Living on a tight budget without feeling deprived can be difficult without the right habits in place. By following these easy steps, you can save money even on a low income. The freedom from anxiety that comes with saving money is so worth the work it takes to start saving.
Let’s dive in and start saving!
24 Easy Ways to Save Money on a Tight Budget
Why you need to start saving money on a tight income today
When we were newlyweds, I constantly felt the stress of not knowing where our money was going and whether or not we’d have enough money to pay for new tires or other unexpected expenses. Learning to save money even though our budget was small in the beginning has really helped us financially as our family has grown – especially with stress management!
Tips for budgeting money on low income
These are the best frugal living tips on a tight budget. If you’re looking for simple money saving tips that actually work and ways to save more with a tight budget, then keep reading this simple guide! Learn how to save money daily with no effort! Smart money management means following these awesome tips!
Let’s get started with the basics.
Pay yourself first
My husband has always been frugal! Before we were married, he always had extra money in his bank account at the end of the month. Me on the other hand? I had to work to not spend every penny and dime while we were in college! But, I always had a savings.
How?
I paid myself first.
I set-up a simple draft from my account at the same time every month to make sure I was at least putting something away and not spending every dime.
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Set-up a simple zero-based budget
A zero-based budget gives every dollar a job. From your bills to your subscriptions to your retirement accounts, assign every something to do. Here’s a post about a simple budget template printable that has a zero-based budget free printable hat I think you’ll find super helpful!
Try the cash envelope system
If you have difficulty controlling your spending in certain areas (for me it’s eating out… I love me some Chipotle), cash would be a perfect option for you to try! The best budget categories for the cash envelope system include eating out, clothing, or gifts. Instead of heading off to the store with that hard-plastic, only bring enough cash to make you stick within your budget!
Try a 30 day savings challenge
I LOVE doing challenges with other people because it holds me accountable! Also, I sometimes know what I SHOULD do. But I also like it when someone just tells me when/where to do something. I’m already a mom that is in charge of everything, having someone else do the thinking for me that I can trust – allows me to put brain power towards other things!
Here’s a 30 day savings challenge that is perfect to start saving more monthly. I researched all the best ways to save money and put them in one e-mail challenge.
You’ll receive easy, actionable tips once per week that you can accomplish in 30 minutes or less each day.. Each tip will help you reduce expenses and help you reach your family’s financial goals! Let’s do this thing!
Save money at home
Let’s be honest – our homes are a dumping ground for our hard-earned money! It’s literally flushed down the drain somedays! So, let’s talk about simple ways you can save more money in your home!
Cut the cord
Thankfully in the 21st century there are so many options outside of classic cable (and that are cheaper!) Unfortunately, cable prices have increased considerably even compared to the price of inflation. Consider cutting the cord and switching to an easy-to-use service like YouTubeTV combined with Netflix.
Every $5 adds up
Consider cutting just $5 in every category on your budget. This might mean one less coffee per month, 2-3 items off your grocery shopping list, or choosing to walk instead of drive 2-3 times per month. Each little choice adds up to big savings!
Added bonus: every time you choose to save, transfer that money to your savings account. Eat-in for lunch instead of going-out? Transfer that $8! Use a coupon? Great, transfer away! This will also help you build better habits.
DIY Everything
Not gunna lie, I feel super lucky that my husband likes woodworking and DIY. I find something I like on Pottery Barn, and he builds it for me! That being said, we started out small with simple ideas mostly from Ana White.
You can save soooo much money by DIY-ing projects yet still having a beautiful home! Most projects require a small investment in tools, but if you commit to this process, you’ll pay off the investment within 2-3 projects!
Pay off high-interest debt
In 2020, a 60 month new car loan had on average a 5.15% interest rate. On a $26,000 small SUV, that’s over $3,500 paid in interest – can someone say goodbye, cruise? Paying off debt or saving up before hand can save you so much money!
But even more dramatic, credit cards that assessed interest the first 3 months of 2020 charged interest of 16.61%. By working to pay off your debt, you’ll have more freedom to pay yourself rather than paying-off the lame bank interest!
Look at your food habits
I can almost guarantee you that if you really looked at your eating habits, you’d find places to save in this area of life – I mean, I can’t be the only one that lives for the next meal!
Here are a list of healthy school lunch ideas as well as some budget-friendly lunch ideas.
Analyze your eating out
Most people when they begin their budgeting journey, take a look at eating out first. I’m not telling you to stop eating out….I’m not telling you to give up your speciality drink…I’m just recommending you analyze your eating out habits, and see if you’d rather be spending that money somewhere else!
Grocery shop once per week
Creating a meal plan (which there’s a free printable in the 30-day Simple Savings Challenge by the way), is one of the best ways to save money on groceries. You have less chance of throwing away unused groceries, and you also save money by shopping once per week and spending less money/time on gas with another trip to the grocery store.
Buy in bulk
I swear my kids are about to eat me out of house and home and the oldest is only 6!
Here’s a list of items we buy in bulk for a family of 5 (in no particular order!):
- Fig bars
- Frozen chicken
- Ground beef
- Oatmeal
- Cereal
- Eggs (60 count every couple weeks!)
- Cheese
- Bread
- Granola Bars
- Belvita Bars
- Cereal
- Peanut Butter
- Ketchup
- Ranch
- Meat balls
- Chicken Nuggets
- Corn Dogs
- Noodles
- Rice
- Apples
- Onions
- Olive Oil
- Balsamic Vinegar
- Garlic Powder
- Italian Seasoning
- Minced Garlic
- Salsa
- Popcorn
- Baking soda
- Vinegar
- Red Wing Vinegar
- Hot Pepper Flakes
- Hot dogs
- Coconut Oil
- Avocado Mayo
- Strawberry Jelly
- Fish sticks
- Dried noodles
I honestly mostly focus on the cost per ounce that’s listed at the grocery store before I buy! I try to compare off-brands to name-brands. When looking at off-brands, I often look at sugar content and added ingredients to see if it’s something I would want to feed my family!
One of the easiest grocery hacks in the book to spending less on groceries – compare before you buy! Sometimes the bigger bottle isn’t actually cheaper. Every couple of trips I look at the cost per ounce for an easy comparison reference!
Meatless Mondays
This is a great way to spend a little less on meat (which is often the most expensive part of a food budget!) Try some easy vegetarian meals on Mondays. And by easy, I mean realllllyyy easy. Spaghetti with no sausage. Eggs with breakfast but no bacon. PB&J sandwhiches instead of sandwhich meat. You get the picture!
Entertainment and Activities
A really good budget is going to allow you enough freedom to still enjoy life, plan fun activities, but also meet your financial goals! Here are some tips to save money on entertainment and activities for you and the fam-bam.
Check monthly subscriptions
I don’t know about you, but I’m always a sucker for the free 30-day trial of subscription services. And then, of course, the next month they get me!
Doing a periodic check of subscriptions is always a great money saving tip! Ask yourself these questions:
- Do you still use the subscription?
- Is it adding value?
- Are you able to find the same service for cheaper elsewhere?
Add free activities to your schedule
Until I started focusing on our savings goals, I never really realized how many free activities there were in my local area. From going to local parks to participating in our city volunteer programs and parades, we find free activities to entertain our kids and fill our time! This is a HUGE cost saver since things like movie tickets, dining out, and sports activities can add up quickly.
Check out the local rec center
The local recreation center might just be a gold-mine waiting to be discovered. In our area, the family plan is less than $450 per year. It includes free childcare for kids 8 and under for 2 hours EVERY DAY. While not the fanciest gym, it’s got group exercise classes, weight equipment, and cardio available.
As a stay at home mom, living on one income, this is a HUGE resource for our family and I don’t think enough families take advantage of this great offer in their local area!
Unsubscribe from emails
Just like my monthly subscriptions, I often sign-up on company lists to get that coupon or free product. But overtime, the e-mails just become junk clogging up my notifications feed. Either that, or I mindlessly browse the stores online and spend money needlessly!
Unsubscribing from e-mails both unclutters your inbox/mind and saves you money by not tempting you. Win-win!
Transportation
Right after housing, transportation is often the biggest expense per month for a family.
Here are some tips to reduce your transportation costs:
Choose to walk
Do you live within walking distance of your favorite restaurant or your closet grocery store? If you just need a few items, plan a walk! You’ll save money on gas and get in some extra steps for the day!
Consolidate your trips
I can’t say enough about meal planning and grocery shopping once per week! We live less than 5 minutes from the grocery store, but time adds up even if you only need a few items!
I truly believe that time = money, so if you’re minimizing the trips to the grocery store, you’re saving yourself time! Also, unless you have self-control superpowers, you’ll also save money by spending less time out buying random items you don’t really need!
Reduce your car insurance
It’s a pain, but a necessary pain. Taking the time to shop car insurance every year or every couple of years can be a huge money saver! I’m not sponsored by Geico, but I’m just saying, that commercial works for a reason! Can you actually save 15% by switching to a different car insurance? Have you tried?
Reduce Waste
I love this mindset! But, I’m not only talking about reducing wasted money. I’m talking about keeping in mind the idea of reducing waste coming from your home!
Remember that old song from school: recycle, reduce, reuse? That’s what your goal should be for all products you bring-in or send-out of your home! Convenience is such a slippery slope… and while I definitely buy some convenience items, the savings amounts for buying used or not buying convenience is too big to ignore! Just try it for yourself!
Swap, don’t buy
Swap parties are a great way to hang out with friends and also score some new loot! Between baby clothes swaps to maternity swaps, host a little swap meet with your friends to swap out gently used items – there’s lots to love about swap meets!!
Buy used or shop free online
We LOVE Facebook marketplace – whether buying or selling items online. But it does take some patience! Before you buy, see what’s available in the local area, you might be pleasantly surprised!
Rent for special occasions
I absolutely love looking at designer dresses on RentTheRunway for special occasions! I mean come on, how often do you ACTUALLY reuse that dress. Unless you’re buying a classic black dress or summer maxi that can be dressed-up or down, renting clothing for special occasions can be a fun money saving tip and you’ll still be stylish!
Plus, you have the added bonus of not wearing a piece of clothing one-time and that throwing it out – reduce waste!
Don’t shop for convenience
Bottled water, individually wrapped cereal boxes, and other small packaging items all of their time and place. But with all of these items, you also pay for convenience and additional packaging. When buying an items, see if there’s a more “bulk” version that will both reduce waste and save you money!
Other questions about how to save money and to start budgeting on a small income
How can I save money on a low income?
According to the Federal Reserve, in 2018 45% of Americans made less than $50K as a family. The key to saving money on a low income is saving small.
If you have only $20 per month to save, save it because it eventually adds up! Savings of $20 per month is equal to $240 per year.
What is the best way to budget money?
If you are new to budgeting, I recommend starting with a simple, zero based budget. This means budgeting every single dollar to give it a job. One of the biggest mistakes people make is to assume that will just put money in savings at the end of the month.
Many people like the popular 50-30-20 budget, which allocates 50% to needs, 30% to wants, and 20% to savings. To make this effective, move 20% of every paycheck to savings as soon as you receive your pay.
Here are some tips to manage a budget for stay at home moms, but it’s really great for anybody looking to better manage their budget!
How do you live below your means without feeling deprived?
Mindset is absolutely key for this. This is a HOT topic for those families looking to move to one income post-baby, but it is totally possible to live below your means without feedling deprived.
Here are the benefits I focus on when it comes to living below our means:
- I focus on building wealth. When I know the dollars we are savings are going towards building wealth for our future, it makes it worth it.
- Freedom from anxiety. Knowing that we can cover unexpected expenses creates a level of calm and peace even though we are living below our means and not keeping up with the Jones.
- Ability to give. I love that by saving and by living below our means, we have more freedom to give, whether that be to our church, having a spontaneous dinner, or just gifting a friend with a hot cup of coffee – guilt free!
How to save money each month
Small changes and changes to your habits are how you start to save money each month. I highly recommend signing-up for the popular 30 days simple savings challenge. You’ll receive daily actionable tips to save $100s every month.
Last thing you need to know about living on a tight budget
Be flexible. The best thing I learned about budgeting is to be flexible. There is no such thing as a “normal” month. Be ready to move money around between categories.
When you have a budget in place, it’s okay to give it a different job mid-month. The key is recognizing the need for change in the first place!
Don’t forget to sign-up for the savings challenge!
If you want more awesome tips to start saving more money every month, don’t forget to sign-up for the 30-day Simple Savings Challenge! I’ll send you daily actionable tips to reduce your expenses to smartly meet your family goals! Yay! There’s also 3 printables includes in this savings challenge to help you meet your goals! Sign-up for this awesome 4-week savings challenge here!
What Should You Read Next?
Here are some other related posts you might like:
- No Spend Challenge Free Printable
- 14 Ways Real-Life Married Couples Handle Finances
- 9 Steps To Get on a Budget When You’re Already Behind
- Side-Hustle Ideas to Make Extra Money from Home
- How to thrive on one income with a baby (not grocery hacks)
