What are the best ways to save money on a tight budget?

Some of the best ways to save money on a tight budget include avoiding impulse buys, using free budgeting tools, comparison shopping, negotiating bills and automating your saving. These steps prevent you from paying more than you have to and help you save money for more important things.

Make a Budget

Best Ways to Save Money on a Tight Budget

1. Avoid impulse purchases

Buying items that you don’t need on a whim can lead to overspending and possible debt, even more so when you are working with a tight budget. It’s important to ensure that every purchase you make fits into your budget plan, and that requires being thoughtful and deliberate.

Tips to Avoid Impulse Buys

• Give yourself a waiting period to determine if an unnecessary item is worth getting.
• Have a list while grocery store shopping and stick to it.
• Avoid shopping while hungry or upset.
• Don’t store your credit card on any online shopping sites.
• Set aside a small amount in your budget for impromptu purchases, so you won’t go over your budget.  

2. Cook meals at home

Going out to eat at a restaurant or getting food delivered tends to be more expensive than cooking your own meals at home. If you don’t have time to cook every day, you can do meal prep and prepare a week’s worth of meals and snacks in advance.

3. Look for free entertainment

Movie tickets, concerts, and sporting events can eat up a big chunk of your budget, but there are places and activities you can enjoy that won’t cost a cent. These include:

•  Community festivals
• Public parks
• Local libraries
• Community centers

4. Use coupons

Collect coupons for merchants you visit frequently. You may find these coupons in the mail, on the merchants’ websites, in their apps and on some third-party sites. There are also some apps or browser extensions that can automatically find you coupons or discount codes you wouldn’t have known about.

5. Opt for generic brands

You’ll pay top dollar for name brand items. However, many products have generic versions with similar ingredients that cost much less. Some examples include:

• Medications
• Cleaning supplies
• Shampoos
• Canned goods
• Condiments
• Spices
• Soap

6. Reduce energy use

The less energy you use, the lower your electric bill will be. Some ways to reduce your energy use include:

• Take shorter showers 
• Use more energy-efficient lightbulbs and appliances
• Turn off lights not in use
• Lower your temperature setting on your water heater
• Turn down the thermostat during winter months

7. Avoid paying credit card interest

The interest rates on credit cards are much more expensive than the interest rates on mortgages and auto loans. Try to only use your credit card for things you can afford, so you’ll have the money to pay your bill in full each month. You’ll avoid interest charges entirely that way.

8. Use free budgeting tools

There are many free budgeting tools, like the ones available on WalletHub, that can help you monitor your spending and identify areas where you can save. These tools can also make it easier for you to set savings goals and track your progress.

9. Shop around for the best deals

The same item you buy at one store may be half the price at another store, so compare prices from different retailers to find the best deal. Factor in any discounts or shipping fees that may make the product cheaper or more expensive than the advertised price. Some items you should comparison shop for include:

• Electronics
• Clothes
• Insurance
• Food
• Appliances
• Furniture
• Cars
• Internet
• Cable
• Plane tickets
• Credit cards
• Bank accounts

10. Negotiate bills

Contact companies like your internet provider to see if they have any promotional offers that can lower your monthly bill. You can also see if they are willing to match a competing company’s price.

In addition, if you contact your creditor, you may be able to get a lower interest rate or a more favorable payment plan. About 41% of people who’ve asked for a credit card late fee to be waived have been successful, for example, and 77% of people who’ve asked have been successful in getting their credit card company to improve their account terms in some way, according to a WalletHub survey.

11. Automate your savings

You can set up your checking account to automatically transfer funds to your savings account every time you get paid. This can prevent you from spending the money before you have the chance to save it.

12. Review your budget weekly

Regularly reviewing your budget allows you to quickly identify areas where you are close to overspending so you can adjust before the month is over. The tighter your budget is, the more careful supervision it will need to keep working.

For more ways to save, check out WalletHub’s top tips for saving money.