Did you know that the average American has over $30,000 in debt excluding their mortgage?
No wonder that more people find themselves on a tight budget feeling like they can’t save up money.
Are you dealing with an unexpected hit to your financial situation?
Keep reading to learn 10 genius ways to save money on a tight budget.
10 Ways to Save Money On a Tight Budget
When you have a tight budget and want to either save money or start a savings account you can get overwhelmed thinking about it. Especially if you recently found yourself unemployed or in need of using social security disability you can follow these useful tips to help you.
Thankfully there are ways to save money on a tight budget and there are even tools designed to help you if you choose. It’s not impossible.
One of the first places you want to look at how much money you’re spending is food. Eating out can add up faster than you think and going grocery shopping can add up quick when you go without a plan.
If you find that you’re eating out weekly limit this to once a week or once a month. That small change will make a big difference in how much money you will save. If you want to start a savings account you can take the money you were spending on eating out and put it into a savings account.
When you go grocery shopping go with a plan and a list. Don’t show up at the grocery store with no idea what you will be cooking for the week. You can even search the ads for the local grocery stores and find the best deals on food.
Before you make any kind of purchase commit to comparing prices. Thanks to the internet you have the power to compare prices at the tips of your fingertips. Whatever you end up saving between the amount you paid and the amount you usually pay you can put into your savings account.
If you have a car you know that gas to fill it up can add up. Prices fluctuate so you never know how much you will be paying per gallon. If you have the option to use public transportation this might be a better option.
If riding a bike is an option you can look into buying a bike to run your errands or get you around. You can even get rid of your car if it’s an option and save money on registration annually, and insurance prices every month.
Another option to save money with your car is if you only use your car for a certain commute you can sell your car and opt for using services such as Uber or Lyft instead.
4. Sell Extra Stuff You Have
If you start going through your closets, drawers, and garage and notice a ton of items you don’t use or haven’t used in months you can list them on online sites to sell them. You can also have a garage sale and whatever you don’t sell then you can list.
You’ll be surprised at what people buy that you probably forgot you had.
5. Living Space
Maybe you can find a more affordable place to live if your lease is up or you’re on a month to month basis. If you own your home maybe you can rent a section out through an online market like Airbnb.
If where you live it’s allowed or if your situation allows for getting a roommate this is a way to cut your living expenses in half. You can use that extra money to start a savings account and watch it grow.
6. Auto Insurance
Shopping around for insurance can save you hundreds of dollar annually. Insurance is one of those things that are competitive. If you have a low deductible maybe increasing it for six months to a year will save you a significant amount of money.
If you have the option of bundling renters and auto instance this can be another monthly saving.
7. Your Wants
To reach your savings goals you might have to cut back on your wants 100%. You want to go out to eat but it’s not truly a necessity then you can cut back on it. Evaluate everything you decide to do because if it’s not a life or death situation you can more than likely put it off.
While using cash isn’t as practical it can help keep you within your budget. Use cash for your grocery bill and for your entertainment expenses. If you run out of your monthly allowance or are running low it will force you to make choices when you’re at the grocery store or choosing your weekend entertainment.
This will also help you prioritize your money.
9. Cut Back In Every Monthly Category
Make your list of monthly expenses and include everything in the list. Include cable bills, gym memberships, etc. Find ways to save any amount of money even it’s $5 in each category.
Every bit that you cut out of each category you can put into a savings account.
10. Pay off Debt
Monthly debt such as credit cards and car payments will eat a big chunk of your monthly income. Work on getting rid of your high-interest debt so that you can have more money to save each month. Getting rid of debt will help you grow your savings fast because all that money you usually pay in debt you can save it instead.
Take That Tight Budget
As you can see you can still save money and start a savings account while you’re on a tight budget. There are endless ways to save money on a tight budget if you’re willing to save.
Are you looking for some more savings inspiration and ideas? Check out our saving money section article for a ton of tips!