What if you could save money on even the tightest budget? Everyone agrees that it’s good to save money for emergencies and rainy days. However, it’s tough to save money when you don’t have much money to begin with! Fortunately, we put together an awesome guide for how to save money on a tight budget. Continue reading to discover all our secrets!
1. Cut the Cord
Finding ways to save money on bills means finding what you spend too much on. And one of those things is likely your cable bill!
Many people spend over $100 a month on cable. And what do you get in exchange? Very few features and no good programs when you turn on the TV.
This is why cutting the cord is a great way to save money. You can replace $100 monthly cable bill with a $9 monthly Netflix bill and be just as happy.
In fact, you can add several monthly streaming subscriptions and still save quite a few bucks compared to paying for cable.
2. Little Expenses Add Up
It’s easy to notice big things like a major cable bill. But your monthly budget might also be suffering “death from a thousand cuts.”
For example, many people grab lunch and/or coffee every day at work. This usually translates to spending at least $10 a day for five days a week.
At the end of the month, you’ve spent $200 or more. And you could have saved most of that money by bringing your own lunch and brewing some coffee in the office.
It all comes down to understanding your daily spending habits. Identify the frivolous things you can live without and then cut those things out of your life.
3. Serious Budgeting
Wondering how to save money on bills? You can actually steal a great tip from the business world by creating a zero-balance budget.
This is a fancy term for determining the bare minimum you need to get by each month. You add up things like rent, utilities, bills, and food to get this number.
To save money, this number now becomes your goal. Every month, you should find ways to trim different expenses and get closer to that zero-balance budget.
The truth is that once you know how much you need to survive, everything else is a luxury. And this knowledge makes it easier to start removing luxuries.
4. Catching Deals
What’s the first thing you should do before you make a purchase? Simple: check online for any possible deals.
Many stores offer their own special deals program (like Target’s “Cartwheel”). And there are also third-party organizations offering deals on various items (such as Groupon).
And there are also good, old-fashioned coupons available both online and offline. It’s worth taking a few minutes to find some great deals before you grab groceries: the savings really add up!
5. The Loan Shuffle
One of the biggest impediments to saving money is credit card bills. And if you miss a payment or two, the interest rate skyrockets and your payments get even worse.
A solution to this is to pay off the high-interest credit card with a personal loan. As long as the loan has a lower interest rate, you still come out ahead.
If you’re worried about getting a loan with bad credit, you shouldn’t. It’s entirely possible for you to get guaranteed approval on a loan that will help you take control of your finances.
A similar trick is to do a balance transfer from one credit card to another. You may find promotions where the new card has zero interest for a certain period, making it easier for you to pay off debts.
6. One Debt at a Time
Do you know how paying off debts is a lot like eating an elephant? You have to do it one bite at a time.
If you have multiple credit cards and/or loan debts, paying extra on them all probably seems very daunting. That’s why you should focus on the one thing that has the highest interest and pay it off first.
Once you have done that, you can take whatever monthly amount went to that payment and apply it towards another debt. This creates a kind of “snowball” effect where you end up with more money that can pay off more bills.
Eventually, you’ll be debt-free. And that makes saving money easier than ever!
7. Gig It Up
For better or for worse, we now live in the “gig economy.” Instead of offering a handful of full-time jobs, more and more employers rely on workers who just need a part-time “gig” to make extra money.
This can work to your benefit. After all, it’s easier to save money when you’re bringing more money in!
Some people prefer work-at-home opportunities. For example, those with writing talent can find a number of freelance writing jobs online.
Others integrate a side job with their main job. You may drive for Uber a couple of hours after your shift ends, or deliver for Uber Eats on your own lunch break.
Whatever your talent, now is the time to make the gig economy work in your favor.
8. Major Changes
So far, we have focused on the little things you can do to save money. However, you can save money more quickly if you are willing to make some major changes in your life.
For example, are you and your partner each making a car payment? Consider selling one of the cars and cutting your car bills in half.
Does your home have a spare room or basement? Consider renting it out to someone to create a steady stream of passive income.
Such changes aren’t for everyone. But they provide a way to instantly save more money for your financial goals.
How to Save Money On a Tight Budget: The Bottom Line
Now you know how to save money on a tight budget. But do you know how you will celebrate your eventual financial freedom?
We bring news every week focusing on technology and lifestyle. To plan your upcoming financial celebration, check out our travel articles today!