the first step is simply knowing where your money is going.
"When it comes to those categories where expenses fluctuate, like gas or groceries or entertainment, these are the ones where consumers and families kind of lose track on how much they're spending," Woroch said.
WATCH: Learn how to track and change your spending habits
Start by writing down all your expenses. Once you have a clear picture of your spending, it becomes much easier to find places to cut back — but don't try to tackle every category at once. Woroch recommends focusing on one area per month to avoid burnout.
Where to start: Track every expense
Before you can cut back, you need to know where your money is actually going. Woroch recommends:
- Writing down all your expenses to see the full picture
- Using 3-month averages or last year's year-end statements to spot patterns
- Paying close attention to fluctuating categories like gas, entertainment, and kids' activities — these are where overspending is easiest to miss
Budgeting apps can make this process much easier. Woroch recommends
- Rocket Money
- You Need a Budget (YNAB)
Both link to your accounts and break down spending by category, so you can quickly see where your money is going each month.
Groceries: One of the biggest budget drains
Groceries top the list of categories where families overspend — and food waste is a major reason why.
- Americans waste about $1,200 a year in produce alone
- Roughly 40% of purchased food is thrown away due to spoilage or expiration
"I would say groceries is one of those top categories that families overspend on without realizing," Woroch said.
Meal planning is one of the most effective ways to fight back.
"Meal planning is going to allow you to shop with a plan, with a purpose, and cut back on those extra purchases," Woroch said.
How to shop smarter:
- Plan meals once a week before you go to the store
- Base recipes on what you already have at home
- Create meal theme nights like Taco Tuesday or Pizza Friday to simplify shopping and build family habits
- Use overlapping ingredients across multiple meals to reduce waste
- Stick to your list once you're in the store
- Be cautious with bulk buying — while the per-unit price on produce or snacks may be lower, food can spoil before you use it, wiping out any savings
Apps and tools to stretch your grocery budget:
- Cook List — generates recipes from items already in your pantry or fridge and builds a "gap-only" shopping list so you only buy what you actually need
- Grocery store apps — most major chains offer digital coupons through their apps
- Fetch Rewards — scan your receipts to earn points redeemable as gift cards at Amazon, Target, Walmart and more
Subscriptions: The silent budget killer
Subscription services are another place where costs can quietly add up — sometimes without you even knowing you're paying for them.
"Maybe it was auto-enrollment after a trial, and they don't even know they're paying for it," Woroch said. "My kids actually signed up for Amazon Music Unlimited because they didn't have the control set on our Alexa device. And I was paying an extra 7 or 8 bucks a month for six months without realizing it."
How to take control of subscriptions:
- Check your Amazon account regularly for ongoing charges you may have forgotten about
- Monitor kids' devices to prevent accidental sign-ups
- Don't cancel right away — call first and ask about retention offers. When Woroch tried to cancel HBO Max, the service dropped her rate from $12.99 to $2.99 a month for three months just for asking
- Use a bill negotiation service — apps like Bill Shark and TRIM can identify unused subscriptions and negotiate costs on your behalf
Wireless plans: Are you paying for more than you use?
Most people with unlimited data plans only use about 15 gigabytes per month, thanks to free Wi-Fi at home, work and public spaces.
- Switch to a plan that matches your actual usage — you may be paying for data you never use
- For families with kids: consider pay-as-you-go options instead of adding children to a large unlimited family plan
Insurance: Rates that creep up over time
Insurance is another area where costs rise gradually, often without people noticing.
"You probably got a better rate when you first signed up, but they tend to go up year after year," Woroch said.
How to lower your insurance costs:
- Shop your rates every one to two years to make sure you're still getting a competitive price
- Bundle policies — combining home and auto coverage with one provider often unlocks discounts
- Raise your deductible if you have savings to cover it — a higher deductible typically means a lower premium
Monthly bills: Negotiate, then make your payments work for you
When it comes to monthly bills, a quick phone call can go a long way.
- Always ask about current promotions and reference competitor offers
- Give your current provider a chance to match any deal before you switch
And once you've negotiated your bills down, consider how you're paying them.
"There are some credit cards that will actually give you points or cash back when you use a card for utilities or various monthly bills," Woroch said.
A free tool to help you take control
A budgeting worksheet can help you pull everything together — tracking expenses, planning debt repayment and setting savings goals all in one place.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
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