Living on a tight budget often means having next to nothing to stash away at the end of the month. For many, this means living without a savings account. The issue? Saving is essential, whether it’s to mitigate the financial repercussions of an unforeseen emergency or work towards financial independence. Are you struggling to put funds away? If so, here are five ways to put money in a savings account on a tight budget.
1. See If There Are Any Unnecessary Expenses in Your Budget You Could Remove
It’s important to remember that treating yourself is absolutely okay. That being said, there may be some areas in your budget where you’re overindulging, which can result in spending more money than you’d like to.
Now is the time to reassess your budget and lifestyle. Are there any small changes you could make? For example, working out at home rather than paying for a gym membership might help you save more. You can then take this excess and save it for a rainy day.
2. Round Up Your Purchases (or Stash Away Change)
One strategy to save more if you don’t have much wiggle room in your budget is to simply round up purchases and stash away the change. For example, if you spend $100.20 on some items at the store, you can take that extra $0.20 and put it in your savings account. For those who only use cash, you can store your physical change somewhere until you’re ready to cash it in at the bank.
3. Find a Side Hustle to Generate Extra Income
You can only do so much with the income you have, which is why making more is always hand-in-hand with cutting down on expenses when it comes to making more room in your budget. One way is to look for a side hustle. Whether you want something simple like taking surveys or you have marketable skills that you can use to land freelance jobs, there’s something out there for everyone!
4. Look for a Savings Account That Will Support Your Saving Efforts
It’s not just about saving; it’s about saving strategically. You want to make your money work for you, even if you’re only saving a small amount each month. Set aside some time to research online banks that offer high-yield savings accounts with desirable terms so that you can slowly grow your savings over time.
5. Set a Goal and Stick to It
No matter how much you can dedicate to saving, set that goal and stick to it. Every time you get paid, transfer a specific amount to your savings account then use the rest to pay for essentials. When you put your mind to saving and you build healthy habits, it becomes much easier to make saving a priority.
Saving what you can is always a great way to prepare for the future. Use the five tips above to figure out how you can squeeze saving into your budget and develop better financial health and stability. As they say money saved is money earned.