A recent survey found that 62 percent of Americans have less than $1,000 saved. It’s too easy to overspend and not save any money. There are ways you can improve your financial health no matter how much money you make.
If money is tight, there are certain ways to save money and survive. Click here for some great tips, strategies, and options you have.
Create a Budget
The first thing you need to do to save money is to create a budget. This will let you know how much you have left to spend, so you don’t spend too much and not have enough for an important expense like your utilities.
To create a budget, figure out your income and list all your standing expenses like rent/mortgage, car payment, insurance, and utilities. Then you can see what you have left. You will then need to figure out how much you spend on other necessities like gasoline, food, and entertainment.
After you have your budget, you need to figure where you can make some cuts. If you are tight, you may have to cut back on some things that are not necessities like cable, gym memberships, and going out to eat.
Look for ways to cut back on each expense like shop around for insurance, limit electric use, or adjusting your thermostat. Try conserving fuel by carpooling or limit your errand running. Other ways to save money and cut costs include:
- Look for coupons
- Limit eating out
- Make your own coffee
- Cut your cable
Also, comparison shop all your expenses like Internet, grocery stores, and compare prices online before you purchase anything. A few dollars here and there start to add up over time.
Create Visual Goals
Determine your goals. Do you want to pay down debt? Stay afloat? Get out of debt?
Make visible goals like a chart or a picture you carry with you. This will remind you of what you are working on and help you curb spending. If you have a chart, you can track your progress and celebrate your success.
Seeing progress will help you from becoming discouraged. You can evaluate your goals and determine if you need to make any further adjustments.
Look for Ways to Earn Extra Income
If you can find ways to make extra money, it can help you when your finances are tight. Try thinking outside of the box for side gigs, items you can sell, or a work from home job.
You can also look for seasonal jobs and work evenings and weekends. You never know you may find something you enjoy. If you want something at home, check sites like FlexJobs for legit jobs.
Focus on One Debt at a Time
Try focusing on one debt at a time. This means paying the minimum on everything else. Throw every extra dollar at the selected debt. Once you are done with the first, focus on the next debt and apply extra money to that one.
Watch Your Spending on Food
One of the biggest ways you can save money is to change the way you eat. Limit eating out. Meal plan before you go to the grocery store and stick to your list.
Try shopping at other grocery stores to see if you can save or using coupons. To avoid impulse buys, see if your grocery store offers online orders with free pickup.
Change Your Attitude About Saving
Don’t make saving money a miserable experience—turn it into a game. Try not to feel like you are always missing out because then you will find yourself unhappy and your budgeting will probably start to diminish.
Choose a positive attitude about your spending habits. If you find joy in saving, you are more likely to stick with it.
Earn Your Splurges
Try giving yourself a few “splurges” every now and then to celebrate your spending changes. Make sure it is something you can afford, but you will appreciate something much more if you earned it. For example, buy that new shirt if you were able to add money to savings.
Just make sure your splurge isn’t too large because then it defeats the purpose of all your hard work with your spending. You can also make it an event for the whole family like a trip to the movies or a family trip to the bowling alley.
Switch to Cash
To help you follow your budget, switch to using cash. You may not be able to pay your utilities with cash, but you can use cash for groceries and entertainment.
This will give you a strict limit on your spending, so you do not budge on your budget. You will be aware of how much money you can actually spend without ruining your monthly budget.
It can help you make choices of what you should put back at the store and determine the best way to use the money you have. You can prioritize your shopping.
Switching to cash means that you may not have as much extra laying around. If you have a large unexpected expense, you may need to look at online payday loans direct lenders or borrow from a family member.
If you want to increase your savings account, it’s possible. One of the best ways is to divert a percentage of your pay right into your savings account. This will force you to think twice before you touch the money in your savings account.
Start with 10 percent of your pay and see if that works for your budget. If not, adjust to 5 percent, but try to work with at least 5 percent every pay.
You Can Save When Money is Tight
There are plenty of ways to live comfortably even when money is tight. It’s important to make a budget, stick to it, find other ways to save and change your attitude.
We hope you found these tips helpful to help you save money. Come back and check out other articles on our blog for help on living a healthy life!