Most of us aim to save as much money as we can. Everyone has goals to achieve or things we all dream of owning, such as a home for our family, cars, etc.
However, this may seem impossible when your budget is tight or when your income is below par. With low income, saving is not a priority, and if it is, it comes as the last option on the list.
You need money to save money, right? How the hell can a person save money when they are damn near broke?!
These are all valid questions, and what I found is no matter how low your income is, it is still possible to save a reasonable amount of money to help you meet your financial goals in the long run.
Still don’t think it’s possible? Take a look at the best strategies for saving money on a tight budget.
1.Settle High- Interest Debt
For you to make reasonable savings, start by paying off debts that attract high-interest rates such as personal loans or credit card loans since they can make you pay outrageous fees and interest.
This can only be achieved if you have a good plan regarding debt payment. If several debts are yet to be paid, prioritize to first paying off ones that impose high-interest rates. Once you have settled such debts, try to avoid getting sucked back into the high-interest debt loop, particularly credit cards.
If you are looking for ways to kill your debt Dave Ramsey the money-saving guru has a great book called “The Total Money Makeover” it will change your life!
2.Cut Down Your Biggest Expenses
Nothing is more challenging than trying to save money when your broke. You may have no idea about the expenses to even cut down on to boost your monthly savings.
A good way to see what can be cut back is to create a list of your monthly expenses and see what can be tweaked.
For instance, if you constantly going out to eat (even fast food) then it would be wise to start cooking meals at home or meal prepping for the week. This will be a big help to your savings.
The main focus should be to minimize your expenses as much as you possibly can. This may be uncomfortable at first but really think of what you can downsize or cut back on.
Cable TV, landline phone, subscription services or any other reoccurring bills that you can live without should go, while you are trying to save money.
Also, if you own a home, try to figure out whether refinancing your mortgage for a lower rate is beneficial or not. Depending on the size of your home, you can also attempt to downsize to something smaller. If this isn’t possible just focus on the expenses that you can confidently cut back on.
3.Switch to Cash
Although it might not be possible to pay your utility bills or rent in cash, switching to cash can help you to reduce your spending on things such as entertainment and groceries.
Switching to cash for your daily expenses can help you to limit your spending when shopping. The use of debit cards, especially when shopping, can give you the tendency to overspend because it makes it harder to keep track of your spending when you are constantly sliding your card.
Switching to cash means you have to prioritize what you spend money on since your budget is limited.
This helps you to analyze the best way possible to spend the available money, especially when it comes to grocery shopping. Keeping a set amount of cash in your wallet will force you to stick to the budget.
It can be daunting to stick to your budget, especially if you’re someone who is bad with money. One way that makes it a little easier is looking for coupons and discounts on things that you were already going to buy. You will be surprised at how many deals and discounts are out there when you look for them.
I am not saying you have to be a coupon queen(a crown I wear proudly) but definitely get in the habit of looking for a deal before you pay full price for anything.
Also, opt for an off-brand whenever possible. No matter what you are buying, sometimes its best to go with cheaper options. Generic shit is our friend! Say it with me…
5.Save Your Spare Change
Yeah, this an old school tip but it’s still so effective! Basically, every penny you get should be saved- literally!
Seriously, spare change can really add up. Think of how much of your change goes to waste, lost in couch cushions, under the bed, basically everywhere but in your wallet.
Saving all your forgotten change can help with a vacation fund or even just something for a rainy day. So start stuffing that Piggy Bank!
6. Get A Side Hustle
If you’re unable to cut costs further than you have done before, I would highly consider looking for alternative sources of income by starting up a business to increase your earnings.
Apart from your full-time job, having a side hustle can help you to raise additional income to meet your financial needs.
There are several side hustles that you can do from the comfort of your home during your spare time. Find out what you are good at and capitalize on that. Freelancing and blogging are some of the online hustles that you can maximize your savings or even double your current income.
If you are not interested in starting your own business, but would rather just find ways to earn extra income each month, that works too! I mean, have you not seen our site!? It’s incredible all the ways there is to make money online. Start here for our daily work from home jobs and you will see what I mean!
7. Utilize The Library
Yes! The library is a freaking treasure trove of free shit! If you need an entertainment fix, you can get fairly recently released movies on DVD and Blue-ray. Some libraries have video games you can rent as well.
The library has so many hidden freebies, from helping you get information on housing, programs to lower your bills, school and more. Most libraries have a career center or an area where you can talk to someone about getting help with things.
I would say the library is definitely one of the best ways of finding just about any resource you need, so take advantage! It could really help you out in the long run!
8. Sell! Sell! Sell!
When you are on a tight budget, any extra money you can get is a good thing. A genius way of getting this extra cash is by selling things that you no longer need or use.
That means get rid of clothes, shoes, appliances, furniture- anything! The more clutter you have around the house just means more opportunities to make money.
Use websites like E bay, Craigslist, Facebook Marketplace or Poshmark to sell your sell. It’ll feel good to finally ditch all your old stuff, and getting paid for it makes it 10x better.
9. Dollar Store-a-holic
The dollar store has come a long way from how it used to be. Dollar stores in 2020 have so many useful everyday household things- all for a dollar!
You will save way more money shopping at a dollar store for most of your home goods versus shopping at a traditional store.
Now, granted some dollar stores can range between $1-20 dollars but if you have a Dollar Tree near you, then you’re golden! This place seriously has everything!
Some are name brand but most are generic. Just remember our motto “generic shit is our friend!”
10.Pay Yourself First
When your budget is tight, it may seem hard to try to put some money aside for yourself. The truth is, in order to get ahead you have to make a sacrifice to get the ball rolling. From now on, every time you get paid get, put some money to the side.
Whether it’s $5 or $10 dollars every two weeks, just put it to the side and forget about it! Seriously, pay yourself first and just keep saving!
Before you know it. you’ll have enough for a rainy day or at least enough to build a small emergency fund for yourself.
There you have it home-based hotties, 10 ways to save when your budget is tight as hell. Have you used any of these tips before? What helps you save money in a crunch?