By Dr Dave Schalow, PhD, CLU, ChFC, CFA, CFP

Financial Success | November 1, 2026

Reducing an expense creates room in your budget without requiring an additional hour of paid work. The challenge is to find changes you can maintain, rather than designing a budget so strict that you abandon it.

Start with the numbers you actually have.

RECORD A MONTH OF SPENDING

For at least one month, record your purchases and payments. Include the small items. Use statements, receipts, or a budgeting tool so the picture is more accurate than your memory.

Then compare take-home income with expenses. The difference shows whether the month produced a surplus or a shortfall. Include a plan for irregular costs, such as repairs and annual bills, rather than treating every month as identical.

REVIEW THE CATEGORIES

Look at housing, utilities, food, insurance, transportation, clothing, entertainment, debt payments, and savings. Separate essential expenses from choices that have more flexibility.

Some useful places to investigate include:

• Planning meals and taking lunch to work.
• Reviewing unused subscriptions and memberships.
• Using the library and lower-cost entertainment options.
• Shopping from a list and comparing unit prices.
• Planning clothing and larger purchases ahead of time.
• Checking whether energy use can be reduced comfortably.

Compare insurance on coverage as well as price. A smaller premium isn't a saving if it leaves you with protection you still need. If you consider refinancing a loan, examine fees, the repayment term, and total cost—not just the new monthly payment.

PUT A PAUSE BETWEEN WANTING AND BUYING

A waiting period can help with a discretionary purchase. In my original approach, I suggested waiting 72 hours for purchases over a chosen threshold. Pick a threshold that makes sense for your household.

The point is to create time to compare the purchase with your priorities. You may still decide to buy it. At least it will be a decision instead of an impulse.

WORK TOGETHER

If you share finances, discuss the changes together. It is easy to see savings in someone else's hobbies and overlook your own. Aim for a fair plan that both people can support.

Choose a realistic savings target. A percentage can be a useful challenge, but there is no guaranteed amount every household can cut. Some budgets already have very little flexibility.

GIVE THE SAVINGS A PURPOSE

Decide where the released money will go: essential bills, a cash reserve, debt reduction, or another goal. Track the actual result after a month and adjust.

​A useful spending review helps you direct money toward what matters. It doesn't require eliminating every activity you enjoy.