Build Savings in Spite of a Tight Budget
- Author: Miguel Waters
- Posted: 2024-06-30
If inflation rates have made a tight budget feel impossibly small, you may have stopped trying to save money. You may be one of the many people who finds saving money to be impossible, especially if you grew up in a family that had a poverty mindset. The tips below can help you change how you think about money.
1. Block Out a Month for a No Spend
There are two basic components to a successful no spend. First of all, you have to commit to no unnecessary purchases. If you don't absolutely have to have an item, you don't buy it.
Secondly, while you're not shopping, you need to inventory your current possessions. Count the bottles of cleaning supplies under the sink. Figure out exactly how many pairs of shoes you own. Go through your closet and figure out just how many jackets or shirts you possess.
Dig into your current possessions and revel in them before you shop.
2. Learn Some Old-Fashioned Frugal Skills
Now is the time to learn to cook simple, filling and cheap meals. If you never developed a taste for pasta-based casseroles or rice and beans in any combination, now is the time to learn to cook.
Start simple. Learn to scramble eggs. If you know how to make coffee and toast, you've got breakfast covered. Learn to make real oatmeal, not the pre-flavored packets. Add apples and brown sugar for roughage and sweetness.
3. Pick Up a Side Job
Side jobs should be a source of short-term pain. The goal is not to force you to work 70 hours a week for the rest of your life. Instead, look for ways to make money when everyone else is spending money, such as driving for a rideshare.
Gigs that include tips, such as food and grocery delivery can be incredibly helpful. If you do need to spend money, get in the habit of paying cash. If you have to tally up your purchases to confirm that you have the cash to cover a shopping trip item, you will shop more carefully.
4. Set Up an Account at a New Bank
Before you look for a new job, set up an account at a new bank. You can choose either savings or checking, but do NOT get a debit card. You want to use this account as a place to stash all the income from that second job. You also want to make it very difficult to pull cash out of this account.
The point of setting up a bank account that is a pain in the neck to withdraw from is to prove your poverty mindset wrong. If your personal truth is that you suck at saving money, you need to force yourself to change your viewpoint. Routing every dollar from that second job into a new account will help you see that you can, in fact, save money.
5. Shop for groceries early
Discounted items usually get tagged and put out early in the morning. If you eat meat, take home your bargains and put them right in the freezer as they're probably close to their "use by" date. Dairy products can also be found for a very good deal.
Discounted produce will require some flexibility. You may get a great deal on a bagged salad, but you probably need to eat it within 24 hours. Leave some room in your meal plan for these deals.
6. Learn to Meal Plan
If you can't save money but you can afford restaurants, you can save money. Sorry to be the bearer of bad news, but too many people are completely unprotected for even small money emergencies because they paid for over-priced restaurant food.
Again, view this as temporary pain. Saving now means access to restaurants again in the future. Meal planning allows you to look at
- your schedule for the week
- what's on sale
- which foods you have on hand
If it's going to be cold and rainy, go through the cupboards and see if you can make soup, stew or chili. If it's going to be hot and humid, mix up a batch of egg salad and make sure you have crackers and bread. If you can't have food prepared, make sure you have a plan for the week so you don't have to be a creative cook when you're tired and hungry at the end of the work day.
