14 Ways To Save Money On A Tight Budget

Lagging wage growth and the ever-increasing inflation have made money management quite difficult. It can be hard to find a way that meets your needs and at the same time is not too damaging to your budget. Have you lately been dealing with a strained budget too? Are you trying to cut your costs but don’t know where to start? We have got your back. Here are 14 ways to save money on a tight budget which can help you spend less and invest more.

1. Make Small Changes In Different Budget Categories

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One way to cut your costs is to divide. Divide your spending so that you can easily divide your savings. This tip can help you see a considerable difference in your budget. The small changes that you can make include making your lunch instead of getting takeaway, brewing your coffee at home rather than taking a stop at Starbucks every day, reusing old clothes instead of getting new clothes for every occasion, etc. The right way to plan your budget is to use the 50/30/20 rule. According to this rule, you should allocate 50% of your income to essential expenses. When it comes to the remaining half, it can be spent 30% on the things you want and 20% on savings.

2. Don’t Overestimate Your Ability To Save

Money management is a tricky thing to do. There is a massive chance that you might overestimate your ability to save and underestimate your ability to overspend. This is where the problem can arise. The best way to increase your savings is to automate it. If you don’t already have a savings account, it’s about time that you get one opened. Moreover, you should also set up automatic transfers for this account. Automatic transfers will make sure that a selected amount of money gets away from your eyes as soon as possible. This will make sure that you save more money than you spend.

3. Allow Yourself A Single Subscription

Most of us subscribe to services that we don’t eventually need and we don’t even bother to unsubscribe them. Sounds surprising? Well, you might also be doing this. Do you read the newspapers that come to your house daily? Are you taking the gym classes that you subscribed for? This is exactly how you’re hurting your budget without even realizing it. Even if you are partially utilizing the services, it is recommended that you allow yourself only one subscription in order to cut down on your budget. Out of all the subscriptions determine the one that you are using the most. Allow yourself that one subscription and cut the rest.

4. Save Money On Food

Food is probably the easiest target, yet the most difficult item to cut down on. To save costs, some steps you can take include planning your meals and cooking in bulk. Following these steps will not only help you to cut down on the costs but will also help you to save plenty of time. Moreover, limit your restaurant dining and takeaways and learn to prepare your favorite meals at home. Also, consider buying from local farmers’ markets as they are usually cheaper.

5. Use Support Like Budgeting Apps

Budgeting apps are one of the most effective ways to save money on a tight budget. These apps offer support for people who are not too experienced when it comes to cutting down costs. You can easily minimize your spending and maximize your savings by using budgeting apps. The app will track your spending and even predict your future spending. Digit is a budgeting app example that automatically examines your bank account details and moves money to help you increase your savings. Another app that makes saving easier and more achievable for you is Chime.

6. Do A No-Spend Challenge

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Most people believe that refraining from spending for a certain time period will lead to a pent-up demand. While this might be true, doing this can also lead to a reevaluation of the purchases that you have postponed. As you reevaluate, there is a huge chance that you can avoid those purchases altogether. For instance, if you survived a week without buying a Coke, it can help you realize that you can do fine without consuming this luxury item.

7. Save Money On Utility Bills

When mentioning the steps to save money, reducing utility bills is necessary to include. Cutting electricity costs and water consumption bills is quite achievable. Many people dealing with a tight budget follow this step and see positive results. You can unplug electronics when they are not in use and turn off the unnecessary lights around your house. Moreover, you can also consider installing energy-efficient bulbs and appliances which will ensure minimum electricity consumption.

8. Refinance Your Mortgage

If you’re struggling with a tight budget, refinancing is a true opportunity for you. Decreasing your mortgage interest rate by 0.5% or more, might generate positive results for you. If you consider refinancing your mortgage, you can be able to save thousands of bucks over the life span of the loan. Saving money on mortgage payments will not affect the home’s payoff timeline but it will help you deal with a tight budget.

9. Set An Allowance Money For Yourself

Giving yourself a monthly allowance can help you save money on a tight budget. If you spend every penny of your income on necessities and savings, you might end up being miserable. There’s a chance you’ll experience a spending splurge if you stretch your willpower too much. To avoid this, allow yourself to spend a certain amount of money on fun things. Each month, spend this money on yourself guilt-free. This will prevent you from unplanned purchases.

10. Save Money On Transport

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There are multiple ways to save money on transport. Instead of using your car every day, you can consider options like biking, carpooling, or public transportation. Moreover, if you want to use your own vehicle, you can get it regularly manicured as this can help increase the fuel efficiency of your car. You should prefer buses and trams over taking a cab. Moreover, look for times when the surcharge is lower.

11. DIY!

There are different tasks for which we hire professionals unnecessarily without realizing. Focus on doing your tasks yourself instead of getting professional help. Be it home repairs or beauty treatments, you can learn everything and save a considerable amount of money.

12. Save Money On Rent

If you are a renter, one way to control your costs is to move to a smaller place. You can consider moving to a lower-cost area where rents are manageable. If you don’t have to commute every day or do a work-from-home job, moving to a cheaper place can save big bucks on your costs.

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This was our list of the 14 ways to save money on a tight budget. If this list was of any help to you, make sure to let us know in the comments.

Was this helpful? Also read: Best Shopping Apps To Save Money.