Are you on a tight budget and wondering how to save money? You are at the right place. In this article we are focusing on how to save money on a tight budget by implementing easy and practical ways.
Overspending has become habitual to many and we do it without noticing. We tend to spend without planning on what is necessary. Often at times, you will find yourself walking into a shopping store without a list of the budget items to purchase which simply means you end up buying a lot of stuff that you had not been budgeted for.
It’s possible to save money on a tight budget all it takes is for us to be intentional about it. For instance, you can save money by walking but with the convenience of using cars to move from one place to another, even very short distances walking becomes our last resort. Have you thought of asking for a better mobile phone rate or even switching your provider to a cheaper one?
There are many common habitual costs that don’t add value to your life. For example, buying a cup of espresso every morning on your way to work because it’s gratifying to you. In reality it’s not adding meaningful value to you. On the one hand, it is digging into the money that can go towards your savings. It’s also a pattern of behavior that you may struggle to break from. Take it from someone who would rather shave off savings to buy coffee. That used to me, my morning wouldn’t start properly without passing through Starbucks. Over time I have come to know saving money starts with a saving mindset.
Having a saving mindset is the key to save money on a tight budget. Once you put your mind to it you will be able to save hundreds or thousands of dollars from simple tasks. Below are practical money-saving tips that will help you cut on spending and budget for the better.
Have also highlight some of the most common ways people lose money on a tight budget. Easy money-saving tips you can implement on a tight budget. To see quick results add two or more of these money-saving tips on a tight budget into your lifestyle.
More money saving tips on a budget
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Smart money saving tips: 19 Ways to save $500+ each month
Let’s dive right in!
Reduce your utilities.
Research has shown than utility and grocery bills are one of the biggest expenses in most households. They leave many people’s pockets dry at the end of the month. Expenses such as rent, water, television, internet, electricity, and gas are some of the many endless bills we have to pay monthly. Some of these are necessities and cutting them out is impractical but there are so many ways you can reduce the bills in half.
Related post: 15 Easy and smart ways to save money on utilities
One way you can go about this is by reaching out to your utility company and asking them for ways or programs you can use to save money and most likely they will give you a ton of information that will help you lower your monthly bills.
Re-evaluating your bills involves maintaining the essential expenses such as rent, and doing away with expensive bills like cable. Other bills can be cut to manageable rates that you can afford which will make it easy for you to save money on a tight budget.
Related post: 18 Realistic ways and simple ways to save money on groceries.
Get value for your money
Am sure you have heard the famous saying “Cheap is expensive”. This calls us to be smart with our spending. Your spending should be channeled toward quality rather than quantity however difficult this may be, especially on a tight budget. A great way to save money fast on a tight budget is to focus on the sustainability and specification of the product you want to spend money on.
For instance, just because you have enough money for a car it doesn’t mean you have to get one. Well, it helps to have a car but you should consider things like car maintenance, fueling, insurance, etc. Before you spend a dollar ask yourself is it a want or a need. Is getting that new iPhone or a car a want or a need?
Review your spending
Being on a tight budget may require going through your spending to see which item costs you more money. Tracking your expenses is very key for you to save money fast. Are there recurring costs that you don’t need and you can easily eliminate? Identify the areas where you are spending more money and be creative on how you can cut back. The idea behind reviewing your budget is to make sure you identify all the potholes that suck your finances and deal with them.
Make a shopping list before hitting the store.
By now you must have heard this over and over again to a point it’s now a cliche. It’s arguably the oldest rule in the book about shopping. You should never walk into a retail store, a grocery store, a mall without a shopping list. You always run a risk of purchasing items you don’t need. Impulse buying had made so many people get into debt as they end up living above their means. A shopping list helps you to think clearly about any purchase you make.
Change your lifestyle
It is easy to get carried away by the pressures of life and what it has to provide. For instance, you might be drawn to eating out every other night, upgrading your phone, or even purchasing a new car that you don’t really need mainly because you are trying to fit in.
The first step to changing your lifestyle is to know your WHY. What’s your reason behind saving money. Your reason will your biggest motivator and will make it easy to save money on a tight budget easier.
Cut on entertainment costs.
Most people have more than one source of entertainment in their homes such as Netflix, Hulu, and Amazon Prime. All this for convenience but nowadays no one needs to have all that. Its money wasted that can go towards saving. With Netflix no one needs a cable, right? Look at your entertainment bill and identify those loopholes you need to tighten.
Cut out unnecessary expenses.
Do you have non-essential expenses you are spending money on? The things you can’t justify. For example, it doesn’t make sense to have cable, amazon prime, Netflix, Hulu, and YouTube premium at the same time. It’s a waste of money. You can simply opt for one only. It’s the small changes that make a huge difference and provides you with a great way to be more flexible with bills.
Do you have a gym subscription that you aren’t making use of? If that’s a yes, it’s time to let go. Gym memberships are crazy expensive and you can find better alternatives. There are so many YouTube fitness guru who are doing videos for free or even apps that offer free workouts which you can upgrade when necessary and it will still be cheaper than what you are paying for an actual gym.
A simple way to cut out unnecessary expenses is by reevaluating your bills. What bills are you willing to downgrade or cut out completely? Have in mind that you will have to make some sacrifices to save money fast on a low income. Look for cheaper alternatives.
For this to work, you need to ask yourself important questions, like what are you willing to sacrifice to save more money? Are you willing to cut our cable and add have that money go towards your savings?
Buy store brands
Many stores have opted to have their brands for most of the consumable goods, which are in most cases cheaper than the branded items. Buying generic products is one of the main ways to save money on a tight budget. Generic products are as good as branded items and if you go through the ingredient list, you will notice they are the same.
Generic products are equally good as the brand product so it doesn’t mean you are compromising on the quality. You might not want to buy everything generic but things like cleaning products, toothpaste, pasta, diapers, and seasoning are just as good as name brand equivalent.
Ask for a discount
The market appreciates when you reach a fair bargain for the product you intend to purchase. If you can strike a deal, then consider doing so. Another money-saving tip is buying in bulk because you get huge discounts. Most stores usually give discounts for products they are to phasing out.
Avoid social pressure
You may have experienced increased pressure from friends, peers, and trends to match up. Comfort and savings can be vicious enemies to co-exist within your wallet. However, it is within your power to balance the two sides and avoid the strains that may be driven by unseen forces from society. The desire to fit in is a major struggle for most people. For instance, using Uber to go everywhere instead of using public transport and getting a new phone every time there is an upgrade will only damage your finances. The days of keeping up with the Jonesses are far go.
Get a better interest rate for your savings account.
Do you have a savings account? Well, banks offer to multiply your money by a fixed factor for a given period when you get to save with them. The bank calculates the amount payable to you after a certain period by compounding the principal (deposit) with this rate. You realize then that these rates are crucial in increasing the amount of money you may receive when this time comes to lapse.
For instance, assume you deposit $1,000 into a savings account that pays 1% interest per year. Your interest payment for the year would be $10. If the bank loan your $1,000 to a business at an 8% interest rate per year, they will earn $80 in interest income. The difference of $70 belongs to the bank. Assuming the bank has $30 worth of expenses to pay for employees, property, insurance, and other costs, the banks profit from your money would be $40. You might want to consider using banks to save money and contribute to the growth of the economy.
Setting goals
Setting financial goals is an essential step toward saving. If you aren’t working toward anything specific, you’re likely to spend more than you should. You’ll then come up short when you need money for unexpected bills which might lead you to debts. Set goals that will make it a habit for you to stash away cash for your kitty.
To set your goals you need to map up a plan and decide your priorities. This helps you to stop spending aimlessly and to focus on what matters. A plan will keep you focused on your goals.
Earn extra income
There are so many ways you can make extra money nowadays which means you will get to save more money. For example, you can make extra money by taking surveys or doing website testing. Selling items you no longer want or need is another great way to save money on a tight budget. Go through old belongings and sell things you don’t use anymore. Not only does this helps to declutter but you make some cash that can go towards your savings.
Starting a side hustle will help you to make extra cash weekly or monthly which will put you in a better place financially. You will be able to reach your financial goals faster by saving money fast. Whether you are saving toward a vacation or maybe you want to pay off a debt whatever your reason is, a side hustle will for sure help you.
There are so many money making ideas you can start that require a minimum to no investment and no prior experience. One of the best side hustles is blogging. There are so many bloggers making more than $1500 per month and I know a few bloggers who are now making a six-figure income and they have quit from their 9-5 job. Check out this income report of 16 bloggers who are making money from their blogs.
If you are interested in starting a blog, here is a detailed step by step guide on how to start blog stress-free. You can begin with as little as $4/month.
Below are a few side hustle opportunities for you to check out.
18 Creative ways to make money fast this year
15 Stay at home mom jobs that’ll make you extra cash
9 Money making ideas that will make you rich
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Make use of cashback programs
Another way to save money fast on a tight budget is by making use of cashback programs such as Rakuten formerly known as Ebates. Rakuten offers you a great opportunity to earn money for shopping from your favorite stores and save hundreds as well. Has over 2500 popular stores such as Target, Macy’s, JcPenny, Amazon, all of which you can earn 40% cashback. If you shop online this is a must-have app.
Simply install the Rakuten chrome browser button and every time there is an offer you will get a notification of cashback possibilities. All you will have to do is to click the activate button.
If you want to make extra money from Rakuten you can sign up to be an affiliate here and you will get paid for people you refer to them. The more people you refer the more money you make. You can promote Rakuten on your blog or on social media platforms like Facebook.
When you sign up to Rakuten you will receive a $10 sign up bonus which you can transfer to your PayPal account or redeem for Walmart gift cards.
Sign up here for free and get $10.
Final thoughts on how to save money on a tight budget.
Saving money is key as it provides security, stress relief, and freedom. There are so many ways to save money, you just have to find the one (s) that works best for you and make realistic changes to your lifestyle.
