How to save money on low budget

Money is a huge daily stressor. It’s easy to spend and hard to keep track of it all. But believe me, budgeting is not all that difficult, it requires a little extra thought and planning. How to Save money is the question I have always been asked with. The amount of time you spend on budgeting is cheap, compared to the damage of unmanaged spending will end up costing you. It’s easy to feel intimidated by budgeting, but through learning the ins and outs of financial sorcery, it will become second nature to you (stay committed to your goals and we promise you’ll start seeing positive changes!).

Calculate Your Income

To budget, you need to have a good idea of your monthly income. Look over your last few paychecks to get an idea of the minimum amount you make per month. Some jobs don’t provide a stable income, which can make things difficult because budgeting is easier if you know how much money you can expect to bring in each month. Write the minimum amount that you know you will receive. You’re now ready to budget!

How to Save money
How to Save money

How to Save Money- Master Your Bills

The first place to start is with your bills. Make a list of all your bills and how much they cost per month. Some bills (like utilities) can change every month, which is difficult but write the maximum amount you might need for these bills. You’ll want to make sure that your minimum monthly income will cover the cost of all your bills.

Once you’ve compiled your list, subtract the total from your monthly income to find out how much money remains afterwards. If you get paid biweekly instead of monthly, you can arrange your budget in a way to only pay the bills due during each pay cycle. Or you can add up all your bills as a monthly lump sum and put aside half of the amount you’ll need from each paycheck.

Target ‘Needs’ To Save Money

With the money that remains after your bills paid in full, estimate how much you must put aside for other needs. Needs are things like medication, gasoline for your vehicle, groceries, and basic toiletries. These amounts can be flexible. If the money remaining after paying your bills is low, consider grocery options are on the cheaper end to help hold you over until your next paycheck or until you find a better paying job.

Save, Save, Save!

Put aside a small amount of money into savings every paycheck. Even if it’s only five dollars, over time that money will add up. Once it goes into savings, pretend it’s not there. Don’t even think about using it unless you absolutely have to.

Eliminate ‘Wants’- To save money

Make a list of things that you would like to purchase. Remember that it is more than okay not to buy things you want immediately (in fact, we recommend making a wish list and waiting 30 days for major purchases that could break the bank!).

With whatever money you have left after paying your bills and meeting your basic needs, you can buy things you want (within reason) or save up for them. Just make sure you aren’t treating all of your remaining money, as spending money once all your monthly responsibilities fulfilled. This is not the same concept as occasionally treating yourself to a special rewarding purchase. This is one of the simple ways to save money.

Commit To A Budgeting Program

There are a lot of budgeting programs out there. If you want to make an electronic budget unique to your circumstances, Excel is a good program to start that process. However, if you’d like to try some simple apps that have already done most of the work for you, we suggest checking out Every Dollar and MintPocketGuardHome Budget with SyncWallyDollarbird, and Honeyfi  well-reviewed apps. Try a few and see which one works best for you. Everyone is different, and so is every budget.

Sign Up For Budget Billing

Most utility companies offer ‘budget billing’ programs that you can sign up for electronically, over the phone, or in person. They can take your bills over the course of the past year, averaging out your monthly payment history, to create a steady monthly payment plan. This is an amazing service we suggest taking full advantage of!

Start saving now!

Go ahead and use the saving strategies to save money. Because to save money means having more to spend. We hope the tips to save money help you in tight budget.

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