How I cut my credit card bill in half: 4 Tips for Budgeting in the Bay Area

The major response I received when I first told people I was moving from Seattle to the Bay Area was “Do you know how expensive it is to live in the Bay?” (That’s also the same response I received when I first told people I was moving from San Diego to Seattle). While I’m titling this post “Budgeting in the Bay Area,” this really is more of a post for anyone that is moving to a place with a higher cost of living. I’ve officially lived in the Bay two months now, and have managed to cut my credit card bill in half. Without further ado, let’s hop into the tips.

4 Tips for Budgeting in the Bay Area

Figure out how much you’re actually spending on what each month

Do you know how much you spent last month on utilities? or coffee? or brunch? To be totally honest, before moving to the Bay Area I was paying my credit card every month, making sure that the charges were correct, and moving on. It wasn’t until I downloaded Mint (the budgeting app) until I really understood where my money was going every month.

*Note: I use Mint, but there are plenty of other budgeting apps out there.

Figure out how much you should be spending on what each month.

In business school, no one taught me how much I should be spending on rent, food, and all my other expenses. When you don’t know what you should be spending, it’s hard to know if you’re on track with your spending. This budget calculator is a good place to start. Depending on your lifestyle, the exact budget breakdown will change. Traveling may mean more to you than dining so take the calculator with a grain of salt.

Ask yourself the following questions

1. What are my priorities?
2. How do I keep myself accountable?
3. How much do I want to save every month?
4. What areas do I need to focus on?
5. Am I ready in case of an emergency?
6. What do you want vs. need?

Some general best practices

• Make a meal plan –  Going out to eat for lunch during the week can really add up. Meal prep for the week on Sunday’s and that will help you cut down during the week so that you can brunch on the weekend.
• Shop with a friend – My biggest hack thus far is going shopping with a friend at Costco and splitting groceries. You’ll get a lower price because #bulk, and it makes shopping more fun.
• Scout your closet – If you’re a shopper, little purchases here and there can add up. Shop your closet and get creative!