THE BROKEN WALLET

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How to save money on a tight budget?!?

If you’re living paycheck-to-paycheck or have a tight budget, saving money might seem impossible. But when it comes to managing your personal finances, saving money shouldn’t be an afterthought—it should be a forethought.

Unexpected expenses will always arise. And if you don’t prepare for these or have money set aside for a rainy day, you could dig a deeper financial hole for yourself. Some people max out their credit cards when they’re in a financial bind or get expensive cash advances.

The truth is, a savings account is one of the best things you can do for your finances. So even if you can’t save a lot, something is better than nothing.

Here are 10 Creative Ways to Save Money on a Tight Budget

1. Take leftovers for lunch

If you’ve gotten into a bad habit of buying lunch every day—or even two or three times a week—commit to taking your lunch. This can be as simple as packing up last night’s leftovers.

But don’t stop here.

Whatever you would normally spend eating out for lunch every day, automatically transfer this money to your savings account. If you put $15 into your account each week, that’s $60 a month or $720 a year you’ll set aside for an emergency.

2. Get rid of a subscription service

Take a look at all of your monthly subscription services, and then commit to canceling one or two services.

Subscriptions can range from as little as $5 a month to $20 a month or more. If you cancel two subscription services at $10 a month each, that’s an additional $20 in your savings account.

Once you’ve canceled the services, pay yourself this amount every month going forward.

3. Shop for groceries online

Grocery shopping is another monthly expense that can blow your budget, especially when you buy items that aren’t on your list.

To stop buying stuff you don’t need, pre-order your groceries online and then pick them up at the store. You’ll save money because you’re more likely to buy only what you need.

Plus, you’ll get a running total as you add items to your cart. If you’re over-budget, simply remove an item.

If you typically overspend by $10 or $20 every week, pre-ordering your groceries online can save you another $40 to $80 a month, which can go into your savings account.

In addition, you can use cash back apps like Ibotta.com to save money without clipping coupons. In the time that I’ve had the app I’ve been able to save hundreds without trying.

Simply choose your offers before shopping, scan your receipt, and get paid – it’s really that easy. As a bonus, use code “renmwpo”at registration and Ibotta will give you $10 when you submit your first receipt.

4. Open an inconvenient savings account

Another creative way to save money on a tight budget is to open a savings account at a bank with inconvenient locations.

This can include opening a saving account with a bank miles from your home or work, or perhaps an online savings account with CIT Bank or another online financial institution. To get your money, you would have to initiate a transfer from your online savings to an off-line savings account, which can take one to two business days.

5. Save money from “would-be buys”

Fight the urge to spend impulsively by leaving your cash, debit cards, and credit cards at home. But each time you resist an urge, pretend like you “did” make the purchase. Deposit money you “would have spent” on an impulse buy into savings.

6. Split your direct deposits

If your employer offers direct deposit, ask to split your deposits so that some of your paycheck goes into your checking account and some into your savings account.

It doesn’t have to be a lot of money. If you can commit to saving $25 each pay period, that’s $50 a month or $600 a year. In most cases, you won’t even miss the money.

7. Pretend a raise didn’t happen

If you get a raise at work, don’t give into lifestyle inflation—buying new houses, cars, etc. Instead, pretend the raise didn’t happen.

If your previous income can cover your major expenses, direct deposit extra money directly into your savings account.

8. Negotiate your insurance rates

If you have an excellent credit score, call up your auto insurance company to see if you can get a better rate. You’ll never know unless you ask.

If you’re able to score a discount, deposit the monthly savings into your savings account. Also, contact your cable company and utility providers to see if you’re eligible for any type of savings.

Small discounts add up quickly. This can free up money for building an emergency fund.

9. Do a no-spend challenge

For an entire month, commit to only spending money on necessities. This includes housing, utilities, insurance, transportation, and groceries. Don’t spend any money on certain variable expenses like entertainment, recreation, and shopping. This can increase your disposable income for the month.

Whether you have $100 leftover at the end of the month or $300, deposit the surplus into your savings account.

10. Barter

Trading services is another excellent way to save money on a tight budget. Maybe you’re looking for someone to install a light fixture, a ceiling fan, or paint a room. If you know someone who can assist, offer to trade services instead of spending cash.

You can offer to housesit while they’re away on vacation, pet sit, babysit, or use your skills to help them in other practical ways.

Final Word on Saving Money on a Tight Budget

An emergency fund provides a safety net during hardships. But if you’re living on a tight budget, coming up with extra cash to build an emergency fund takes a lot of planning and creativity.

Just remember, something is better than nothing. So even if you can only save $50 a month, you’re doing a lot better than some.

What are other creative ways to save money on a tight budget? What has worked for you?