7 ways to save money on a tight budget
Saving money when you are on a shoestring tight budget is very much possible and imperative too.
One unexpected expenditure can have a huge impact when you are having limited income or running on a tight budget. Then it becomes so much more important to find a way to start saving money so that unexpected expenses aren’t so difficult to deal with.
Getting yourself into the habit of controlling your expenditure and start saving doesn’t come naturally to most people. But this can surely be developed through practice and we are sure you will instantly see the results by following these seven simple ways to save money.
Here’s a closer look at each one of them:
- Shop smarter
Stop buying things without looking around for the best price. Whether you are shopping offline or online, just make a commitment to compare prices, look for coupons, and discounts in the newspaper or coupon websites. Then, buy the lowest possible one. In order to make a difference, don’t stop just there you need to put the difference of amount you paid and the amount you would have paid without comparing prices and applying discount coupons into the savings account. Slowly and gradually, you will see that the small sums will add up.
- Always keep the change
It seems old-fashioned to many, but it is a necessity to take the loose change out of your pocket, those drawers, your purse or your car tray and save it in a jar/ your savings box at home. Also, look out for ways to add more money to your mini jar. For example, as and when you withdraw cash from the ATM, put 10 -15 percent of that amount in the savings jar. Every six months, count the accumulated money and add it in your savings account.
- Pay yourself first
If you adopt the strategy to wait until everything else is paid and save whatever money is left over, then we would suggest to reconsider your way. Deliberately putting your paychecks into your savings account and make a recurring weekly transfer to cover all the necessary expenses. You may then think and decide whether any extra money needs to be left in the account to cover any upcoming expenses or be treated as extra savings.
- Save with purpose
It is important to have a clear reason for your savings, like whether the money is for an upcoming vacation, some emergency need, some future investment and so on. But by being conscious about the reason you are saving money will make it very easy for you to use your money for your planned expenditure and not just on anything which you have not thought about.
- Stop using credit cards
Switching to pay in cash can lead to huge savings. Believe us or not, using credit and debit cards to make fund you’re living expenses and then utilizing your extra cash on making the credit card payments, you will never be able to achieve your saving goals.
- Create a budget and challenge yourself
While fixing a budget can be difficult, but it is the best way to become a disciplined saver. Start by defining your fixed expenses, and then look at your needs for other expenditures like food, gas, clothing, entertainment, etc. Define a number for weekly expenses and challenge yourself to not cross that defined budget.
Set a specific amount, such as $90 a week, and take that cash out from the bank at the beginning of the week. Use that money for the week and try not to allow yourself to dip into other funds. Then, try to go down to $90 or $80 per week to see what you really need.
Once you become accustomed to living on your budget, you’ll be able to save and achieve all your financial goals.
- Stay committed
Many financial and budget experts recommend that you save 20-30 percent of your earnings each year, but we know that is not an easy thing to do. It happens with most of us when we prepare an ambitious savings plan, something happens in the first few months that usually discourage saving – for example, a child needs braces or the roof needs repair.
But if you continue to be on the savings track with discipline, you are more prepared to deal with future expenses more efficiently that may unexpectedly arise.
