• Nav Social Menu

    • Email
    • Facebook
    • Instagram
    • Pinterest
    • Twitter

Penny Polly

  • Home
  • Smart Money
  • Make Money
  • Lifestyle
  • Blogging
  • How to Start a Blog in 2023
  • About Us

May 24, 2020 by Cara Berkeley

9 Ways to Save Money on a Tight Budget

Filed Under: Smart Money

Pin37
Share10
Tweet
Reddit
47 Shares

This post may contain affiliate links. Please read my disclosure for more information.

Figuring out how to save money on a tight budget can feel impossible. You save money when you have extra right?

And, if you are on a tight budget and a low income, extra is just not something you have, making it extremely difficult to put away money for your savings.

But, saving is important for your future. And, believe it or not, saving money can actually help you start to make more money. And with more money, then you don’t have the issue of a tight budget!

Because, if you save enough money, you can start a business or a money-making side-hustle. Or you can save enough for a down payment on a house and stop wasting money on rent.

The point is, saving money on a tight budget, even on a low income is a necessity for your financial health and your future. And, even when you are on a limited budget, you can still find ways to save money.

The MEaning of a tight budget

What exactly is a tight budget? Sometimes it is even referred to as a shoestring budget. According to Merriam Webster, here is the actual definition of a tight budget:

: involving a relatively small amount of money for planned spending. And here is the example they give of it in a sentence:

She started her business on a small/tight/shoestring budget and could not afford to overspend.

Basically a tight budget means you have very little extra money!

9 ways to save money on a tight budget

If you have a fixed, low income and a limited budget, there are still ways to save money. Try these 7 best tactics for saving money on a tight budget.

1. Review Your Budget

saving money on a tight budget means reviewing your budget carefully
Review your budget to find places to save money

The first step in finding ways to save money is to take a hard look at your current, albeit tight, budget. And if you don’t have a budget sheet you need one like the one below!

You may simply have too much allocated for certain parts of your budget. Ahem, entertainment! While going out to eat or having drinks is fun, it might be robbing your future from you. And it could be preventing you from saving money like you need to.

Just say no now, long enough to increase your savings in order to make more. And, someday, maybe you can go out to eat as much as you want.

In any case, review each line of your budget and see if there is a place where you can find extra funds to push to your savings account. Read this guide for tips on exactly how much you should save each month.

2. Track every penny you spend

One possible issue with not finding ways to save money on a tight budget is that what you are spending is getting away from you.

You might drop $4 on a latte without thinking, or spend extra at the grocery store without even realizing it. If you are struggling to save money, this could be a factor.

It is easy to ignore small expenses, to spend and forget and then at the end of the month you wonder where the heck all your money went!

If you are on a tight budget, with not a lot of income you need to be extra vigilant. Track every penny of the money that you spend. It can help you find ways to save more, even on a small budget.

It will not only help you understand where you could find money to save, but could also help you spend less in general.

Before you buy anything, ask yourself if you really need it.

Chances are you don’t, and if you track everything, and spend less pennies every day, at the end of the month that adds up to dollars.

Dollars you can save.

3. Make lifestyle changes to save more money

One easy way of saving money on a tight budget is to change your lifestyle in order to free up more funds.

You might be living in a two bedroom apartment but you only use one. Yes, it’s nice to have a whole second closet (that’s the size of a bedroom).

But you won’t get ahead if you aren’t using every asset you have. So rent out the second bedroom, even if just for a few months. You can pocket several hundred extra dollars for your savings account.

If your car payment each month is a lot, consider selling the car and buying something less expensive.

If your budget is just too tight to find money to save, make changes to free up money for savings.

If you are really strict, you can save as much as $5,000 in 6 months!

4. Find ways to make extra money

Take another job to make money so you can save money when your budget is tight
One great way to save money on a tight budget is to make extra money

If finding a way to save money on a limited budget seems impossible, then try a different tactic. Like finding ways to make extra money!

It is certainly much easier to save money when you have more of it on hand. It might even be fun to find a new way to make extra income.

There are a ton of ways to make extra income. Take an extra part-time job, turn your favorite hobby into a side hustle, or start an online business. There is no limit to the options to make extra cash to save.

If your budget is too tight to save, try increasing your budget by bringing in more income!

5. Reduce your utility bills

This is a tried and true way to find money to save on a low income. Most people just pay their utility bills without looking at them.

But the truth is, you can absolutely reduce your utility bills without sacrificing comfort. Change your thermostat every day when you go to work. You don’t want to pay to keep an empty house comfortable!

In the winter, layer your clothing to keep warm instead of just relying on the heater. Check seals on your windows and doors to make sure you aren’t cooling or heating your home inefficiently.

Purchase smart plugs to help control electricity use or a smart thermostat for your HVAC. Turn off all your lights when not in use.

6. Look for hidden charges

Examine all your bills for any hidden extra charges. Or subscriptions you don’t need. A lot of times when you sign up for a free trial, once the first week or month is up they start charging you.

You may be getting charged for something you don’t need or use. Make sure to find hidden charges and cancel them. Your budget could be tight from unnecessary expenses.

7. Negotiate your bills

Another way to save money on a tight budget is to find more money by negotiating your bills.

A lot of service providers like cable tv will offer serious discounts to new customers. You can either switch to a new one to save a lot, or call up your existing provider and ask them to lower your bill.

They will likely work with you to avoid the loss of a customer, especially if you tell them about their competitor’s offer.

Find ways to save by bundling services such as internet and t.v. Review every bill you pay, and call them up to see if you can save more money!

8. Try a No Spend Challenge

If you really want to find a good way to save money try a no-spend challenge. It can be for a set amount of time like 2 weeks, or 30 days.

You just have to spend no extra money on anything beyond the basic necessities that you need. At the end of the challenge you should have some money to deposit in your savings account!

9. Wear sweaters

One of the best ways to save money on a tight budget is to lower your utility use. Layer up with sweaters in the winter so you don’t have to use the heater as much. Close doors to rooms you don’t use and maybe even invest in a space heater.

In the summer, use fans and open the windows on some days to really save.!

Saving on a tight budget

If you are living on a tight budget, you can still find ways to save money. Don’t give up, and adopt these best ways of saving to help yourself.

Next Smart Money Posts:

5 Ways to Spend Less on Food

10 Practical Ways to Build a Better Home Budget

5 Ways to Save For a Downpayment on a House

Why You Should Stop Buying Starbucks® and Start Saving For Your Dream Instead

Recession Proof Jobs

21 Free Printable Budget Worksheets

How Much a Year Do You Make From $18 an Hour?

How Much is $15 an Hour Per Year?


Here are my favorite budgeting and saving apps:

Rakuten for cash back on shopping. Use this link to make a $30 welcome bonus.

iBotta for special offers and cash back on groceries.

Acorns which takes your spare change from purchases and invests it for you to help you make even more money.

Personal Capital for money management. Get a money dashboard, free analysis and personalized wealth advice.

Pin37
Share10
Tweet
Reddit
47 Shares

Primary Sidebar

Archives

  • May 2023
  • April 2023
  • March 2023
  • February 2023
  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • April 2021
  • December 2020
  • October 2020
  • August 2020
  • June 2020
  • May 2020
  • April 2020
  • February 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • September 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • December 2018

Categories

  • Blogging
  • Lifestyle
  • Make Money
  • Smart Money
Email service
  • Contact Us
  • Privacy Policy
  • Disclosure

Copyright © 2023 · Captivating Theme on Genesis Framework · WordPress · Log in

Scroll Up