The secret to saving when money is tight lies in being able to cut down on one’s living expenses. Yes, if money is tight, you can only be able to save if you also start living “tight.” Tight living is all about getting on a budget that enables you to get hold of your finances and be able to track your expenses.
Apart from helping you to become more efficient in money management, a budget will also make you to know the income you have available to spend in a month, you’ll therefore try to budget effectively so as to ensure that your expenses don’t exceed the income you have available.
As you become more efficient in budgeting to manage your money, a time will come in which your income will be exceeding your expenses, then you’ll have some money to save regularly; a first step to making your financial dreams realities.
Detailed below are five other tips on saving when money is tight.
1. Set Financial Goals to Achieve
To be successful in saving when money is tight, one necessary thing to do is to have a vision of where you want to be in your financial future, and then set financial goals to achieve. These goals will motivate you to put in efforts that’ll help you in saving when money is tight.
2. Control Credit Card Usage
Using a credit card may seem a fun way of going round to buy things, without carrying cash around, but it’s one thing that can damage your financial health. Soon, you’ll find yourself in debt and there is no way you’ll be able to save.
The best credit card usage involves; shopping for the best deals, paying your interests as soon as possible, using only one credit card, and avoiding using it on impulse items that you can live without. You’ll be able to save if you get hold of your credit card(s), no matter how tight money is.
3. Identify Areas in Which to Cut Down Expenses
There are many areas in which you spend money that you could have saved. Expenses on books you could have borrowed from your public library, luxury items that you can do without for the time being, and other impulse purchases.
By identifying these things on which you spend the bulk of your meager income, you’ll come to know whether you really need them or not and therefore make the necessary lifestyle changes to stop spending money on them. As you do this, you’ll have more money to save everyday no matter how tight the economy gets.
4. Find Other Income Sources
Maybe the size of your income is what prevents you from saving money. If your income isn’t able to cover all your living expenses then you can’t save, unless you have other income earning opportunities.
5. Reduce Your Utility Expenses
The amount of money you spend on utilities such as water, gas, and electricity will also go along way to influence your ability to have something to save at the end of each month. It’s therefore necessary that you take measures to cut down on these expenses. Unplug items such as television, heater, and iron when they are not in use. You can also join a car pool to save on gas.