Previously we covered multiple methods on how to create great financial habits; now we’ll approach a new way of saving: how to save when money is tight. Because it’s easy to start saving and earning passive income after you get a hold of the basics of the financial habits of the rich.
You might think that the rich always live lavish lives and they’re a world apart from you. But after we learn their thinking, we understand why they reach where they are now. Take Elon Musk for example. He is the richest man on the planet but he doesn’t own a home and couch surfs at his friends’ places. Previously he had a bedroom at his Texas SpaceX headquarters, so … practically it was workspace – meaning tax deductible.
That’s why it’s a wrong deduction to think that if you don’t have a bigger budget, you won’t be able to save, invest and learn how to become financially independent. By creating different habits in time your life will automatically chance, as well as your perspective about money.
Learn from Minimalists
Minimalists are individuals whose goal is to get rid of all unwanted material things in their homes so they could live present peaceful lives. While they take this lifestyle to a meditative level, their habits are worth copying. Some of them can go to extremes, owning only a set of cutlery, one bed cover, and no decorations howsoever, but they’re a great starting point.
While our society pushes us through constant promotion to constantly buy nice cheap (or expensive) products each season, we can program our minds to buy only what’s necessary. We all have many Christmas decorations divided per color, type, and trend of the year. Do we really need to add more boxes to our attics or garages? Dollar store types of markets and china towns, though they might seem very good bargains have shown that people overspend while being in the stores. 76% of purchasing decisions are made when clients are already in the store aisles.
PROTIP: When deciding to go shopping, make a list with all the products you need and don’t buy anything else. Without a list, the probability of adding more products is over 50 percent.
Buy in Bundles
Firstly, cut the unnecessary products. Secondly, buy the essential ones in larger quantities. By shopping in bundles you’ll be given great discounts. Buy things that have long-term availability such as cans, jams, ketchup, paper. You’ll end up saving a few hundred dollars at the end of the year.
But because we’re learning how to save when the money is tight, before deciding to go shopping, see what you can get for free. There are many companies offering toiletries and almost any kind of product in exchange for an honest review.
Additionally, after deciding what you’ll buy, you can use a special shopping card which will give you a percent of the expenses back, along with other rewards. Use the Walmart Money Card to get up to 3% of all your purchases.
Also, check How to Save Money On Groceries.
Create Good Habits
By starting to make any action with intention, you will realize if some of them are making money go out the drain without you noticing it. Anything from
- Turning off the light when you leave the room or not leaving the water running the moment you’re not using it. Invest in water taps that can save 80% water wastage and you will later save thousands of dollars from your water bills
- Review the subscriptions you made and check if you are really using all of them. There are platforms with free information, courses, and movies that can replace even a $5 subscription. That’s $5 you can use to invest in a fund and $60 you saved per year.
- Those fitness memberships or paid apps can be exchanged with a huge platform of free exercises – on Youtube
Therefore, find the things you are willing to give up in order to save. Write them in a list and estimate how much you’ll save in a month. Make it a goal to have that amount in your savings account multiplied by 12 at the end of the year. This tactic will keep you motivated not on the habits you give up, but on the annual gain.
The best tip you’ll get on how to save when the money is tight is to use cash-saving apps in every move you do. There are apps that will find you deals, give you your cashback, rewards, and more in literally any field.
That’s why we recommend you to check our 10 Money Saving Apps to Help You Spare $1000/Year article. Discover how many ways there are for you to see the best prices on the market.
Finally, in order to give you even more advice on savings, you can check our 7 Less Known Ways to Save Money