Are you looking for ways to save money on a tight budget? Do you have limited disposable income to work with? How do you save when you live paycheck to paycheck? The following money tips can be used by anyone.
I’m not going to tell you to cut the cable, get a cheaper phone plan, use a coupon or any other such advice because the first thing you need to do is understand your spending habits and a few basic principles about saving money.
If you take away only one idea from this post, you will be taking an important step forward in creating a secure financial future for yourself.
It’s never too late or early to start saving for your future
Live on Less Than You Earn
Many people spend what they earn or more which leaves them with no savings. Find yourself in an emergency situation and Hi-Ho into debt you go. If you want to be financially independent, you must-, repeat “live on less than you earn”. I regret not learning this simple lesson earlier in life.
Start by auditing your recurring expenses to find any unnecessary expenses and creating a monthly budget that keeps you withing your earnings. If you have credit card debt you must absolutely positively stop using them.
If you need a little motivation, try reading the classic book Your Money or Your Life. I suggest the Kindle edition, so you always have a little financial inspiration with you.
Live Debt Free
If you are currently in debt repayment mode or are recently debt-free, don’t forget how it feels or once felt to be saddled with debt. If you are just starting out on your debt-free journey start reading about people who have paid off massive amounts of debt without receiving cash windfalls. Think of debt as indentured servitude. I really love the book Affluenza.
Consumer debt is avoidable and an unnatural by-product of the industrial world.
Identify Your Personal Spending Triggers
It doesn’t matter if you’re on a tight budget or have tons of discretionary cash laying around, most people have those triggers have then to some extent. When you make a purchase and feel, bad afterward chances are it was an emotional purchase of something completely unnecessary. Understanding and recognizing the emotions behind your spending might help to keep it under control. Feeling stressed, go for a walk and no you don’t need to buy new walking shoes first!
Be Mindful of Dollars and Cents
Remove the phrase ” but it’s only a few dollars” from your vocabulary. A few dollars here and there will add up quickly.
Save Money With a Purpose
A house, car or even a new computer gadget. Figure out how many weeks, months or even years until your purchase and save accordingly. Use a separate savings account and decline the ATM card.
If you like to splurge a little around the holidays, open up an old fashion Holiday Club account and save a few dollars every week. Only spend what you have saved up in the account.
Start and emergency Fund
Even if it’s $2 a week or extra change you save in a piggy bank, it’s all money saved for an unexpected expense and can very possibly keep you from using a credit card and going into debt.
Whether your trying get out of debt or saving for a home, stay focused and you’ll reach your goal of financial security. I hope these simple ideas and ways to save money on a tight budget helps you on your journey to living a debt-free lifestyle.
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