No matter how tight your budget is, you need to find ways of saving for the future. Sometimes we face unanticipated occurrences that we must settle. So if you hadn’t considered such happenings, then you may find yourself in limbo. As a financially literate person, you should never find yourself stuck. So here’s a list of ways you can get extra dimes to save.
Top 10 Tips to save while on a tight budget
1. Save on grocery shopping
Groceries can be a nuisance when you are out to make an extra saving on a tight budget. Most people record grocery expenditure as one of their saving banes. If you belong to this category, let's look at how you can get a few bucks here to save.
One of the best ways to save on groceries is by buying them in bulk. If your family consumes a lot of them per week, you may save a lot when you buy in bulk. You can go to grocery stores and compare the difference. Besides the discounts you get when you buy in bulk, it also cuts on your trip cost. Remember every time you go shopping you are either spending on fare or gas. All these are invisible expenses that you may not notice but are real.
Price matching is another unique way of cutting your expenditure on groceries. At most of the big boxes and national retailers, you can use this trick to pay less. All you need to do is bring down the matching ads from competitors. Then present them to the cashier before paying an equal amount.
2. Negotiate for lower rates and bills
Whenever you go buying anything, consider negotiating for lower rates. No entrepreneur or company would want to annoy a potential client with hard stands on rates. So, in most cases, you’ll land great deals that will allow you to save.
Negotiation can work wonders for your car insurance and credit cards. If you are always in the good books with your creditor or insurer, you’ll always have a soft ground. So, give it a shot and who knows, you might get yourself a hefty cut.
3. Cancel all subscriptions you don’t use
This is one of the surest ways to get extra cash to save. If, for example, you have a cable subscription that you don’t use, it’s time to get rid of it. Or, instead of canceling the services altogether, you can migrate to other providers. This way, you will have something to save while still enjoying the services.
The same applies to mobile phone plans. For example, if you are on an expensive plan with a data subscription and yet you have wifi, you need to change. You can also keep an eye on the periodical offers. Due to stiff competition in the business, several companies have different forms of coupons that you can save on.
4. Look for ways of reducing big expenses
Seek to slush your expenditure on big items like the house, car, or loan repayments. You can always reduce the cash you spend on such items where agreeable. If it’s the house rent, you can move to a cheaper house or share the cost with someone. Some of these decisions may be hard to take but the results are fulfilling.
5. Use the 50:30:20 budgeting principle
This rule requires you to split your income into three groups. The first category (50%) is for the necessities which a person cannot do without. These include things like utilities, foodstuffs etc. The second group (30%) consists of savings and the last one, (20%) your wants and luxuries. Some people consider swapping the last two categories. However, you should aspire to keep your savings higher than your wants. This ensures that your emergency kit will never run dry.
6. Initiate an automated savings plan
Most people tend to save their income leftovers. That’s a bad financial management skill. Initiating an automatic savings plan ensures that you never change the savings amount. If you allow all the money to stay in your checking account, you’ll probably mess your savings account. So, no matter how pressed you are, don’t touch the 30% savings.
7. Avoid monthly charges
If you pay for your personal checking or savings account, it’s time to quit. There are several banks that offer free checking and savings accounts. Go for them. Credit unions also offer awesome customized services that you can take advantage of.
8. Sellout what you don’t need
You don’t need to stay with junk in your house when you can convert the same to cash. You can start this operation on your wardrobe, electronics and kitchenware. Anybody can be your customer. So, start with your friends, asking whether they need any of your stuff. The eCommerce websites also provide another great opportunity to sell your things. Register an account to sell on sites such as eBay, Tradesy, or Etsy.
9. Take on a savings challenge
Taking a savings challenge is one of the best ways to push yourself into saving. It becomes even more fun when your friends join you on the journey. With friends on board to challenge each other, it’ll be possible to push yourself harder. So, all you need to do is invite visionary friends with a common goal and purpose.
10. Have goals
Setting SMART goals is one of the best ways to keep yourself motivated. You need to set both short- and long-term goals. Have weekly, monthly and yearly goals. Try hard to avoid unnecessary expenses in your budget. You can do this by avoiding things like eating out.
Final recap
It doesn’t matter how tight your budget appears, there’s always a way you can save something. You’ll always have an item or items you can expunge from your budget to get an extra dollar. Above are the top ways you can follow to ensure you have something to save. Pick a few that you think will best work for you and you are good to go.