10 Ways to save money on a tight budget


Saving money can be a pain in the neck and many people are struggling with this. When you’re living on a tight budget, it’s not easy to find extra ways to save money. It can feel like every penny is going towards paying your bills, with nothing left at the end of the month.

Here are creative ways to save money on a tight budget. You may be surprised how doing a few temporary tweaks to your monthly spending can add up to big savings! 

Follow these realistic ways to save money so you can reach your goals faster.

  1. Create a budget

Whether you want to save money on a low income or a high income, you need a budget. 

You can try the simple 50-20-30 budget rule. 50 percent of your income will go towards living expenses, i.e., household expenses, including groceries; 

20 percent towards savings for your short, medium, long-term goals; and 30 percent towards spending, including outings, food, and travel.

A budget is simply the process of making a plan for how to spend and save your money. With the right tools, you can put together your monthly budget with ease. This can help you save money every month.

  1. Set Saving Goals & Stick With Them

Setting up your saving goals is super important. It’s important to think about “your why” and figure out why you want to save money. 

Think about the following questions

  • What are you saving for?

  • What’s your long term goal for your savings?

  • Why is it important for you to save money?

  1. Follow the cash envelope system

If you have trouble with overspending, consider switching to a cash diet. This means you’ll put away your debit card and credit cards, and pay for everything using cash.

The cash envelope system can be a fun way to help budget for items which tend to bust your budget. This can help save money on a tight budget.

  1. Follow the 30-day rule

 Following the 30-day rule can be an effective way to control impulse shopping.

Here’s how it works:

  • Whenever you feel the urge to shop, especially for items you don’t really need, force yourself to stop. Put the item back, empty your shopping cart, and leave the store.

  • Write the item down on a piece of paper with today’s date, the store where you found it, and the price. 

  • After 30 days have passed, think about if you really need to buy the item. If you still feel the urge to buy it, then consider looking for the most cost-effective way to get it.

  1. Cut Some Luxuries

If you cut even one daily or monthly luxury and put that money into your savings account instead, you’ll be surprised at how much it can add up. Here are some examples:

  • Takeaway cappuccino: £2.25 per day, adding up to £11.25 per working week. Cost of a coffee brewed at home and put in a travel mug: £0.06p per day.

  • Shop-bought lunch: £4.55 per day, adding up to a whopping £22.75 per working week. The average cost of a homemade packed lunch: £1.50 per day.

  • Gym membership: £50 per month. Cost of walking, jogging, cycling near where you live or doing online at-home exercise videos: Free.

Doesn’t sound like much but put that into a savings account and you could have over £400 by the end of the year.

  1. Meal Plan

You may not think you’re spending that much on dining out, but let’s take a quick look. If you eat out for lunch Monday through Friday, that’s around $10 per day. This adds up to $50 each week or $2,600 per year.

Planning out your meals is a great way to stay ahead during the week. You can also store your leftover food in food containers to help with saving food and money throughout the week.

  1. Save money with sinking funds

A sinking fund means you save up a small amount of money each month for a certain period of time. This is a strategic way to save for planned expenses, such as a new car, a vacation or Christmas.

Having a sinking fund can help you save money on a tight budget, so you’ll be prepared to cover expected expenses without having to dip into your emergency fund or go into debt.

  1. Shop for The Holiday After The Holidays

Do you want to know when the deals hit the stores?

Right after the holidays!

So, shop after a holiday has ended. Since most stores want to get the old holiday stuff out they will put it on sale for super low. So, check out your local stores the day after a holiday has ended. You will be able to find a lot of sales.

  1. Ask for a lower APR- Rate For Your Credit Cards

If you do have a credit card, call the company and ask them if they can lower your APR rate on the credit card. Lowering your APR rate will make the interest on the card much lower which can save you money in the long run. 

  1. Track your spending

Do you know where your money is going? You may not think those $5 purchases here and there will make a dent in your savings. But seeing how much these purchases add up may change your mind. If you’re struggling to save money, then tracking your spending can help you see exactly where your money is going.

Life is expensive! We have to pay for groceries, clothes, housing, transportation, healthcare, utilities, and more. If you are going to save money, pay off debt, and become financially free, you need to be deliberate and creative with your finances.

These saving tips are simple to implement and will help you save more money even if you are living on a tight budget.