8 Easy Money Goals to Get You Ready for the New Year
January 11, 2023Saving money can be hard when your budget is already tight. But it doesn’t have to be impossible. With the right strategies and creative ideas, you can save money even on a limited budget. In this article, I will share 20 tips for saving money while on a tight budget. From finding ways to cut back on expenses to taking advantage of discounts and freebies, these ideas will help you get started in building up your bank account. So, let’s jump right in!
Here are 20 clever ways to save money on a low income that can help you become more financially secure.
1. Make a budget and track your spending
Knowing where your money is going will help you make smarter spending decisions and keep your budget balanced. You can use a free budgeting app like the EveryDollar Budgeting app, sign up for my free personal budget tracker or go old-school with pen and paper. Regardless of which way you choose to go, using a budgeting tool will help you free up money to save or pay down bills.
Related Post: How to Budget Money for Beginners the easy way
2. Prioritize needs over wants
Before making any purchases, ask yourself if it’s something you need or something you want. If it’s not essential, consider waiting until later or skipping it altogether. You can also make a list of things you want vs. things that you need. Making a list for before a purchase can help you make a better decision. For instance, you may Need new clothes for work but you may Want designer clothes. You can always reward yourself with your want after you reach your goals. If you would like more examples of needs vs. wants then check out this article from The Berkley Well Being Institute.
3. Cut back on eating out
Eating at home is usually much cheaper than going out to restaurants, so try to limit how often you eat out and when you do, order the least expensive items on the menu. You can collaborate with the person you are dining with. Talk about sharing a meal and an appetizer. You can also check online to see if the restaurant is having specials or a buy one get one free entree. Did you know that some restaurants offer a free birthday meal or dessert? You can call ahead and ask! If you go online to Groupon.com and select food and drink you can find tons of deals!
4. Shop around for better deals
Always compare prices before buying anything—especially big-ticket items like appliances and electronics—and don’t forget about online stores too! You may find great deals online that aren’t available in brick-and-mortar stores. You can use money saving apps like Dosh where you receive automatic cash back when you shop or with Ibotta where you get access to online retailers, food delivery, travel and more.
5. Buy used products instead of new
Whether you’re looking for clothes, furniture, or appliances, there are plenty of places where you can buy used goods at a fraction of the cost of new ones (just make sure they still work). Take advantage of thrift stores, yard sales, flea markets, Craigslist listings, etc., and don’t forget to haggle!
6. Cut down on gas costs by carpooling
Carpooling with friends or co-workers is an easy way to save money on gas without having to sacrifice transportation altogether (just remember to take turns driving!). If your friend doesn’t drive, then figure out the cost of gas and miles that you drive and then your friend or co-worker can share in that cost. No-one to carpool with? No problem! I’ve got you covered! Try saving money with apps like Gas Buddy or Upside.
7. Cut down on phone bills with prepaid plans
Another way to save your money. If your phone isn’t tied up in an expensive contract plan try using prepaid minutes/data/texts plans from companies like Metro by T-mobile, Boost Mobile, etc., then you can save hundreds of dollars each year by switching plans as needed depending on usage.
8. Buy generic items instead of brand names
Generic versions of name brand products are often just as good but much cheaper than their pricier counterparts—so why not give them a try? This holds true for medicines as well. Try asking your doctor for a generic or try shopping around by using apps like GoodRx or SingleCare. With these apps you can search pharmacy’s in your area for the best deals possible.
9. Use coupons
Coupons are are the best way to save money. Check in your local newspapers and magazines for manufacturers coupons. Also, checkout some online printable coupon websites such as Coupons.com, Savings.com or The Krazy Coupon Lady and take advantage of them!
10. Stock up during sales
When non-essential items go on sale (like clothes or kitchen supplies), stock up if it makes sense; this way you won’t have to pay full price when those items run out later in the year (just make sure the savings is worth storing those extra things). I allocate money monthly for things like this so that I make sure I can afford it. You take what it costs to buy the item for let’s say a years supply and divide it by 12 months. Then enter it into your monthly budget! Don’t forget this step!
11. Avoid impulse buys
Impulse buys may seem tempting at first glance but they almost always lead to buyer’s remorse later—so just say no! If you feel super compelled then ask yourself if it is a need or a want. Go buy a coffee, take a breath and move on!
12. Make use of public transportation
Public transportation is one of the best ways for people who live in cities to save money while getting around town quickly and conveniently—so check out your city’s bus/train schedules and hop aboard!
13. Unplug unused devices
Electronics tend to draw power even when they’re turned off. Unplugging unused devices from outlets can reduce energy costs significantly over time. I turned off all of my fans when I wasn’t home in the summer and I saved close to $10.00 a month! That’s a $120.00 per year and trust me it adds up. Do the math!
14. Negotiate lower insurance rates
Most insurance companies offer discounts if customers bundle their policies together. Negotiating lower rates could result in substantial savings. Did you know having excellent credit can also save you money? It can save you a lot of it especially if your insurance company hasn’t pulled your credit since you signed up in the year 2000. A credit score in the 700 – 800’s can save you almost half of what you’re paying so get on the phone and call your insurance company!
15.Become an expert DIYer
Instead of hiring someone else to do repairs around the house (like painting walls or fixing broken appliances), why not try doing them yourself? Doing the work yourself can save you a ton of money and can be loads of fun. Challenge yourself to try something new like taking a used chair and repurpose it! Did you know that Home Depot offers free DIY Classes? Check them out!
16. Downgrade Your Cable TV
Cable TV bills are usually outrageous so consider canceling cable altogether or downgrading your package. If you get rid of cable and use an app like Hulu you can save a ton of money. Your probably using a lot of apps anyway so then why not cut the cord!
17. Use cash back credit card rewards or cash back websites
Cash back rewards credit cards like Chase credit card can provide generous cash back bonuses which can add up over time. You can also use other sites like Rakuten.com where you can join for free and get cash back for up to 3500 stores.
18. Switch banks
Credit unions typically charge fewer fees than traditional banks so consider opening an account with one. They are non profit so they only answer to their members and do not have outside stockholders and they are a safe place for your money. They are insured by the National Credit Union Share Insurance Fund (NCUSIF) and insure your money up to $250,000. Some of the best online banks and credit unions that either charge lower fees or high savings rates are SoFi, Ally Bank and Connexus Credit Union.
19. Ask family & friends for help
Don’t be afraid to ask family members & close friends for financial assistance from time-to-time. This can be a tricky thing. Not everyone feels comfortable doing this. I recommend only doing this as a last resort. No need to ruffle the family feathers…
20. Get creative & look for other sources
There may be other sources available that provide financial assistance such as employer benefits programs or government aid. Most of the government options are only there for those in a serious financial crisis. I highly recommend if you have to go this route, then take advantage of the governments free education or trade programs. This will be a sure fire way of not having to depend on these programs for a long time. Check your state or even the town or city site and see what is available to someone on a low income. Get creative & explore all options available!
***Bonus Tip***Earn to Save***
Earn more Money
This is my ultimate favorite. Yes, cutting back helps a ton but if you could cut back on expenses while earning extra income that can be a game changer! These days with the internet at everyone’s fingertips there can be so many options. Even bringing an extra $500 to $1,000.00 per month can help most families keep afloat. Really sit down and think about something easy to do while at home with the kids for instance. If you would like some ideas then you can check out my section on Side Hustles.
Final thoughts
I hope you had some eye opening experiences after reading my 20 clever tips for saving money on a low income. Hopefully you now have all the tools necessary for developing sound financial habits that will stick with you for years to come! Remember that saving money doesn’t have to be hard. It just takes some creativity and determination. So get started today! Good luck!
