Do you feel like money flies through your bank account? As soon as you make it, you have to pay it out to cover bills or normal spending, right? If you’re on a tight budget, you probably feel like it’s impossible to save money.
But, with a little creativity and dedication, there are 25 ways to save money on a tight budget and you won’t feel like you’re sacrificing.
Ready to save money? Let’s dive in.
1. Pay yourself first
This first tip is the most important. Most of us are guilty of paying ourselves last. In other words, you pay your bills and do your regular monthly spending BEFORE saving. What happens at the end of the month?
You have nothing to save.
Instead, pay yourself first. Set up an automatic transfer with your bank or direct deposit with your employer. Even if it’s $5 each time, save something. If that’s too much, consider an app like Acorns that rounds up your purchases to the nearest dollar, and saves the spare change.
2. Create a budget
Don’t think of a budget as a bad thing. It’s like giving your money a map – you’re telling it where to go. There’s no right or wrong way to budget.
Many people use the 50/30/20 budget with success. The numbers are the percentage of your income you should spend in the following categories – necessities/discretionary spending, and savings/debt payoff.
If the 50/30/20 budget works for you, categorize your expenses by ‘needs,’ ‘wants,’ and ‘savings.’ The line between needs and wants may blur slightly, but be realistic. For example, you need a cellphone, but is an unlimited data plan necessary? The basic plan may fall into needs, but the extra data plan should come from your 30% ‘wants’ budget.
Don’t forget to budget for savings and/or debt payoff. If 20% of your income is too much right now, start small, but work your way up.
3. Meal plan, shop sales, and use coupons for groceries
Groceries make up a majority of most families’ budgets, but there are ways to save on groceries as well. Before you head to the store, make a meal plan. Start by shopping in your pantry and refrigerator. Make meals out of what you have on hand.
Any food you need to supplement with, try to shop sales at the local grocery stores and look for coupons either in the paper (clipping coupons), online, or on the store’s app using their loyalty program.
For example, Target has an app with Target Circle coupons. You select the deals you’ll use in the store and when you check out, just scan the barcode in the app and you’ll get the deals instantly.
4. Switch to generic products
If you’re stuck on name brand products, try using generic products – they are often just as good, just in different packaging.
Try changing products slowly, starting with products you don’t care about as much. For example, if you’re hooked on name brand cereal or yogurt, but typically bounce around with different brands of paper towels, try generic paper towels while still buying your name brand cereal or yogurt.
Walmart and Aldi usually have a great selection of store brand products that are just like the name brand. (Hint, many generic products are made in the same facility as their name brand counterparts).
5. Have Meatless Mondays
Work a Meatless Monday into your meal plan each week and cut down on your meat costs. We’re all programmed to include a meat at mealtime, especially at dinner, but it can make your grocery bill much more expensive.
Check out the meatless meal ideas on Pinterest if you’re tired of spaghetti and macaroni and cheese. There are thousands of ideas for everyone.
Make it fun for your family to have Meatless Mondays by letting every family member pick a new recipe each Monday. Experimenting and cooking together may even bring you closer together, while you save money.
6. Pack your own lunch
Buying lunch every day adds up, taking away from money you can save. If you spend an average of $10 a day on lunch, that’s $50 a week and $200 a month, or $1,200 a year. That’s a nice start to your emergency fund or saving for a personal finance goal.
Instead of eating out, pack your own lunch. The easiest way is to make extra dinner and bring leftovers for lunch. If you don’t have leftovers or want something new, check out these ideas for creative, healthy and delicious ‘brown bag’ lunches.
7. Make your own coffee
Starbucks is a fan favorite – even non-coffee drinkers agree, but just like eating lunch out, it adds up fast. A simple cup of coffee can cost an average of $3, and a ‘fancy’ drink can cost well over $5. If you visit Starbucks 5 times a week, that’s $15 – $25 a week on coffee.
Instead, make your own. You can even make ‘fancy’ coffee drinks if that’s your preference. Here’s a YouTube tutorial on how to make a Mocha Frappuccino.
8. Shop clearance sales
If you haven’t shopped clearance yet, start now, especially if you love Target. At Target, they clearance items weekly on a rotating schedule. Get to know your local Target’s clearance schedule and take advantage of the sales. They typically keep products at regular price for only a month or two before they hit the clearance shelves. If you see something you ‘must have’ give it a few weeks and watch the price drop.
Other stores offer clearance sales too – Kohls, Dicks’ Sporting Goods, and just about any clothing or household goods store has a clearance section. Locate the area in your store or shop online and make the most of the lower prices.
9. Use coupons every time you shop
It’s easy to shop with coupons today, whether you shop in-person or online. Always search for a coupon before shopping. Search for coupons by store or category and see how much you can save just by taking a few minutes to check for coupons.
10. Do your own nails
Women love getting their nails done, but at $30 – $50 an appointment, it can add up fast. Rather than getting your nails done every two weeks, space it out. Make it more of a ‘treat’ than a regular expense. In the meantime, give yourself manicures at home for a fraction of the cost.
11. Do your own hair
Hair appointments are just as important to women as nail appointments, but again, waiting longer for the appointments saves you money and makes the time at the salon more special.
If you color your hair, consider choosing a color that won’t fade as fast or supplementing with root touch ups in between appointments. If you feel like your hair grows out too fast and you don’t know what to do with it, check out the hashtag #hairstyles on TikTok for all the latest tips and tricks.
12. Declutter your closet and sell unwanted items
When’s the last time you went through your closet? Chances are there are clothes in there you haven’t worn or will wear again. What about kids’ clothes, toys, or household items?
Decluttering your home not only clears your mind, but it fills up your bank account too. Sell your items on eBay, Craigslist or Facebook Marketplace and save the money earned.
13. Shop for cheaper insurance
Insurance is a necessity, but you shouldn’t overpay for it. If it’s been a while since you’ve shopped around for cheaper insurance, do it soon. Car, home, and even health insurance premiums increase regularly. Most people don’t pay attention and just pay the premiums, but what if you could save money?
Use a site like Zebra to compare car and home insurance quotes, and shop the marketplace for health insurance if you don’t have coverage through your employer.
14. Get rid of unwanted subscriptions – Trim
Do you know how many subscriptions you pay for each month? If you’re like most people, you sign up for ‘free subscriptions’ only to forget about them for months, because the charge goes straight to your credit card.
Go through your bank and credit card statements to see what subscriptions you pay for and can cancel. If that’s too much, use an app like Trim to alert you of subscriptions and even help negotiate any bills.
15. Grow your own produce
Rather than buying produce at the grocery store for inflated prices, grow your own. Not only will you save money and have delicious fresh produce all the time, but you’ll know what goes on your fruits and vegetables.
Even when you buy organic produce at the store, you don’t know what’s on it – growing your own, you’re in charge. If you’ve never gardened before, here’s a great tutorial to get you started.
16. Save on electricity
Look at your electricity bills. How do they compare to your neighbor’s? Many utility companies put a comparison on your bill for you to see if you’re doing better or worse than those around you.
If you’re using more electricity than most, figure out how to cut back. A few simple ways include:
- Unplug appliances that aren’t in use
- Shut lights off when you aren’t in a room
- Use a programmable thermostat so you don’t use the A/C when it’s not needed
- Install energy-efficient light bulbs
- Use a smart power strip that cuts an appliance’s power when not in use
17. Cut back on your data plan
You need a cellphone, but do you need an unlimited data plan? Look at your data use over the last few months. Do you exceed the limit of a less expensive plan? Are there ways you can cut back on your use?
A few simple ways include:
- Use WiFi when it’s available
- Save downloads for when you’re at home on your WiFi
- Don’t let your videos automatically play
- Close out all apps after using them
18. Ditch the gym membership
Staying healthy is important, especially today, but it doesn’t take a gym membership to stay fit. Instead, save the money and do workouts at home for free. YouTube has plenty of free workouts, as do free apps like the Nike Training Club app.
19. Stop using credit cards
It might seem ‘smart’ to use a credit card when money is tight, but all it does is make your budget even tighter. When you put expenses on your credit card and don’t pay them in full, they accumulate interest and keep accumulating interest until you pay the balance in full.
Rather than using credit cards, budget your expenses and even your ‘splurges.’ If you find something you want, don’t whip out the credit card, instead save up for it so you don’t have to use your credit card.
20. Swap babysitting duties with a friend
Parents need to get out without kids once in a while, but babysitting expenses can make any date night or even necessary time away from a doctor’s appointment even more expensive.
If you’re a single mom, you don’t have anyone to watch the kids while you run out and take care of important tasks.
Rather than paying for babysitting, swap babysitting duties with a friend. You watch their kids and they watch yours – this way no one has to spend money, but they can get the necessary time away.
21. Use the library for free entertainment
Use your library for all its worth. Even if you aren’t an avid reader, libraries have access to many types of entertainment including movies, programs, and even passes to local venues, such as the local zoo or museums.
22. Cut cable
If you’re spending more time at home, you probably don’t want to cut cable, but there are other more affordable ways to get your entertainment. Stream cheaper services like Netflix or Hulu for a fraction of the price and even more entertainment opportunities.
23. Shop for holidays year-round
Rather than spending a lot of money in November and December for holidays, spread your spending out throughout the year. Make your list of who you buy for at the start of the year and jot down things they like. As you shop throughout the year, pay attention to clearance deals and other sales you can take advantage of to spread out the spending.
Do this for birthdays and any other holidays you buy gifts. Keep a gift closet with your gifts, and shop the closet rather than the store when it’s time to give a gift.
24. Keep up with your car’s maintenance
You may think you’re saving money by not doing work on your car, but keeping up with regular maintenance is the only way to keep your car running right. If you don’t keep up with the maintenance, it may make other parts wear down faster, costing you more money in repairs.
Pay close attention to the manufacturer’s regular maintenance schedule and follow it as closely as you can. You don’t have to take your car to the dealer for work, though. Look for coupons and deals in your area and save money on the regular maintenance.
25. Put money in your savings account
The money you save using the above tips is great, but if you don’t put it in your savings account, you’re defeating the purpose. Don’t save money in one area just to spend it in another. Instead, transfer the money to your savings account right away and let the interest compound.
You’ll accumulate a larger balance and have more money for emergencies, financial goals, or long-term needs, such as retirement, paying for college, or medical expenses.
Ways to Save Money on a Tight Budget FAQs
What is the 30-day rule?
Don’t impulse buy items that aren’t on your list. Instead, wait 30 days to see if you still want the item. Typically, the item falls off your ‘radar’ and you no longer want it. If you do, find a way to save for it, avoiding credit card debt or putting any other financial strain on your budget.
What bills can you cut to save money?
Pull your bank statements and see where you spend your money. Many people don’t realize where their money goes until they take this step. Start with unnecessary expenses, such as cable, excessive data plans, and subscriptions you don’t need.
Also, negotiate standard bills, such as utility bills, insurance, and even the interest rates on your credit cards to save more money.
How do I stop overspending?
Breaking the habit of overspending is hard, but with help you can overcome it. Set a budget and stick to it. If you find that you go over it, get an accountability partner, such as a family member or friend. Join a budgeting group online, or work with a financial advisor to keep yourself on track.
Take the Steps to Save Money on a Tight Budget
Anyone can save, it just depends on how creative you get. Saving doesn’t mean sacrificing, it just means being deliberate about where you spend your money and how much you save.
Make saving a regular part of your budget, even if it’s only a few dollars to set yourself up for financial freedom.
