Are you on a tight budget?
If so, you’re not alone. In fact, a recent study found that 78% of workers live paycheck to paycheck. Although there are various options to get a cash advance with bad credit or low income, you should still know how to save money when your budget is already tight.
How do you do it?
Check out this guide to learn about the top ways to save money on a really tight budget.
Take a Look at Your Food Bill
One of the easiest ways to save money is to change the way you eat. In fact, the average American household spends $7203 a year on food. Most Americans spend about $600 a month on food, with $337 being spent on groceries and $263 being spent on food away from the home.
So, when it comes to cutting back on your food bill, one of the best things to do is to stop going out to eat. Additionally, one way to save money on grocery shopping is by making your grocery list before you head to the store so you don’t buy anything you don’t need.
Switch to Cash for Daily Expenses
While it may not be practical to pay your rent or utilities in cash, switching to cash for your daily expenses can help you cut back on your spending.
By using each day, you place a hard limit on how much you’re able to spend, and you’ll become more aware of your spending choices. We especially suggest sticking with cash for groceries, entertainment, meals out, and clothing.
Implement the 50-30-20 Rule
The 50-30-20 rule is a great way to stay on top of your budget and divide up your income. Here’s a breakdown of how this budgeting plan works:
- 50% of your income goes toward must-haves, such as rent, utilities, and gas
- 30% goes toward wants, such as meals out, entertainment, etc
- 20% goes into your savings
Ideally, there should be enough money in your budget to follow this ratio. If you find that you don’t have enough money for one category, then it’s time to adjust your spending a bit.
Opt for Free or Low-Cost Activities
Just like food, entertainment can also eat up a large portion of your budget.
This is why we suggest cutting back on the concerts, trips to the movie theater, and nights out at the bar. Here are some ideas for free or low-cost events:
- Pack a picnic and spend a day at the park
- Have a board game night
- Have a movie marathon at home
- Be a tourist in your own city and check out the most famous landmarks
- Go for a hike
As you can see, there are a lot of free activities worth exploring.
Cut Back on Big Expenses
While it can be a big sacrifice, we also suggest you find ways to cut back on big expenses.
Could you move in with roommates to save on rent? Could you find a cheaper place to live? Could you sell your car and take public transportation instead?
While this can mean a major life adjustment, cutting back on these big expenses can save you tons of money each month.
Ways to Save Money on a Tight Budget: Are You Ready to Save Big?
Now that you’ve read this article, it’s time to put these ways to save money on a tight budget into action. Before you know it, you’ll be putting more and more money aside each month.
Also, be sure to check out this guide to learn how to save money on your next family getaway.