Smart Tips to Save Money on a Tight Budget: Practical Ideas for Financial Freedom
Introduction
When the budget is a little tight, every penny matters a lot. You can remain financially stress free by doing smart planning. Here we will talk about some such tips which will help you in keeping your finances stable and will help you in saving.
1. Making a budget and following its discipline
Making a budget with proper planning is the first step of a successful financial strategy.
• Analyse your monthly income and expenditure properly. Divide all your expenses into categories wise.
• Follow the 50/30/20 rule. Set aside 50 percent of your monthly income for your rent, groceries and your bills. Spend 30% of your income on your entertainment and shopping and save your 20% income.
Example – Let’s assume your monthly income is $10, out of $10 you have to spend $5 for your rent bills and crockeries, from the remaining $5 rupees you have to spend $3 for your shopping and entertainment and you have to save the remaining $2.
2. Reduce or avoid unnecessary expenses
In a tight budget, you take a smart move by cutting down your unnecessary expenses.
• Home cooked meals – if you like to eat outside, then you should eat home cooked food. By doing this, you will be able to reduce your unnecessary expenses and you will also be able to pay attention to your health, which is also very good for your health. Your home cooked food.
• Subscription reviews – Netflix prime video, you should look at these critically, if you rarely use them, then cutting them down is a good move.
• Public transport or carpooling – If your commute cost is high then you can reduce your expenses by using public transport and this option is also quite economical.
Pro Tips– Buy crockery items in bulk and stock up as per the availability.
3. Take full advantage of cashback offers and discounts
Getting a little cashback discount always gives a good feeling and if you have a little tight budget then it also gives you a little relief there.
• Use cashback apps like trade Paytm on phone. Whenever you do grocery or FIR rent on cable, you should use these apps. You can use these apps while shopping. These apps give you a little cashback on paying the bill here.
• Use coupons or sales always. Whenever you go for shopping, compare the prices of two platforms before buying the item, like in India, compare the prices of any one item on Flipkart and Amazon and purchase whichever is comfortable for you.
• Local market and wholesale Market offer you better deals than online stores, so as much as possible you should avoid online stores and buy your item from local market or wholesale market.
4. Create an emergency fund
It is very important to have a small emergency budget whether the budget is tight or not.
• Develop the habit of saving, whether you save 500 or 1000 every month.
• Invest in options like fixed deposit or recurring deposit, these are very effective for your long term investment.
• Emergency fund helps you in your unexpected expenses like medical emergency or FIR, home repair, so you must keep an emergency fund.
5. Explore opportunities for extra money
To balance your tight budget, an extra income source will be very helpful for you.
• Freelancing – Sell skills like writing, graphing and tutorials online.
5 ways to earn passive income
• Affiliate Marketing – Generate income by promoting your affiliate link on your blog or your social media platform.
• Old item sell earn money- You can sell old gadgets, furniture and clothes which are useless for you and earn money. You can use platforms like Ola and Quicker for selling.
Example – If you are a graphic designer, you can earn $1000 to $1500 per month.
Bonus tips for long term saving
• Rules to avoid impluses – Before buying anything, always think whether I need this thing or not. If you don’t, skip that thing. This will control your unnecessary expenses.
• Energy saving tips- Switch off unnecessary lights and electronics, this will save your electricity and reduce your bills
• Buy second hand items- New things are always expensive so you should always purchase some things second hand like electronics, lights, furniture etc. You can save money by buying things second hand.
Conclusion
Saving money is a continuous effort which demands discipline and smart decisions. If you consistently focus on things like budget control and saving, your finances will become stable. Your journey may be a bit slow but small things will keep motivating you.
