Key takeaways
- If you’re looking for realistic ways to save money, you might start by focusing on small changes first, such as making lunch at home, brewing your own coffee and cutting unnecessary subscriptions.
- While there are many ways to budget and save money — such as the 50/30/20 rule — the key is to find a method you’ll stick with and use consistently.
- Once you have your budget, you could automate your savings by setting up direct deposits into a high-yield savings account and using cash-back apps to save money on daily purchases.
- If you have an employer-sponsored retirement plan like a 401(k), maximize your contributions to lower your taxable income and build savings.
Finding ways to budget and save money seems harder every year for Americans. A new Bankrate survey reveals that 59 percent of those surveyed are uncomfortable with their level of emergency savings. Inflation is the big culprit holding people back from saving more, with 63 percent saying skyrocketing costs cause them to save less for unexpected expenses.
There is no “one size fits all” solution to increase your savings while living on a tight budget. In most cases, it takes dedicated effort and a combination of approaches. These 14 tips provide some of the best actionable strategies to trim costs and grow your savings, even on a limited income.
1. Focus on small changes in various budget categories
Being on a tight budget means every spending decision adds up, but you can start saving money by making small changes. For example, the money saved by making lunch instead of buying carryout or eating out can easily add up. The same is true with brewing your own coffee rather than stopping for a cup at a coffee shop.
Some other potential changes include:
- Turn lights off when you’re not using them.
- Cut the cord on cable and opt for cheaper streaming services. Streaming services often have shared or family plans that you can split between multiple people to lower the cost even more.
- Avoid impulse purchases. One way to do this is to implement the 30-day savings rule. Whenever you’re tempted to make an impulse purchase, wait 30 days before deciding. Use the time to evaluate whether you need the item and if it’s worth sacrificing your savings goals.
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