Saving up when you are already on a tight budget can seem like an impossible task. However, if you use the right strategies, your savings can grow. It can be difficult at first, but having money set aside for the future (or emergencies) only adds to your peace of mind. Read on as we discuss some ways to save money on a tight budget.

1.     Think of Your Savings in Percentages

Most people tend to think of their savings in dollar amounts. When you do that, you are immediately confronted by a seemingly large figure that feels out of reach. For instance, telling yourself that you intend to save $500 this month can be unrealistic when running on a tight budget.

Instead, you should think of your savings in percentages. You can establish a savings goal and aim to save 10% of your paycheck. That way, no matter what you earn, you are saving something at the end of the month.

2.     Cancel Your Cable TV Package

This may seem a little extreme, but if you are looking for ways to save money on a tight budget, we suggest you cancel your cable. A monthly cable service package can be very costly. According to a 2018 survey, 78% of TV households have a subscription to a pay-tv service. What’s more, they spend an average of $107 per month on this service!

That’s a lot of money that you could save if you just cancel your subscription. You can switch to a streaming service, instead. Not only do you get access to a wider variety of content, but it is also much cheaper. Our number one choice for this is AT&T TV. We absolutely love this streaming service and it has saved us so much money per year for an amazing service.

The photo below will bring you to some great deals from AT&T.

3.     Check How Much You Spend On Food

Most of us spend a lot of money on food. After all, it is essential, and we are not saying you should starve yourself to death, just to save a little more money. However, if you are ordering too much takeout and have the habit of dining out every other day of the week, then you may need to reconsider.

It is much more economical to cook at home and eat leftovers instead of going out the next day. According to a 2019 study, prices for items used to prepare food at home increased by 0.6%. In contrast, the cost of dining out or ordering takeout increased by 1.8%. Given this disparity, it’s evident you can save quite a bit of money if you only dine out two or three times a month.

4.     Sell the Things You Don’t Need

You may not realize it, but they are probably several items in your home that you don’t use anymore (especially clothes!). Declutter your space a bit and set aside the things you don’t need.  You can have a garage sale and earn a little extra cash to add to your savings.

If you don’t have the time for a garage sale, you can always put up your stuff on eBay or the Facebook Marketplace. You’ll be tapping into a wider audience, and it should be much easier to find people who are interested in the items you are selling.

5.     Be Smart About Shopping for Groceries

If you make a habit of walking into a grocery store with only a rough idea of what you need, you will end up spending more than you intended.

To avoid this, we recommend making a list of items before you step foot inside a grocery store. Stick to it religiously, and you should be able to control how much you are spending. Besides this, you can also buy in bulk. Doing so can help you save up to 30% or more. Moreover, it helps you cut back on transportation costs since you’ll be making fewer trips to the store.

You can also use cashback apps such as Drop, Ibotta, and Checkout 51 for grocery shopping. This is a great way to save money on a tight budget. All of you have to do is scan your purchase receipt with your phone and receive cash back on the items you purchased. This can often go as high as 30%.

6.     Negotiate Your Bills

There are some mandatory expenses that you are bound to have each month. Utilities are one of them. However, depending on where you live, these expenses can be negotiated too. For people living in a regulated state, you won’t be able to do anything about your bills. However, deregulated states are a different story. There is a lot more competition for utilities in these states, which gives you the upper hand.

Call your utility providers and let them know you need a lower rate or you will switch to another provider. Timing is essential here. For instance, if your contract hasn’t expired yet, you might not be able to get a lower rate.

Wait until your contract expires and call your provider to ask for the best rates.  You will have to keep track of your contracts and when they expire to make the most of this opportunity. There are apps available that help you do this, so we recommend downloading one of them to make the process easier.

7.     Install a Programmable Thermostat

One of the ways to save money on a tight budget is to use a programmable thermostat. With energy prices swiftly rising, you need to be as energy-efficient as possible.

A programmable thermostat helps you improve your energy usage and make it more efficient. This allows you to save a lot of money. It also helps your house maintain a consistent temperature and offers the flexibility of changing the temperature remotely through an app.  

One of our favorite thermostats is the ecobee3 lite. This Thermostat works with either IOS or Android devices and integrates seamlessly with your preferred smart home system. ENERGY STAR certified, which could save you up to 23% annually on heating and cooling costs! Add a Smart Sensor to manage spots in your home that are to cold or hot and deliver comfort to the rooms that matter the most to you!

Wrapping It Up

If you are smart about it, there are several ways to save money on a tight budget. You can cancel services you don’t need, be more energy-efficient, control how much you spend on groceries and food, and negotiate your bills.

With some luck and a little bit of commitment, you should be able to boost your savings despite a shoestring budget. There are even some amazing applications where you can save money without even thinking about it just like Acorns and Digit.

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