22 Realistic Ways to Save Money on a Tight Budget
Last updated on September 21st, 2024 at 10:28 am
Are you looking for realistic ways to save money on a tight budget? Now here you are.
I not only save money for emergencies but also for fun time to enjoy my life, most people save for bad times only. It’s a good financial practice to have a life and money spent on you for fun.
No matter how little you earn it’s still possible to save up some money on expenses. You don’t have to save a lot of money to make figures in budgeting.
Savings are realized after a certain period of time but this happens with commitment to extremely controlling expenditure patterns. A lot of questions along the lines of where, how, what, when, and why must be answered in the process.
When you answer yourself right, definitely it’s not about how much you earn but rather how well you plan for what you earn to get the most out of it.
How to Save Money on a Tight Budget
It doesn’t mean that you must be earning a lot to save money, there are different ways to add figures to your savings or cut expenses. Without further ado, let’s get into how to save money on a tight budget.
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Use the No Spend Challenge
When you realize that there are certain things that you can forego without spending on them, skip the costs for at least a month to save more. Applying the no-spend challenge on a tight budget can be a real game changer in the saving journey.
This can be quite challenging to some people in the start despite the positive impact it brings about in a very short time. I used to take supper but with the no-spend tactic decided to skip it for 6months, this saved me $540.
You can apply the no-spend challenge in a lot of different ways for example riding a bike to work to skip fuel costs, skipping a beer, free hangouts, and more.
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Compare Car Insurance Costs
Many insurance service providers can give better rates for different reasons which you need to know about. Sure, if you have a clean driving record trust me you’re worth a better premium rate compared to a reckless driver.
Compare the rates offered to you by your service provider with those of their competitors to look out for a fair charge that will save you money. Also, talk to the current service provider about some deductions instead of changing immediately yet you can sort it out from within.
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Cut Eating Out
Foregoing convenience to save money is one of the things that up to now challenge me the most in life.
Planning meals every day or week on a busy schedule is quite hard for most of us though it’s the way to go. You may not completely do away with eating out but preparing your own meals most of the time can save a lot of money.
Let’s say you spend up to $15 every day on meals in restaurants, but what if you make your own meals spending just $10 a day? You’re now able to save an extra $5 which is taken up by restaurants whenever you eat outside.
If planning meals is not your thing, still there’s a way out you can use to save money from eating for example using the $5 meal plan. Here you get meals planned in advance to ease preparations just in case you have a very busy schedule.
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Rethink the Budget
Here we don’t mean scrapping off the current to make another one, but looking through the budget to identify what’s worth cutting back on to save more money.
Some people after making a budget don’t bother looking back at it until the end of the month. But when you’re on a tight budget interested in cutting costs to save it’s worth looking through it for the best.
It’s hard to avoid spending but can be controlled in a way that saves money to enable you to meet saving goals no matter your earnings.
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Automate Savings
Because you’re living on a tight budget it’s very easy to forget about saving money. However, if you want to keep up with the saving goal automation can streamline the process.
Talk to the bank for assistance with automation services or make use of online money-saving apps to get started with an efficient saving plan. Some popular money-saving apps include Oportun, Truist Long Game, and Acorns.
Also, if you’re a salary earner with a high-yield savings account talk to your employer to directly deposit an agreed-upon amount from the paycheck.
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Get Cheap Rent
Renting cheap can save you a lot of money when you’re surviving on a tight budget. If where you’re living the cost of rent is high it would be wise to shift to a location with cheap rent to save.
But in case you’re not ready to move talk to your landlord on personal grounds about some deductions in rent to cut costs. Some landlords are ready to listen when you bring up your concern provided you’re on good terms.
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Always Pay You First
Before paying for anything or any other person, you must pay yourself first. Sure, the money should go straight to your savings account no matter your expenses at the end of the month.
There must be a certain percentage set to be put aside and it’s what you’re paying for your efforts for the month or every after work.
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Cook Outside
If a lot of money is spent on electricity bills or gas to prepare meals, then cooking from outside will save you money big time using firewood.
But this applies most to those living outside the city during summer when the weather outside is fine. You need an outside kitchen in case you don’t have one to use when cooking, and despite the hassles of collecting firewood, it’s worth it.
Therefore, when you’re really on a tight budget this can be a great way to save money cooking.
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Cut discretionary
When you realize that you’re spending a lot of money on things that are not basic in life, it will be wise to forego them to save. This comes to a point where you’re really down to achieving your money-saving goal.
It would be hard to skip luxuries to enjoy yourself, but it’s among the costs that can lead you to a successful money-saving journey. The fact that you’re living on a tight budget, the luxurious lifestyle must be cut to some extent to be able to save.
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Quit Gym Membership
You might be used to going to the gym for fitness, but you can also work out from home at no cost to you at all to save the fees.
It’s possible to get fit from home without using gym equipment to keep fit with the help of online resources like YouTube and free fitness apps.
Not only do you save money on gym membership but also with transport costs to the gym in case it is far away. I know sometimes home workouts are boring but it’s one of the ways that can enable you to save on a tight budget.
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Do Away With Credit Cards
Keeping credit cards with you can make you spend even when it’s not planned. To save money on a tight budget means you need to reduce spending by all means.
Say no to credit card debts or completely get credit cards out of your life to get in control of your finances. This is another way to overcome impulsive spending behavior whenever you’re out shopping.
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Track Spending
Another great approach to use to be able to save money on a tight budget is tracking your expenditures all the time. If you’re clear about your spending, it is easy to tell where your money should go and where it shouldn’t.
This will shape you up for thorough saving since you’re in check of the spending plan all throughout.
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Get Out Of Debt
It’s very hard to save money on a tight budget while servicing debt at the same time. The money that would have been put aside as savings is spent clearing off debt.
Talk to your service provider for guidance on how best to handle debts in order to save more money. When I am paying off debt I normally do it strategically hence starting with the smallest to the biggest amount.
It’s called the debt snowball method, it takes me less time to pay off debt and save more money afterwards. So, you need to do away with debts if you’re on a tight to save consistently.
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Purchase Generic
Honestly, I like branded items with a classy attachment but when it comes to times for saving up for something am out. Generic brands serve the same purpose as name-brand items which most people prefer.
If you’re on a tight budget generic products will save you more money than name-brand products. Whether it’s basic needs or discretionary, this is a great way to mind your expenditure in times of saving.
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Negotiate Prices
You don’t have to be shy about bargaining because it saves a lot of money. It doesn’t matter whether you’re paying in cash or installments you must get the best price.
If you’re on a tight budget you must shop around to get the best offer in the market to increase your savings at the end of the day. Some stores are ready to take your offer to maximize sales and retain you for long-term business.
Don’t get stressed by the tight budget when negotiating prices can save you a lot of money on a daily basis.
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Minimize Electricity Bills
Energy bills might be among the expenses leading to your tight budget hence it’s hard to save enough during the month. Cutting power costs can save you some money which can be put to savings.
Here you should be mindful about lights and any electronic appliances that consume power. When you try this out for some good time the bill will reduce to some amount.
Are you planning to level up your savings? Mind about electricity bills in order to cut costs and save money.
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Shop with Cashback Apps
Another great way to save money on a tight budget is by using cashback apps to shop online to get rewards. Shopping things online through cashback apps will save you a lot of money on purchases made in the form of cash or gift cards.
However, you need to identify partner stores with available offers to save money on purchases. Popular platforms where you can earn cashback include Swagbucks, survey junkie, Ibotta, and more.
And besides, there are different ways to save money on a tight budget through cashback apps compared to normal shopping platforms.
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Reduce Transport Costs
When you are surviving on a tight budget where driving your own car is costing you a lot more, try out using cheaper transport means to save. In such a situation riding a bike and public transport will be a lifesaver.
It’s hard to completely get rid of transport costs in the budget but you can find ways to reduce it. If your place of work or shopping store is near, riding a bike is the best option and where both are far away take public transport.
Doing this for a few months will save you a lot of money which you can use to do some other things that matter in healthy budgeting.
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Negotiate Mobile Phone Plans
If your mobile phone is costing you a lot of money during the month, talk to your service provider for some deductions to save. Phone calls and data are such an expense that you may never give time to review but they put some weight on the budget.
Some service providers are quite flexible especially when you’re their client they don’t want to lose you. Also opting for a cheaper tariff plan is a better option in case you don’t want to switch service providers.
There’s nothing wrong with negotiating mobile plan costs with your service provider in order to save money while living on a tight budget.
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Declutter
Still more ways on how to save money on a tight budget? Clearing a home has benefits like getting to identify things you need from those you don’t need. You could have been spending money to buy or rent items that you already own at home.
But also items that you no longer need can be sold off through online marketplaces to get some money instead of giving them out for free. So, decluttering will save you money despite the hassles of sorting out things.
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Side Hustle
Because you don’t have enough money to settle bills and other expenses, that’s why you’re surviving on a tight budget. You can ease the situation by starting up a side hustle business to generate an income.
Some easy side businesses to start making money fast include online food delivery, affiliate marketing, proofreading, and more. There are lots of other ways to get paid an extra income to ease budget pressure.
However, hustling on the side to get paid an extra income is among the best ways you can survive on a tight budget.
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Reduce 401(k) Savings
If you have a lot of expenses to cover it would be wise to talk to your employer to reduce 401(k) savings to get more disposable income. This will help you survive for quite some time with less pressure.
You don’t have to do away with your savings, and after some time you’ll have to resume savings with the right percentage. The employer will take action depending on what you’re going through to save the situation.
Reducing 401(k) savings should be done when you have tried out most of the money savings ideas discussed above.
FAQs – Ways to Save Money on a Tight Budget
What Is A Tight Budget?
This is where you’re surviving on a small income with planned expenditure.
What Is The Best Way To Save Money On A Very Tight Budget?
No spend challenge, cashback apps, and rethinking the budget are still working for me effectively until now. I don’t know about you but a better money-saving practice is all about effectiveness and convenience.
Do I Need Any App To Save Money On A Tight Budget?
One of the most convenient ways to save money shopping online is using cashback apps. If you’re good at shopping online, using a cashback app will save you a lot of money.
The End
Unless you’re not ready to put in the work, it’s very possible to save money on a tight budget. And you don’t have to be a finance genius to get started with saving money.
