Although we are not saying that it is easy, it is possible! In fact, you’ll feel better knowing that you set aside some money in case of unexpected emergencies or for upcoming events like holidays.
But if you are someone on a tight budget, you are probably wondering how you can find ways to save a little money. Based on my experience working with many individuals and families, this can be a great challenge.
Here we tell you how you can do it. Then, we will show you some factors that can make it difficult to save money.
How to save money on a tight budget
Let’s take a look at some simple ways to start saving, even on a small budget. This guide will also help immigrants who are working to settle in their new countries.
1. Keep a record of your expenses
Even a few dollars here and there can really make a difference. You would be surprised to see how small amounts of money can get away. The first step to saving money is watching where your money is going. Even that 99 cent coffee you got while filling up your gas tank counts.
Keeping track of your expenses is as simple as saving all your receipts and writing down each of your purchases. It’s easy to lose track of your finances.
That way you will remember that the money you spend now is money that you cannot save towards that goal. Maybe it’s a matter of cutting back a bit. Keeping a visual reminder of a financial goal you want to save for, such as a vacation or a new car. Or maybe you’re spending more in certain categories than you realize, and it’s time to be more careful. Once you start recording all of your purchases, take inventory.
2. Find a support system
For most immigrants, family is a big part of why they decide to come to the United States and using that connection for good is powerful. We often overlook how powerful a positive influence from a friend or family member can be.
So finding people who can support you and help you hold yourself accountable will motivate you to save. Navigating the reality of being in a new country is hard enough without worrying about money.
You can even ask them to ask you periodically to see how your goal is progressing. To find a support system, start telling your family and friends what you are trying to accomplish.
3. Create a small weekly savings challenge
Then, as you progress, you can increase your challenge. It also allows you to see the effects of changes in your habits. A weekly challenge allows you to see your short-term financial habits. Keep increasing that amount until you reach the number that is comfortable for you to save each week.
Starting with a big savings goal is great, but it can also make you feel overwhelmed and you could abandon your goal altogether. For example, start saving $ 1 and put it in an envelope, then increase that amount to $ 2 the following week. It is preferable to start small, both in dollar amount and timeline. Seeing how this amount adds up — no matter how small — is proof that you have what it takes to save.
4. Take advantage of the pantry
Freedman has managed to meet this challenge with great success, although some nights he has eaten strange combinations of foods. Most people have items in their fridge or pantry that they don’t know are there. “But it doesn’t matter, they will feed you and it will be one more night without having to go shopping,” he says. Challenge yourself to use everything in your cupboards, fridge and freezer before heading to the store.
Take the money you save from your shopping budget and put it in a separate savings account.
5. Use a budgeting tool
Banking apps also include budgeting tools these days. There are tons of free tools available to help you keep track of your money and budget. That way, you can stay on top of your finances and save money to save. Henderson suggests doing an online search and trying some of these tools before settling on your favorite.
6. Use cash
Using cash allows you to see where your money is going physically. Once that money is gone, it is gone. For example, you have $ 100 set aside for groceries, and you put that amount in an envelope. Some people like to categorize their expenses by putting various amounts of money in budget envelopes.
Also, you cannot spend more than you have, unlike what happens with credit or debit cards (if overdraft is an option at your bank). Using cash will also help you be more aware of when and where you spend your money.
7. Examine your major expenses
Take a look at the biggest expenses for most people, like housing, food, and transportation. Or you can reduce the chances you eat out of home during the coming weeks? While it’s great to cut back on all areas of your budget, cutting down on the biggest expenses can help you save money faster. Can you negotiate your rent or find a less expensive place to live?
Negotiate a lower rent if you offer to do some repairs on the owner’s property. If you are able to get a cut, take what you would have spent and put it directly into your savings.
8. Sell things you don’t use
eBay is a popular example. Gather your items and start looking for local websites, apps, or stores that can pay you for them. Look around you to see which items are not being used that have any value. You can take the proceeds from what you sell and use it to open your savings account.
Popular items include books, electronics, and even certain clothing brands. The amount you will get will depend on the demand for the item and its condition.
9. Make comparison shopping a habit
Inbotta is one of these applications. You’d be surprised how many stores have different prices for the same items, online and in your local area. Before you buy, take the time to look online to see where you can get the best deal. There are also browser extensions and apps that search for coupons and do the comparison shopping for you, which helps when you’re short on time.
10. Invest in yourself
Maybe that book you picked up at the library can teach you to negotiate a higher salary, helping to take a break from your tight budget. Learning about personal finances and ways to increase your marketing skills will help you in all areas of your life.
Even learning more about cooking can save you money eating out. Remember to make yourself and your future a priority.
Shop at dollar stores! You can find decent wrapping paper and decorations, leaving you more money to buy gifts or food for your Christmas meals .
Buy fewer gifts, instead, stick to a smaller list like your immediate family’s and find an alternative, like hosting a meal for others. it’s natural to want to go all out, but friends and family will understand if you can’t afford it.
Cut expenses temporarily. Once you’ve tracked your expenses, it’s easy to see if there are ways to cut back for a few weeks. For example, maybe you can take public transportation instead of driving your car and use what you save on gas to make gifts. Remember that it is only for a few weeks and that things can return to normal once the holiday season is over.
You may be a great cook! consider making cookies or creating a cookbook. Small items like framed photos can be very satisfying gifts.
Find cheaper gifts! It is the intention that counts, not the gift itself.
Save money on fees and charges. Research exchange rates and send money home when rates are better. Try a money transfer app for lower transfer fees than those typically charged at a bank or agent.
Why is it so difficult to save money
If you have a fairly low income, saving money understandably feels impossible. You have to figure out how to manage your income in order to pay for basic necessities. Your job options may be limited for now, as you are settling in a new country.
For example, because you want to help your loved ones, you send a large part of your salary home. When you live on just enough to meet your needs, it can seem like you spend all your time putting out fires every day.
Whatever your situation, it is important to know what financial situation you are in. If you grew up in another part of the world where saving money is not used, it can be difficult to start saving, especially if none of your friends or family usually save. Even if you earn more than enough to cover your bills (meaning income isn’t the reason you can’t save), your budget may be tight.
You don’t feel like you have ‘extra’ money, so you don’t feel like you can save for emergencies and it’s very stressful to live this way.
But You Can Do It
Saving money on a tight budget can be challenging, but with a little creativity it can be done. When you see your savings grow from a few dollars to a few hundred, don’t forget to pat yourself on the back for all the hard work it took to get there. Start with the list above and remember that you are investing in your financial health.
