Saving on a tight budget demands discipline, strategies and finance bound knowledge.
Most people are on the lookout for how they could cut back on spending. Saving on a tight budget does not mean completely depriving yourself; it’s about changing a few bad financial habits and making smarter choices with your money.
SMART STRATEGIES TO SAVE MONEY ON A TIGHT BUDGET
Here are ten small changes that can help you start saving on a tight budget.
1. Create a budget:
A budget is a financial plan that outlines your income and expenses over a specific period, typically on a monthly or yearly basis. With a budget in place, you should be able to track your income and expenses and understand where your money is going.
While creating your budget, do well to allocate specific amounts for different categories and don’t forget to include necessities and discretionary spending.
2. Automate your savings:
If you have a fixed monthly income, consider automating your savings by having a fixed amount that is automatically saved for you on daily, weekly or monthly bases. Fairmoney has a feature on their mobile app that enables you do that seamlessly and earn interest in return. You may want to consider downloading the Fairmoney App to start right away.
Automating your savings ensures that a fixed amount is regularly transferred to your savings account without any effort on your part. This consistency helps you build a savings habit and ensures that you are consistently working towards your financial goals. Also, it eliminates the temptation to spend money that you intended to save, as the transfer happens automatically before you have a chance to spend it elsewhere.
3. Cut out cable:
With Netflix, Hulu, Showmax, Irokotv and other streaming options available, you don’t need to spend so much money on television every month. If you are on a tight budget, consider switching to a cheaper channel. You can still enjoy other forms of entertainment using a cheaper streaming channel.
4. Negotiate Bills:
Negotiating your bills doesn’t mean you are poor; it shows you are smart with your money. Negotiating your bills helps you to save money and also improve your financial situation. Many service providers and vendors may be willing to offer discounts, promotions, or lower rates to retain you as a customer.
5. Second-hand and thrift stores:
When saving on a tight budget, it’s important to consider buying from thrift stores. You can purchase gently used or fairly used items that can serve for the same purpose as the new one.
Items at thrift stores are typically priced lower than their new counterparts, allowing you to stretch your budget further and find great deals. You can discover vintage clothing, retro furniture, and one-of-a-kind pieces that may not be available in mainstream retail stores at a cheaper cost.
6. Cook at home:
Eating out every day can be really costly. According to hikersbay, eating a three square meal in a cheap restaurant is about ₦2,400 and in a week, about ₦17,000 just on food alone.
Instead of always eating out, you can take out time to buy your foodstuffs in bulk and prepare your meals at home.
Also, make sure to plan your meals ahead to minimize food waste and avoid die-minute, expensive dining.
7. Stay healthy:
There is a popular adage which says, “Health is wealth”. Medical bills can be really costly, so it’s important to be proactive about staying healthy. Focus on preventive health measures and take advantage of community wellness programs.
Also, choose healthy meals over junk meals and exercise regularly to reduce the chance of health complications. If you are sick, see the doctor sooner than later to avoid complications.
8. Financial Education:
One of the ways to save money on a tight budget is to be financially literate. Educate yourself about personal finance so as to make more informed decisions. You can take advantage of financial communities across various social media platforms, follow proven financial experts and read some financial books that address your financial needs.
9. Use Cashback Apps:
Cashback apps are mobile applications or online platforms that offer users a certain percentage of money back on their purchases. You can use cashback apps such as PiggyVest, to save more and get cash backs in the form of points that can be converted to cash.
10. Avoid debt:
As much as you can, don’t buy what you can pay for immediately. The idea is to save more and not to fall into a debt trap. If you have any outstanding debt, work on paying it off. Remember, tight budgeting and saving means living below your means.
Always, remain focused on your financial goals, prioritize your needs and stay committed to your budgeting plan.