Ways to Save Money on a Tight Budget
February 4, 2021 | Louis Tully
According to multiple surveys, over 60 and up to 70 percent of Americans live paycheck-to-paycheck, and if you are reading this article, you are possibly one of them.
We are all from different walks of life. Our lifestyles differ, our jobs are different, and so are our incomes. What is similar, is this: it doesn’t matter how much we make, we spend it all by the end of the month.
Saving money is not always about how large your income is. Not exactly. It’s about how good you are at controlling your budget.
See, no matter how tight your budget is, you can always save, at least a little. And that little could be the difference between handling an emergency on spot and busting your budget. So, if you want to learn ways to save money, keep reading.
The Top 4 Best Ways to Save Money on a Tight Budget
1. Make Saving Your Priority
One of the key ways to save money on a tight budget is shifting your priorities towards saving money vs. spending. What is more, it should be a continuous month to month activity: put aside a certain amount first, then budget for everything else with what’s left over.
There are a few ways to do this:
- Choose a set amount (say, $100 a month);
- Use the 50/30/20 method (where you lay aside 20% of your paycheck for savings);
- Go after one of the money-saving challenges, such as no spending month.
2. Figure Out Where Your Money is Going – and Cut the Unnecessary Spending
This could be the hardest thing on the list because it requires time and dedication. However, being one of the most proven ways to save money on a tight budget, it has to be done.
You’ll need to take a careful look at your bank statements and figure out not only where the money is going monthly, but also which categories can be cut outright to decrease your expenses. By doing so, you will learn how to be more confident and feel more in control even if you're financially struggling.
This could be anything: a gym membership, unused subscriptions to multiple streaming services, or even cable (cutting cable could save you over $100 each month). Pick one or two subscriptions and cut the rest or switch to free versions if you can.
3. Renegotiate What You Can’t Cut (And Decrease What You Can’t Renegotiate)
Did you know that most of the bills you pay monthly could be renegotiated? Starting from your credit card payments to your car insurance and medical bills – it’s possible to renegotiate them as long as you are open minded and have good communication skills.
It’s likely that if you report to the organization that you’re currently going through some financial challenges and need their assistance, they will be able to come up with an alternative payment plan for you.
There are even apps to help you renegotiate your bills – try Truebill or Ballshark.
There are bills you aren’t likely to negotiate – like utilities or rent. The best you can do here is to figure out how to “manually” decrease your expenses. So, turning off the AC while you’re at work, keeping the light on only in the room you’re currently in, using energy-efficient utilities might help. If you’re single, try finding a cheaper rental, such as a shared house.
4. Consolidate Your Debt
Consolidating your debt is another way to save money on a tight budget, if you have multiple debts. Consolidation means combining your debts into one, which will allow you to put a single payment towards it monthly, typically at a lower interest rate.
This should allow you to decrease your monthly debt payments overall and put the freed-up money towards your savings.
The important thing with debt consolidation is not to rush: you need to do your research, explore multiple options, and be careful with how much monthly payment your consolidated debt calls for, as well as how much you’ll be paying on it in the end.
Bonus: Know When to Spend Money
If you’re suddenly hit by an emergency that requires spending money – prioritizing saving over dealing with it is likely to cost you more down the line, as the problem will exacerbate.
Even if you don’t have an emergency fund set up yet – you need to get some cash together and deal with it fast. A short-term fast loan like a title loan is a pretty optimal option and one of the ways to save money on a tight budget in that case.
Why a Title Loan?
Because title loans online are quick and easy: you only need a couple of documents along with your car, and you’ll get cash the same day.
Since it’s a secured loan (your car title acts as collateral), we will accommodate all types of income and pay no attention to credit scores, so you can apply even if your credit is bad or nonexistent altogether.
How Do I Get Title Loans in Wisconsin?
With title loans in Wisconsin, you can get up to $15,000 cash.
You can easily apply for car title loans from the comfort of your own home with Wisconsin Auto Title Loans, Inc. by going to our Home Page and filling out the online form.
You’ll be contacted by the store representative who’ll set up a meeting with you.
At the meeting, you’ll need to provide them with:
- Your car;
- Your car’s lien-free title in your name;
- Your government-issued ID (you must be over 18).
The store representative will assess your vehicle and paperwork and determine if you qualify for the loan. If you’re approved – you’ll get the cash the same day.
Saving money is not easy, especially if your budget is tight. However, following ways to save money on a tight budget presented in the above article can ensure feasibility of this challenge.