If you’re on a tight budget or low income, it may seem hard – if not impossible – to start saving money. So, we’ve put together a few helpful tips that may help you save some cash, even if you are already on a tight budget.
1. Avoid Eating out or Ordering Takeout
The average American household spends about $3,000 per year dining out or getting takeout. If you make sure you always have groceries on-hand and know some simple, easy-to-make recipes, you can avoid going out to eat as much – and save some serious cash.
2. Buy Store-Brand Groceries
Most of the time, generic store-brand groceries are just as good as name-brand items – and they usually cost 30-50% less. Shop store-brand, generic items whenever you can to save on your monthly grocery bill.
3. Cancel or Shop Around for Monthly Subscriptions
Do you need Netflix, Hulu and Disney+? Look at your monthly subscriptions and cut whatever you can. Every little bit helps.
For other monthly costs like cable, internet, and cell phones, shop around. You might be able to find a better deal with another service provider or be able to negotiate a better rate with your current service provider.
4. Shop Around for Insurance Coverage
If you pay for auto insurance, home insurance, renter’s insurance and other such insurance policies, you should shop around each year to see if you can get a better rate. Even saving $10 or $20 per month on insurance will add up over time!
5. Start Saving – Even If It’s Just a Little Bit at a Time
Even if you can only save $20 a week, do it. If you can build up an emergency fund, you can have cash on hand when unexpected expenses come out, and you can avoid high-interest debt like short term loans.
Short term loans have high-interest rates and fees – which can devastate your budget. If you can save up a few hundred dollars and avoid the need to take out a loan, you’ll be in much better financial shape when an unexpected expense comes up.
Follow These Tips to Save More!
When you’re on a tight budget, remember that every dollar count. Track your spending and saving and make as many changes as you can to maximize your savings rate – and you’ll be able to avoid high-interest loans and build a better financial future.