Managing a budget is one thing. Managing a tight budget, however, is a whole different level. While in the first case you have many choices, a tight budget leaves you with little to no options. So what can you do about it? Here are the best money-saving tips to manage money on a tight budget.
Tip #1: Shop with a list
The first of our money-saving tips is about shopping – supermarket and groceries. Shopping without a list is like shopping when you’re hungry; you inevitably end up buying things you don’t need. Thus, not only are you overspending, but you also end up with spoiled food in your fridge and cupboards. Besides, without a shopping list, what you are most likely to add in your shopping cart is a bag of chips than a fresh lettuce, so it’s not very good for your health either.
So make your shopping list and stick to it.
Tip #2: Buy Second-hand clothes
Buying second-hand clothes is not only good for the environment – it’s good for your pocket, too. Apart from leaving a smaller carbon footprint and saving tons of water, buying second-hand clothes saves you a lot of money.
From dresses and sling bags to jackets and shoes – if it’s worn, it can be found in a second-hand store or thrift shop. What about good quality designer clothes? Those, too! If you’re inexperienced in buying from second-hand shops, here’s a detailed guide that can help you with that.
Tip #3: Find online deals
Who said that entertainment needs to be expensive? Whether you’re looking for a massage, a dinner for two, or an Amazon offer, you can find many options at low prices. Budgeting money for entertainment costs is important, and what you can do is take advantage of online deals and save money on these costs.
The secret for these sales is to just pick the ones you know you’re going to use and stop once you’ve hit the month’s limit. Don’t forget, you have to be careful that once you’re there you don’t end up spending more than you planned.
Here’s a list with a few of the most popular online deals websites:
Tip #4: Cut back on big expenses
When you are looking for ways to manage money on a tight budget, don’t have to take anything for granted. Look at your budget as a whole. Is the payment for your car too much? Could you find a cheaper place to live? Can you move in with your roommates to save on rent?
Such solutions may be the last steps you take when looking for ways to maximize your savings, but they can also help you save a good amount of money every month on your bills. The lower these expenses you have, the easier it is to stick to your budget. Cutting back on one big expense is like butting back one many smaller ones.
Tip #5: Start saving from the bottom up
Saved the best for the last. The last one of our money-saving tips is to start saving from the bottom up. Saving from the bottom up means that you are not trying to see where you can save money from, you are writing down all the things you can’t live without – and you save everything else.
The first step to this is differentiating needs and necessities. Needs include things like technology products (smartphones, laptops, TV’s, gadgets), shoes, bags, going to the cinema, making a trip – you get it. On the other hand, necessities are things that if they were missing from your life you’d end up homeless or… not very alive.
In general, necessities fall into one of these 5 categories:
Of all the things and services you consume, you need to write down which belong to the above-mentioned categories. Your daily food and your medicine are some of these things. Your electricity bill and the bus to your work are a couple of others. As soon as you have your list ready, you should be ready to enter a new reality: a reality with a lot of “no’s” to your needs at the beginning. However, as time goes by, you will start to realize that you were spending money on things you didn’t really want. Furthermore, you will start to feel less anxious. And, sometimes, less is more.
Did you like our money-saving tips? Here’s a quick read with 5 simple ways to save money every month!