20 Ways To Save Money On A Tight Budget
By: Anu Lall
Tags: Savings Tips, Saving, Save Money Tips, Saving Money, Save Money

We all love quick and easy ways to save money — especially when we are on a tight budget. And once you realize how much you can save it’s easier to let go of expensive habits such as eating out. So if you’re looking for ways to save money on a tight budget, you’re in the right place! While it involves making some small habit changes, it’s a lot easier than you might think. Below are 20 ways to save money on a tight budget. These tips include making changes to groceries, dining out, your utilities, insurance and can help you start saving on a tight budget and jumpstarting other activities you may have planned for this money.

But before you get started on saving money you will need to have a clear idea of your monthly expenses. If you have a budget in place then you have the information already. If you don’t have a budget yet and you don’t feel like budgeting just now, don’t worry! This does not need to be a long, painful exercise.

Pull out your expenses for the last couple of months — you can do this by getting your bank statements and looking through them. Break out the expenses into various categories like groceries, eating out, gym memberships, utilities, insurance and so and so forth. You get the idea. Once you have this you are ready to go.

Of course, there are plenty of apps that can help you to get these expenses directly from your bank account and in time you can set these up. But if you want to start today then you don’t have to wait to get a budgeting app. Just grab some paper and a pencil / Excel sheet and you are good to go.

One more thing, the reason many people find it hard to get out of this rut of overspending is that they are convinced that the small changes like eating out less or spending less on groceries will not make any difference whatsoever to their lives. YOU CANNOT BE FARTHER FROM THE TRUTH. Small changes add up over time and you can save substantial amounts while on a tight budget.

So without further ado, let’s begin with the 20 ways to save money on a tight budget in areas you can seriously slash expenses.

Groceries

Quick trips to the grocery store without a list can be an expensive habit overtime. It is easy to overspend on groceries especially if you have a family. You may have also realized that a lot of this unplanned grocery shopping gets wasted or thrown away. Here are some ways to save money on groceries.

1. Go to the grocery store with a list — every single time!

Going on an empty stomach without a grocery list can prove to be disastrous for your grocery bill. We have all been victims of impulse shopping and trying out new products in the store. Best is to carry a list that you keep in the notes or lists section of your phone and that way you don’t have to replicate it every time and you won’t forget it either.

2. Buy certain items in bulk from large retailers such as Costco

Buying in bulk for a family makes a lot of sense. Figure out if there are items your family consumes a lot of and then compare prices to see if it makes sense to buy those items in bulk. I buy chicken breasts and separate them into smaller portion sizes that can be used over a time without any wastage. If you are space constrained in your home then limit the bulk shopping to essential items such as toilet paper.

3. Buy generic substitutes where you can

For many items generic substitutes are very similar to the branded products but are designed to appeal to the cost conscious shopper — YOU! so buy these items whenever you can.

4. Cut out impulsive, quick grocery trips by making a meal plan

Midweek buying or stopping to pick up a snack for the family is another habit that uses up serious dollars over time. So next time you pass the grocery store and think of a quick dash in to pick up something , ask yourself if you really need it and only then step in and buy.

Utilities

5. Review and negotiate new rates or get new utility providers

I have just finished this exercise for our gas and electricity providers and decided to continue with our existing one. Sometimes utility rates or plans change for the better and we are just not aware. Other times there are new providers that can give a better rate on your utilities. And sometimes what you have it the right one. You will probably need to set time aside for this activity and call each provider to negotiate a new rate or get a new provider.

6. Insulate your house better

With winter around the corner, your heating bills may be a lot higher if there are unwanted leaks for cold air to seep in. Do a thorough check of doors and windows and winterize your home to prevent sky high heating bills. Other ideas to save on your electricity bill can be found here.

Phone/ Cable

7. Shop around for a better phone plan

Just did this one too. I was on a high monthly plan that had been bothering me for months. But inertia… refused to let me take any action. I have finally swapped out for a much better plan (really was not difficult) and cut me phone bill to a third of what it used to be! There are usually so MANY cell phone plans going on that it should not be hard to swap to a cheaper one.

8. Live without a home phone

Most of us live without a home phone these days so you may already be doing this one. Given most business and other contact information accept your mobile number then there are savings to be had by cutting out that landline altogether.

9. Get rid of your cable package

You can get rid of that expensive cable package in favor of cheaper Internet based services such as Netflix and Amazon.

Insurance

10. Shop for a cheaper car insurance

If you have a good driving record, have never had an accident, or gotten points on your license, it might be worthwhile to contact your car insurance provider to see if you can get a better rate. Believe it or not, changing yourcar insurance is relatively easy. There are tons of options out there and you can compare price quotes online to see if you can save some money.

11. Shop for a better health insurance and cash plans to save money

Again like your car insurance do your research before you get your health insurance. There are many plans out there offering different plans for different stages of your life such as with or without children. Also there are cash back plans available that can be useful depending on how much you use your insurance.

12. Walk or bike instead of using the car

You can save on gas if you choose to walk or bike PLUS STAY HEALTHY by doing so! What’s not to like?

13. Stop shopping for non-essential items

OK this may be a tricky one since you may think everything is essential — like I do. But try to shop only for those items you cannot live without for a couple of months. Your bank account will be much happier for it. This will give you a clear idea of what expenses are truly necessary. Even though you may add in some of the non essential items over time you will know that if need be you can certainly live without them!

Dining Out

Before you can reduce dining out you need to know why you eat out — is it a convenience or a luxury?

14. Reduce the number of times you eat out in a week or the month

Another way to save money on a tight budget is to eat in. If you find yourself eating out several times a week, make a conscious effort to cut it down to only once or twice a week. Eating out is expensive.

So as an alternative, why not buy some cookbooks or use the many recipes online. You can meal prep in weekends if you don’t have time in the week.

Also going out for lunch is cheaper than dinner since many restaurants offer a lunch menu. So try going out for lunch instead.

15. Skip the drinks when you do out to eat

Drinks have as much as a 30% — 50% markup, so consider going for water while ordering. You can start your evening with some wine before you leave or have a nightcap when you get home and skip the pricey beverage out altogether.

16. Do your own mani pedi

Ladies, instead of going to the nail bar every week try to do so once a month. You can do your own nails in between and while it’s not as pleasurable your bank account will make you happy. Also you get a chance to use all those products you have sitting at home!

17. Stop using your credit card — rely on that debit card only

You can stop adding to those expensive interest payments on your credit card if you stop using it. Instead use your debit card only which takes the money straight from your bank account. It let’s you keep a closer watch on your spending habits and you DON’T incur high credit card interest.

18. Compare before you buy any big

Buying a TV — stop and compare. There are many deals going around and with a little bit of patience you might find a better deal somewhere else or you might realize that a different cheaper model actually has more of the features you want than the more expensive one.

19. Shop from your favorite clothing retailers when items go on sale online and use coupons/discounts where you can

There is very little reason to pay full price for clothing articles given the number of retailer’s online sales that are happening all the time. In-store clearance inventory is limited to what’s on-hand and in storage for that location, but going online means you have access to a much larger inventory from the retailer’s warehouse. You can get better deals and more sizes by checking the retailer website before you attempt to buy in-store.

20. Check if you are paying monthly bank fees — and change that!

If you are paying monthly checking or savings account fees you need to change that immediately. There are several banks that will offer free checking and saving accounts — so do your research and change your bank if need be.

Another area that we tend to overspend is around the holidays especially the big ones like Christmas. Here’s how you can cut down holiday expenses.

The Bottom Line

There are many, many ways to save money if you are on a tight budget.

No you do not have to starve yourself or make drastic changes to your life. You simply have to be mindful each time you spend money.

It’s easier to save when you have financial goals and a budget where it is easy to track your expenses. So create financial goals and track your spending

Let me know what are the other ways you all save money below so that we can grow this list together!