Budgeting (MP) If you’re on a tight budget you need to know “How to Save Money” and you need it now. Most people don’t track their monthly spending and thereby spend more money than necessary. People would be surprised at the amount of money they already have to save, if only they knew where to look.
Plus, you can change from a “Spender” to “Saver” mindset. It’s doable for anyone. No matter how old you are, you can learn new habits. I’ll help you move from being a big “Spender” to a being a smart money “Saver” in no time. This can be easier than you think. You may need a little time and willpower, but it’s doable all the same. If you’re on a tight budget and you want help boosting your bank account, follow the strategies found below, and watch your money grow.
How to save money on tight budget ideas
Here are saving tips you can start today:
1. Review your status!
How to save money while living on a tight budget means gathering your latest statements from all accounts to create a net worth statement (your assets minus your debts). Then take a look at your cash flow (money in, money out) for the last couple of years, and use this information to set some goals. Reviewing your monthly income to know where you stand will help you with our next strategy…
2. Set goals
It may be difficult to save money on a tight budget, so it’s important to set clear goals. You need a purpose, and that may be to have an emergency fund, a vacation fund or whatever, but without knowing the ‘why’ is most important because it will stop you from dipping or double-dipping into your fund when you are short on cash. Set your goals, stay focused and do your best not to dip back into your fund.
3. Create a budget
While setting a budget on a tight budget can be tough, but it’s the best way to become a disciplined saver. Beginning on the first day of a new month, get receipts for everything you buy. Save and review receipts at the end of the month, and you will see clear where your money is going. Determine your living monthly expenses, such as food, gas, travel, clothing, entertainment, etc. Budget a number for monthly expenses and challenge yourself to stay within that budget. Set a specific amount, such as $125 a week, and take that out of the bank in cash. Only use that money for the week and try not to allow yourself to spend anything more. Then, bring that number down to $90 or $70 per week to see if it’s doable.
Making a commitment to comparison shop instead of impulse buying can save you money on a tight budget. Browse for coupons and sales online or in your local store. Then, buy the lowest-priced items. But, don’t stop there. Take the difference of the amount you paid and the amount you saved and put that money into your special savings account. Plus, buy in bulk. The more you buy at one time, the less you’ll pay for each unit, saving you cash in the long run.
5. Get a change jar!
Go now and buy a loose change jar and save until you deposit at your bank. I like the DE Digital ($17) or use an old filtered water bottle. You’d be surprised, putting aside fifty cents a day over the course of a year will help you save nearly $500. Gather all loose change out of your pockets, your change purse, in the sofa, and your car, and put it in the jar. Whew! we’re saving money now!
[hoot_box type=”success” color=”orange” icon=”fa-check”]Remember, careful budgeting can improve any financial situation as well as relationships. And we all know that fewer financial problems mean less stress. Working together on a budget can help a marriage or relationship. With money arguments being one of the largest causes of divorce, and breakups managing household budgets can relieve financial stress and make your life better all around.[/hoot_box]
6. Pay yourself first
Who’s more important than you – your creditors? I think not. Put your paychecks into a high yield savings account first, and then pay your bills later. Keep a certain percentage say 25% and what’s left everybody else gets paid out of the 75%. That paying you first. Make a recurring weekly transfer to cover all necessary expenses. Then decide each week on where any excess money should go. Preferably you’ll place that money in your special savings account.
7. Make it Automatic!
It’s much easier to save when you don’t have to rely on yourself to transfer funds into your savings account. Have your employer divide your automatic paycheck deposit into a checking account and a savings account. If you’re self-employed, schedule automatic transfers from your main checking account to your special savings accounts.
8. Eating Out!
One of the best ways to save money is to cook meals at home, so buy Martha Stewart’s “Dinner at Home” ($23). Your family will enjoy good tasting food, conversation, all the while saving money. Eating out a lot, especially with the high costs associated with drinks, and tips, can really add up. Especially, if you have a large family. The more you cook meals at home, and buy groceries in bulk, the more you’ll be able to live comfortably on a tight budget. Plus, avoiding snacks and drinks (including coffee) when you are out on the town will save money. They may seem cheap at the time, but $1 -$3 charges rapidly add up over time.
Find entertainment in your area by using your local newspapers or websites to learn about free parks, museums, film showings, sports events, and other activities your family can enjoy. Give up premium cable channels or better yet, cable altogether. It’s a lot cheaper to rent one DVD a week than watch a movie on premium cable.
How to save money on utilities can be done by using fewer appliances as possible. Also, conserve electricity, water, and heat, and kill your internet, cable, or phone bill. Your wallet will thank you for it later.