We’re told again and again that we should save money. When our budget is tight, however, this is easier said than done.
Putting money aside on a regular basis can feel impossible when your budget is small. That’s why we’ve put together some simple but effective tips for saving money – even on the tightest budget.
1. Consider a High Yield Savings Account
When we hear ‘high yield savings account’, we often assume they are designed for millionaires with lots of spare cash. This is not the case.
Many high yield savings accounts are managed by online banks with zero fees and low minimum deposits.
Even if you’re on a small budget, a high yield savings account could get you far more interest than regular savings accounts with your bank.
Remember, it can be tempting to make payments from savings account. No matter what sort of savings account you have, try to use that money only for emergencies or whatever you are saving for.
2. Explore Round-up Savings Apps
If you can’t afford to make bulk payments into a savings account every month, a round-up savings app could help you put small amounts of cash aside without even noticing it.
Round-up savings apps are linked to your credit or debit card and simply ‘round up’ your payments and save the extra cash. For example, if you buy a coffee for $2.80, the round-up app will put 20 cents aside.
The amounts being set aside are small, but they quickly add up – making round-up apps an easy and painless way to save. There are lots of great round-up savings apps out there – such as those on this list put together by Forbes.
3. Do a No-spend Challenge
When trying to save money, we’re often told to cut out unnecessary expenses such as coffees, meals out, or clothing.
The reality is, however, cutting out everything fun from our life isn’t sustainable. Chances are, you’ll try to cut everything out and then overspend when you ‘crack’.
A more sensible route is to do a no-spend challenge. This is when you go for a set amount of time without unnecessary spending.
This could be for a week, for a month, or even one or two days a week.
Not only will you save money, but it will also be far easier than trying to never spend again and you may even find there are some expenses you can happily live without.
4. Shop Around for Better Rates and Providers
When we’re budgeting, we often imagine our fixed outgoings as unchangeable. But whether it’s your electricity bill or your car insurance, spending time shopping around for better rates can make a great difference to your finances.
In addition to finding better rates and cheaper monthly payments, many providers offer introductory bonuses and perks. Changing banks could earn you an introductory one-off cash payment.
Changing your internet provider could get you a free gift, which you could sell and put the money into savings.
Do your research and spend some time investigating other providers for your monthly outgoings – the money you save could then go into a savings account.
Saving money on a tight budget is difficult and there is no single approach that will simplify savings for you. With these tips, however, we hope we’ve given you some inspiration and ideas that will make it easier to save this year.