Ways to Save Money When You're Living on a Tight Budget

• Author: Jenny Wolff
• Posted: 2024-09-20

Finances are like a roller coaster ride – sometimes you're up and sometimes down. But if you don't have much money, knowing where to start when saving can be hard. Fortunately, there are still plenty of ways to make the most of what little money you have. Here are some top tips for saving money when you don't have much:
 

Make a Budget and Stick to It

A budget is an essential tool for saving money, and it's especially important when you don't have much. Create a budget that works for your financial situation, and then stick to it. When creating a budget, you should track all expenses, including fixed costs (rent/mortgage payments, car payments, etc.) and variable fees (food, entertainment, clothing, etc.). Once you know where your money is going each month, you can decide which expenses are necessary and which can be cut down or eliminated altogether.

To make it easy to stick to your budget, you can use budgeting apps that track expenses and help you stay on track.
 

DIY Everything You Can

Do-it-yourself projects can be a great way to save money, and you don't need to be a convenient person to try them. Whether it's cleaning, home repairs, upcycling furniture, or even making your clothes--there's a whole world of ingenuity out there waiting to be explored.

For the truly brave, you can even take on larger projects like building your shed or fixing a car. The money you'll save by taking on these projects is often more than worth the effort.
 

Take Advantage of Free Resources

We live in a world of free resources, so why not take advantage? Seek out free or discounted entertainment options like parks or outdoor concerts. Make use of library resources to save money on books and movies. Use online coupon sites to get deals on everything from groceries to clothing.

And when it comes to entertainment, there are plenty of free options like streaming services, podcasts, and online gaming.
 

Cut Out Unnecessary Purchases

One of the easiest ways to save money when you don't have much is to cut out unnecessary purchases. This can be anything from that mid-afternoon latte to that new pair of shoes you don't need. Every little bit adds up, so try to be mindful of your spending and only purchase what is necessary.

If you find yourself making a lot of impulse purchases, try to be more conscious of the items you're buying. Ask yourself if it's something you really need or if you're just buying it on a whim. If it's the latter, put the item down and walk away.
 

Automate Your Savings

Set up a regular deposit into your savings account each month so that you are automatically saving money – even if it's just a small amount. This way, you won't have to think about it as much, and you can focus more on your budget and stick to it.

Tools to automate your savings include automatic transfers from your checking or savings account, round-up apps that transfer the difference when you make a purchase, or high-yield savings accounts that offer a higher interest rate on your deposit.
 

Shop Smart and Compare Prices

Before you buy something, shop around and compare prices between different stores or websites. You might be surprised at the difference a few cents or dollars can make on more significant purchases. You can also look for sales and promotions to help you save on the purchase. Additionally, consider buying secondhand or used items as an alternative to new ones.

Also, you should first check if store loyalty programs or rewards cards will give you discounts when shopping.
 

Avoid Debt Whenever Possible

It can be easy to slip into debt when you have little money. Try to avoid borrowing more than you need, and if you do have to take out a loan, make sure you can realistically repay it. Keep credit card spending to a minimum and always pay off your balance on time.

In cases where a loan is unavoidable, do your research to find the best terms and rates. Compare offers from different lenders and read through the fine print before signing up.

Saving money when you don't have much can be challenging, but there are plenty of ways to make the most of your situation. With some creativity and smart budgeting, you can start building up your savings, no matter how small the amount.