Do you have a hard time saving money?
Do often wonder “How can I save money on a low income or fixed budget?”
If so then these tips on how to save money on a tight budget might be just what you need to help you get a start on boosting your savings account.
By making some small changes or creating some new habits you can start adding to your savings in a big way.
One misconception when it comes to trying to grow your savings is that you have to do it all that once. But the key for anyone to increase the amount of money they are able to have in their savings account is to make little changes and create habits to help put more to savings.
Open A Savings Account
If you are looking to save money, you need a place to put what you save.
One of the best ways to put away your money that you save is to deposit it into a savings account.
While savings accounts won’t have the best interest rates compared to potential investment returns. It is a safe place to put your savings without having a risk of loosing any of your money.
Set Money Saving Goals
A great way to motivate you to work at setting new habits is to set goals for yourself.
And saving money is one of those things where goal setting can help you out greatly.
Pay Attention to Each Area of Your Budget
Anyone who wants to save money needs to have a budget.
If you are trying to cut corners on your finances and don’t have a budget yet, go make one now.
When you have a budget it is easier to see where you are spending money. And it makes it easier to see where you can cut your spending for each budgeting period.
At the end of each month, sit down and analyze your budget.
If you are already on a tight budget or limited income, by looking closer at your expenditures, you might find places where you can cut expenses and put that amount to your savings account.
Some examples could be that you could trim down your groceries. Or maybe you have multiple streaming services you are paying for each month when one is only needed.
Analyzing you budget every few months you might be able to keep finding more and more areas where you can cut more money from your outgoing costs and add that to your savings.
Pay Yourself First
One of the best ways to ensure that you have money to put into your savings each and every paycheck is to pay yourself first.
Set aside a certain percentage of your paycheck and put that in your savings account before anything else comes out of your paycheck.
Usually the standard rule of thumb with this method is to set aside 10% of your paycheck. But if you cannot do 10%, even 5% will get your closer to your goals.
Another way you can help yourself with making sure you put money into your savings first is to set up a direct deposit to your savings account for the amount you want to add for each pay check.
Start Comparing Prices
Any time you have a budget and are trying to save money anywhere you can, comparison shopping is a must.
For any purchase look around to see where the best price is for the product.
You can compare prices for just about anything, from household furniture, appliances, to groceries.
While paying attention and trying to find out who has the best price will take more of your time, it will pay off when you can put the difference back into your savings account.
Use Cash for Your Spending
It has been shown that when you use a card, no matter if it’s a credit card or a debit card, you will spend more money.
By using cash you pay more attention to the money that you spend.
Using methods, like the cash envelope method, to use cash for your daily spending can help you stick to your budget and spend less.
Save Extra Paychecks
If you are on a bi-weekly or a weekly paycheck then you will find there will be months with extra paychecks.
People who only get paid on the 1st or 1st and 15th won’t benefit from this savings trick.
If you find yourself with an extra paycheck during the month, instead of spending it on extra stuff that isn’t in your month to month budget, put the extra paycheck straight into your savings account.
On a bi-weekly paycheck or weekly paycheck at the end of one year you will be able to add an entire months worth a pay to your savings. This is a great trick to help beef up an emergency fund if you are trying to build one for a certain amount of months worth of expenses.
Refinance Student Loans
If you are one of the 45 million people in the US that has part of the $1.6 Trillion student loan debt, then you might have a hefty monthly expense with your student loan payments.
On some occasions it can be helpful to refinance your student loans to help cut your monthly expenses and help you save more money each month.