Don’t Let a Tight Budget Keep You from Saving Money

When money is tight, people often give up on the idea of saving any. As soon as a paycheck arrives, the majority of it may be depleted to pay bills. Even if you are dealing with an extremely tight budget, there are still ways to save money.  The trick is to either make more or spend less. If making more isn’t an option, you will have to find ways to cut costs. The following tips are sure to help.

Seven Tips for Saving Money on a Tight Budget

1. Give Yourself a Weekly Cash Allowance  – If you usually use a debit card to make purchases, you can easily spend too much. At the beginning of every week – or whenever you get paid – withdraw a specific amount of cash. The cash will have to last until the next week or until you get paid again. If you run out before then, you will just have to make do. You’re sure to be surprised by how little cash you actually need on a daily basis.
2. Slash Your Car Expenses  – Most people need cars. There are ways to cut your car-related expenses though. Switching to a cheap car insurance  policy online can help. Driving less is helpful too because you’ll use less gas, and your insurance company might give you a lower rate too. Ride your bike and carpool whenever possible.
3. Buy Used  – There is nothing wrong with buying used. In addition to saving a lot of money, it lets you do your part to help the environment. You can buy everything from clothes to cars on a second-hand basis. Used items are readily available at local thrift stores, and you can also find deals on used items on sites like eBay and Craigslist.
4. Save Up for Major Purchases  – It’s tempting to give into the urge for instant gratification by financing a major purchase, but it’s a lot smarter to pay for things in full instead. Whether you want a new TV or a new sofa, start socking away money. Before you know it, you’ll have enough cash to buy what you need, and you’ll save a ton of money on interest fees.
5. Maintain a Good Credit Score  – Having bad credit can cost you dearly. It can affect everything from auto insurance rates to the types of loans that you can get. Even if you still qualify for a loan, having bad credit will mean higher interest rates. Make your payments on time and monitor your credit.
6. Prepare Meals at Home  – Dining out is expensive. Come up with a weekly meal plan and go on one major shopping excursion per week. If possible, get a membership to a warehouse store and buy staples in bulk. Try to prepare lunches for work and school ahead of time to stay ahead of the game. Treat yourself to one nice meal out per month to keep yourself on track.
7. Negotiate the Best Interest Rate Possible  – Even if you have good credit, you shouldn’t just settle for the first interest rate that’s offered to you. It never hurts to try to negotiate a lower rate or a better deal. If your credit card interest rates are high, call your credit card companies and try to have them dropped. Even if they only go down a little, you will spend less and save more.

Regardless of how tight your budget may be, you should always try to save as much as possible. Your nest egg may just come in handy some day.

Anthony King a Financial and Insurance specialist who writes for CheapCarInsurance.net.