How To Save Money On A Tight Budget Every Month

Have you ever struggled with trying to get your emergency savings account built up? Does it seem like when your almost to your $1,000, then…BOOM! Good ole Murphy strikes again, only to knock you down, right back where you started! Well, you’re not alone. So many people struggle with this and think that it’s impossible to save money on a tight budget, let alone $1,000, especially if you’re already on a tight budget.

According to the Bureau of Economic Analysis, Americans savings rate has been dropping steadily over the last 10 years. Why do you think that is? Well, there are more Americans in debt than ever before.

Recently, GOBankingRates surveyed more than 7,000 people last year to see how much they had saved in a savings account. The results were mind blowing! The percentage of Americans with less than $1,000 in savings was at a whopping 69%. What’s even worse, is 34% have no money in savings, at all.

There may be several reasons for that. Unemployment, low paying jobs or so many are just flat overspending. Everyone’s circumstances are unique, but I’d like to tell you there are several things you can do that can help you to save at least a portion of you income, whatever it may be. It’s imperative that you do this as it’s going to be the only thing that will keep you from going further into debt.

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Can You Save Money On A Tight Budget? You Bet!!

Here are a few things you can do to save money on a tight budget, no matter what your income:

Have A Budget!

Ok…ok…I know I sound like a broken record, but how can you begin to save anything if you don’t know where all of your money is going? If you need help with this, click here. Put your income and expenses out in front of you in black and white and see what your spending and where you can cut. That means some of life’s little indulgences (or unnecessary expenses) may need to go…at least for the time being.

Cut Unnecessary Expenses

What are indulgences, you might ask? Well, satellite/cable tv, gym memberships, coffee shops, eating out…you get the idea. These may be small expenses each month, but collectively, they really add up!

Now would be also be a good time to quit expensive (bad) habits, like smoking and/or drinking. Did you know the average smoker spends around $2,000 a year on cigarettes! That’s literally money that goes up in smoke…not to mention the health issues that occur as a result.

Utilities are another area that you can reduce by being proactive. Turn lights off if you leave a room, take shorter showers, raise/lower the thermostat according to the season, unplug appliances when not in use, line dry your clothes, etc. Be intentional. It’ll save you, big time!

Evaluate Larger Expenses

If you really need to cut deep into your budget, take a look at some larger expenses you may have. Do you have a large car payment? Remember, your car is one of the biggest purchases that go down in value, never up. There are plenty of older, reliable cars out there.

Are you house poor? Meaning, do you you have too much house (payment) for your income? You may love your home, but if it takes every extra, available dollar to keep it, maybe you might need to consider downsizing or taking on a renter. A house can become a curse, instead of a blessing, if you have no room for a life because your house payment is too high.

Save On Groceries

One of the biggest changes I made when I started building our savings was our grocery bill. I use to go grocery shopping with a list, but not an intentional list. I would buy what I was out of, but I lacked a plan.

Now, before shopping, I map out my plan…my meal plan…for the week ahead of me. Meal planning is crucial when it comes to saving money at the grocery store. When you know what your going to cook ahead of time, including sides, it will save a ton of money, because it will reduce those unplanned, in between trips that could cost you way too much.

Buying generic store brands instead of name brands is also a money saver. I know some people think that name brand is always better, but that’s just not true. A lot of times, your getting the very same thing, buying generic, just with a different label. The best thing to do is to at least try the store brand and see for yourself, if there’s a difference. The savings really adds up.

Stay Away From Temptation

This may seem a little obvious, but it’s harder for some than others. If you’re trying to save money, don’t go where you know you’ll spend it.

If the mall or Target is your weakness, stay out of them! You’re setting yourself up for failure, right from the beginning.

Don’t hang with people who go to places of temptation. If your best friend’s idea of a good time is spending the day shopping, limit your time with her or suggest other alternatives to spending money. If she doesn’t go for it, you may need to be honest and upfront with her about what your trying to achieve. A true friend will understand and be supportive.

Learn To Say “No”!

This goes hand in hand with staying away from temptation. I know how hard it is to say “no” when it’s something that you’d really like to do, but you have to keep the end in sight.

Humans tend to be people pleasers, making the task of saying “no” almost seem confrontational. This can wreak havoc with your finances, if you’re not careful.

Have you ever fallen victim to a pushy sales person that convinces you to buy something because you didn’t want to offend them by saying “no”? Most of us have at one time or another.

Maybe your afraid of missing out on something, so it’s much easier to say “yes” and worry about the effects it’ll have on your life, later.

Whatever the reasons may be, learning to say “no” will empower you in more ways than you even realize. Make your goals a priority and saying “no” become easier…especially when you start achieving them.

Take It Off The Top!

That’s right! If you want to make saving a priority, take it right off the top AND make it automatic! Chances are you won’t miss it. Once you take it off the top, get it out of sight. Transfer it to another account so you get it out of the checking account, immediately. Better yet, don’t even have your savings at the same bank as your checking. Having all your accounts at the same bank makes tapping into savings too tempting and too easy. Therefore, if you don’t see it, then you won’t spend it. The key to building your savings is frequency and consistency!

Get Rid Of Debt!

This is really a no brainer. If your whole paycheck is being spent on your debt, this really makes saving almost impossible.

Dave Ramsey’s first step in the 7 Baby steps, is saving $1,000. Once you have that, then baby step two is attacking the debt. Once the debt is gone, then you can keep building your savings until you have 3-6 months of expenses saved. Stop putting things on credit! You’ll never save anything, let alone, achieve financial freedom if you remain in debt!

If you need help getting started, read 14 Ways To Pay Off Debt and Get Your Life Back.

Use Cash

It’s a proven fact that when we use cash (instead of credit) we spend less and we feel more connected to the purchase. I don’t know about you, but when I have cash in my wallet, it’s almost painful to let go of it. It’s a psychological thing, I’m sure.

Bottom line is that using cash actually saves you in more ways than one. You spend less, you don’t pay any interest on cash and you are more thoughtful of what your purchasing.

Earn More

When your low on funds or your trying to build your savings up, the easiest way to do this is to earn more.

Some ways of earning more might be to:

• Work a second job. Doesn’t have to be forever. Just until you’ve reached your goals of saving and getting out of debt.

•Negotiate your salary (i.e. ask for a raise).

•Make extra money from hobbies.

•Sell stuff! Turn your clutter into cash! This kills two birds with one stone. It’ll help you get out of debt and give you more space.

Be Frugal!

Don’t just be frugal…Embrace it! Frugal doesn’t mean cheap! Put that myth to rest! It simply means one is less wasteful and more resourceful. We prioritize our spending and live on less than the average consumer. All the while, doing it happily and being content.

Frugality is an extremely important part of personal finance and it is a valuable skill that has served me and my family well. It has allowed me to optimize my finances, giving us choices that we may not otherwise have had. (Read more about 12 Habits of Highly Frugal people).

Don’t Give Up!

There are so many ways to save each and every month. All it takes is some intestinal fortitude, creativity and persistence. The important thing is to not give up. Murphy may make several visits, but having savings make the difference between a crisis and a mere inconvenience. Set a goal and stick to it! Even if you can’t do every item on the list, at least start with a few and see how much headway you can make. You might just surprise yourself!

What are some things that you have done to be able to increase your savings account? I’d love to hear them!

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How To Save Money On A Tight Budget Every Month