Ways to save money on a tight budget

Rose May Pimentel in Tips and Advices

Aug 07, 2020 • 2 min Read

Saving money is an important part of personal finance. When your budget is tight, it’s difficult and challenging to save money, especially during the pandemic. But that doesn’t mean it’s impossible. There are many ways to save money.  You can develop simple and realistic strategies to save for your short and long-term savings goals.  It won’t be easy, but the reward is well worth it.

Below are ways on how you can save money on a tight budget.

1. Compare shops to find the lowest prices

Keep the receipt after making a purchase. It will help you find the best deals when purchasing in the future by comparing different stores until you find better prices for food, transportation, groceries, etc.

2. Save a percentage of your income

As experts would say, save at least a minimum of 10% from your monthly salary and if possible, do not spend it. With this routine, in a year, you’ll be surprised by the amount of money that you have saved.

3. Change your lifestyle

For some people, saving money is a miserable experience. If they missed out on concerts, travel, new clothes, cars, etc., they feel deprived and resentful. For others, they see money not spent today as a means to have a prosperous future and part of a strategic plan. Being careful about their spending is empowering.

4. Be wise enough when using your appliances

Start a reduction challenge. Turn off unnecessary lights, unplug unused electronics, and start using LED or solar lights.

5. Keep track of what you spend

Have a system in place to capture all your spending. Review your spending in the previous months, total up everything, and divide your spending into categories – housing, food, utilities, entertainment, shopping, savings, etc. With this, you can monitor your expenses and plan on how to trim it down.

6. Focus on getting out of debt

Getting rid of debt opens many doors. It won’t be quick and easy but sticking with this plan will get you out of debt.

7. Stop your bad habits

Stop spending on your bad habits like cigarettes and alcohol for they are very expensive. Also, say no to Impulse spending just because it’s a good deal. If you can stop for just a month or two, you may be surprised at just how much you saved.

Making small changes in your daily spending could make a huge impact later, and the best time to start saving is now.  Go commit, save money and money will save you!