The year 2020 is over, today is 2 January 2021. Hmm… What happens exactly in 2020? You know, all Covid-19 stories, right? To be honest, 2020 is a bad year almost for everyone in my family. Most of my family members lose their jobs, but as a government servant I still able to work. And I still receive my salary as usual.
My husband does not work, and most of my siblings do not work because of Covid-19. The only ones who still able to work are my sister who is working as a nurse and me a teacher, both of us, government servants. And you know what, I need more money so I can help my other sibling with their monthly budgets even if only a little.
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I also need to save money for future use, yeah, we do not know until when I can work. I hope 2021 becomes a better year than the years before 2020. Where we can do anything and go anywhere, lots of job opportunities and so on. But after 2020, I started thinking, anything can happen. Nothing is guaranteed in life.
After what happened, I not only had to use the money for daily living but had to save money for emergencies and future use. With a salary that is just enough, how else do you want to save money? In this blog post, I want to share 15 Ways To Save Money On a Tight Budget.
15 ways to save money on a tight budget
1. Set aside 10% of your income – Every time you receive a salary, the first thing you need to do is pay yourself first before paying off another debt. Set aside 10% or more. However, if it is not enough, save at least 5% into another account. Do not mix savings and salary money in the same account. Make it seem like this account is one of the bills you have to pay every month. Do not spend money in a savings account to buy something unnecessary.
2. Track your spending – First of all, track everything! Yes everything, even the simple one must be tracked. Including all small things like snacks and stationary. Prepare one tracking paper for one month. Write down all the debts that need to be paid every month, record every time you go to the market to buy goods, record how much car fuel you use for 1 month. Keep all receipts you buy in the market. Track any item you always buy and when you need to buy it again. Through this tracking, you will know which one is a necessity and which one is not necessary.
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2. Bring a list when buying items – Once you have tracked everything you have, you now know what items you have to buy every month. Make sure you buy only what is listed in the list. Avoid buying items that are not on the list even if there is a sale at that time.
4. Know the needs or wants- This is another thing you must know. After tracking everything, you now know the difference between what you need and what you want. For example, you need to buy food to cook during lunch but you do not need a snack to watch tv. You have to pay for the phone bill, but you do not need a new phone casing. Remember to think like this when you want something, can you live a normal life if you do not buy it for a week? If so, there is no need to buy that item.
5. Avoid Credit Cards – Avoid paying using credit cards. To be honest, I do not have a credit card. Because I know how I spend. You will have a hard time controlling your spending habit if you have a credit card, and you will even pay more because there are hidden charges. All I have is a debit card. Debit cards work like cash which you will only use when you have money. Debit cards can also be used to buy goods online or pay at the market such as credit cards. The function is still the same, the difference is you do not owe anyone.
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6. Meal planning – This is the most important. For me most of my money is spent here. With a family of 6 people, you can imagine what I bought. The key is meal planning. Make a plan for a week, a month if possible. Plan what food for breakfast, lunch, afternoon tea, and snacks you need to eat every day for a week. Prepare a grocery list to make it easier for you to buy the goods later.
7. Shopping when sale – If you must shopping, shopping for necessities during the sale, buy goods in bulk. This may take some money at first, but it will make it easier for you later. You will save more money. Remember this only applies to necessities and not wants. I usually shop for kitchen items once a week. But if there is a sale, I will buy in bulk for use next week. So, next week there is no need for shopping anymore.
8. Downgrade services – Downgrade your Netflix services, take the cheapest or basic plan, or if you think you rarely use Netflix just cut Netflix. Use prepaid instead of postpaid phone services. Reduce phone usage and use WhatsApp. Sell cars you do not need (If you think two cars burden you).
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9. Save electricity and water- Remove every plug you do not use. Use a fan instead of an air conditioner, use electrical appliances that save electricity. Avoid charging the mobile phone when it is full.
10. Less eating out – If you already have a meal plan, it not only helps you to save, but you will eat less outside. Outdoor food is more expensive. Try to cook yourself and eat less outside if possible. Bring lunchbox while working or warm up leftovers.
11. Cut unimportant insurance – If you have insurance that you feel is not important, you can cut out the insurance. Take out insurance that protects you and your family. If you are worried about a disease you may be experiencing in the future, do a health check. And if you are found healthy, cut out the insurance and practice a healthy lifestyle from now on.
12. Sell what you have – Sell everything you do not need. You do not have to store all your belongings as a collection, just keep a little. Sell clothes that are still good or do not fit anymore. This also helps clear your house.
13. Do a $5 challenge – I used to do this, every time I had $5, I would not use it. If you find it difficult to save money, you can use this method. Each time you get $5, set it aside and keep it in a box. You will be surprised to see the results later. After a month, you can track how much money you have saved. You will know how much money you can save each month.
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14. Rent your house or car – If you have to pay for 2 houses or cars, you can rent your house or car to reduce the monthly payment while using the rent money to pay the loan.
15. Do the extra part-time job – If you really lack money and no money to save, the last step is you need to do a part-time job. But with the current situation, it is difficult to find a job. You can be a runner or a personal shopper, so you can help others by buying their stuff and you can buy your own too.
So, that’s are 15 ways to save money on a tight budget. But the most important thing is discipline. You have to sacrifice a little to save more money. Remember one thing, always practice a healthy life, you do not want to spend your money by going to the clinic to buy medicine. I hope this post helps ya!. Don’t forget to share this post with your friends.
Wish you luck!