How to save money on a tight budget.
Even when you're on a tight budget, there are still ways to save money.
Saving money is not always the first thing on our minds, especially when we are trying to stick to a strict budget each month.
With these tips, you can begin to save money and set aside more money for the future. Even small alterations to your monthly budget can lead to a surprisingly large amount of savings in the long run.
1. Re-evaluate your budget
Take a month to reevaluate your spending habits. Make a detailed list of your monthly and daily expenses. Budgets can change regularly, and you may be able to expand your budget. Taking the time to reevaluate what you spend your money on regularly will allow you to understand more about what you need, and what expenses you can cut back on.
2. Cut back on your food bill
For most households, the food bill can drain a lot of your monthly budget. Try to spend less money on food you don’t need. Buy the generic brand instead of brand-name food. Instead of going out to eat, make a home-cooked meal. According to the article “Here’s How Much Money You Save By Cooking At Home” by Forbes Magazine, eating out at a restaurant is about five times more expensive than preparing a meal at home. Save money where you can and cut your food bill in half.
3. Drop some non-essential expenses
After re-evaluating your budget, you will probably recognise some purchases that were not a necessity. Remove some of those non-essential expenses that are more of a luxury. For examples of these non-essential expenses include the expensive cup of coffee, your weekly nail salon visit, or that new pair of shoes. out When managing a tight budget, removing some of those luxuries will save you a lot of money in the long run.
4. Create a money pot
Whether this is an old piggy bank from your childhood or a glass jar you had lying around, use this to store your spare cash. This will encourage you to keep the money in the jar instead of spending it. Only take the money out of the jar if it is an emergency. Over time, you may find yourself needing a bigger jar!
5. Check your direct debits
Direct debits are efficient because the money is taken directly out of your account every month, but this can result in unnecessary spending if you are not monitoring your payments. Reevaluate your direct debits and remove any payment that you don’t regularly use or need. For example, make sure you are regularly using your streaming subscriptions, your gym membership, and check to make sure you can still afford your charitable donation direct debit.
6. Find cheaper alternatives for big purchases
It is important to constantly compare prices to make sure you are getting the most out of your money. If you are not using your car enough, switch to public transportation. If rent is too expensive, move in with a friend and split the rent. These larger expenses are a large percent of your monthly budget, so finding cheaper alternatives can save you a lot of money.
Want to find more ways to save? Click here to read our blog about cutting down your impulse buys.
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