How to Save Money on a Tight Budget

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Overview

With the hard economic times, most households usually find it difficult to save more bucks. Whether the household has one or two sources of income saving some dollars has become a tall order for most families. If you are operating on a tight budget, this is not the end of the road for you as you can still save some money on a monthly basis. With these savings in place, you will not have to worry about emergencies and other risks that might come unawares. This way, you will be able to have some peace of mind irregardless of the challenges that you might going through. To learn how to save money on a tight budget, read this article and you will be good to go.

1. Ensure that you review your budget

How much did you spend last month? This is one question that most people can hardly answer. After all, most of them end up spending money simply because they have the money with them at hand. Whether it is cash money or plastic money, most people end up spending it without any worry in the world since it is already available.

Although there is no harm in spending one’s money, there is a need for you to review your spendings. By reviewing your previous month’s budget, trust that you will be able to track where you spend more money and thus reduce it where necessary.

2. Create a budget list

As you go for your next shopping, there is a need for you to have a budget list of the items that you intend to purchase. Whether you want to shop for tomatoes from your nearest local grocery store or want to purchase a pair of trousers from the nearest boutique, there is a need for you to have a budget list so that you can avoid impulse buying. By doing so, you will only buy what you need and thus save money on a tight budget.

3. Moderate the way you use your credit cards

Gone and never to come are those days that we used to shop with cash only. Nowadays, one can shop using a credit card and enjoy more convenience. However, if you are not careful with credit cards, chances are that you might end up overspending. Such is the case as you might not essentially know the balance left once you purchased an item.

Supposing you are operating on a budget and are looking for a way to save money, consider reduce the number of times you pay using a credit card. Instead, carry some cash so that you can only make payments with the only money you have at hand.

4. Lower your cell phone plan

Nowadays, most people have invested in different handsets so that they can keep in touch with those they love. For these handsets to work well, you need to subscribe to a cell phone plan from your preferred service provider.

When it comes to cell phone plans, some are costly, while others are more affordable. If you are operating on a tight budget and want to save money, try to downgrade your cell phone plan. Although your new cell phone plan might not have all the features that you desired, be certain that you will have managed to save a few dollars that month.

5. Reduce the intake of fast foods

One ways to save money on the food you eat is to reduce the intake of fast foods. Whether it is chicken or fries, be certain that these food items can end up making you spend more money unawares.

Since these food items are sweet, chances of spending several dollars on them daily are very high. To avert this situation, think of taking natural foods that make you fuller for longer. This way, you will not have to rush to the nearest hotel to purchase these snacks. Consequently, you will be able to save money on a tight budget.

6. Do away with bad habits

Some of the bad habits that can make you spend huge sums of money is drinking alcohol, smoking cigarette, among other behavior. Since these drugs are addictive, you might find yourself taking them nearly on a daily basis.

If you have to go for the finest product all the time, your pockets will go dry. To mitigate this situation, do away with these bad habits and embrace healthy lifestyles. In fact, avoiding alcohol and cigarettes will not only allow you to save money on a tight budget but also improve your health condition. This will equally help lower the cost of hospital bills in the long run.

7. Look out for deals whenever you want to shop

One way business people use to lure customers is to introduce deals on various products from time to time. Thankfully, these deals allow you to purchase items at a relatively lower price. If you are operating on a tight budget, consider taking advantage of these deals so that you can save a dime. The more deals you consider, the higher the chances of saving more money.

8. Try to reduce your energy bills

Modern technology has made it possible for most homeowners to invest in a number of appliances such as the HVAC, dishwashers, freezers, clothes dryers among others. Although these home appliances allow you to enjoy more convenience, they can be responsible for high energy bills if their usage is left unchecked.

For instance, if you are not using any of these appliances, it does not hurt to unplug them. By unplugging them, their power consumption will be reduced significantly. Better still, invest in energy-saving bulbs so that you can reduce power consumption in your home.

Lastly, if you happen to receive your monthly energy bill from your utility company, try to negotiate for a better deal. Either way, you will manage to save a few dollars even your budget is tight.

9. Pay yourself first 

Once you receive your salary or wages, most people tend to rush to pay bills, purchase different items and so much more. While this is not a bad idea, paying yourself first works magic when it comes to saving money.

Typically, paying yourself means saving a certain percentage of money first. Thereafter, you can budget the remaining amount on the items or undertakings that you want to engage in. You can pay yourself first with an aim of achieving a certain long term goal. To get started, you can set up an automatic bank transfer so that your money gets saved almost instantly after your employer pays you.

10. Compare prices whenever you go for shopping

Whether you are going to shop for a pair of shoes or want to purchase a smartphone, it is imperative that you avoid stopping to shop at one shop only. Instead, compare the prices that different retailers offer for their products and then choose the one that suits your needs. Chances are that you might come across a good deal and save more money. Although this exercise might take time, trust that you will get value for your hard-earned money.

11. Consider having a 50-30-20 budget

If you are operating on a tight budget and would like to save more money, consider creating a 50-30-20 budget. To put this into perspective, 50% of your income should be channeled towards the items that you need or recurrent expenditure.30% ought to go towards your wants and other expenses. Finally, 20% should go to savings. Irregardless of what you earn, trust that you will be able to save a fraction of your income and thus be good to go.

12. Look out for refurbished items

Although purchasing a new item is a good idea, buying a refurbished item works magic for those who are operating on a budget. This is because refurbished items come with almost the same features as new items, while at the same time come at budget-friendly prices. 

For instance, if you want to purchase a refurbished phone, you can get one at $50 or thereabout. If you were to buy it new, you have to part with at least $100 or thereabout. Sometimes, it can exceed this amount depending on its model. Therefore, it makes more sense to purchase a refurbished item instead of a new one.

13. Cycle or walk wherever you can

Instead of having to pay bus fares all the time that you want to go to walk, try to walk or even use your bicycle to ride to work. This option is ideal for short distances. Besides allowing you to save more money, you will have ample fresh air and also be able to perform some exercises.

14. Have a savings jar back at home

Besides saving some money in a bank account, consider having a savings jar in your house. Unlike other methods, this one is quite easy to implement. However, you have to be discipline to put some spare change in that saving jar all the time.

For optimal results, ensure that you put some pocket change in that jar every now and then. Over time, you will be able to save more money unawares, even when you have been operating on a tight budget for months.

Conclusion

From reviewing your monthly budget to having a saving jar in your house, there is an array of methods that can help you save money on a tight budget. By having more savings, you will no longer get into debts anytime you need emergency funds. Also, you will have some funds to develop yourself or even carry out some projects later in the year. To learn more about how to save money on a tight budget, consider visiting Our site .