Ready to save money? If you’re in a tough financial spot, budgeting and saving are some of the most important things you can do to help your situation and protect your financial future. We all know how hard it can be to make ends meet these days, and how expensive everything seems to be. But saving money does not need to feel like a chore; there are many ways that you can start saving right now, without spending any extra time or effort. Read on for 10 different ways you can save money when you’re broke.
10 Ways to Save Money When You Are Broke
If you’re struggling to save money and want some ideas for how you can put away some cash, check out the tips below.
Spend Less on Groceries
Groceries tend to be a big expense for a lot of people. Finding ways that you can cut back on your grocery budget can help free up some extra cash each month to help build your savings. Whether it’s finding clearance items, using coupons, or buying store brand instead of name brand items, small savings can quickly add up to help reduce your grocery bill.
Find a Side Hustle
Sometimes a second job or source of income can make a big difference in how much money you have to put away for savings. Whether that’s picking up a freelancing gig or starting a business on the side, finding additional ways to make money could help you save up and work your way toward financial freedom.
Create a Budget
A budget can be a powerful tool when trying to save money, especially if you don’t have a lot to begin with. When creating a budget, you could set a specific amount each month you want to save or, at the end of the month, you could just put all leftover money into your savings.
Get Rid of Debt
While it may sound like paying off debt isn’t helping you save money, it actually can be one of the most impactful things you do to save money. This is because debt generally has a high interest rate—which is additional money you’re paying on top of the original loan or bill amount. Paying off your debt as soon as possible can prevent you from paying more than necessary in interest charges. This means you could have more money available for saving.
Save on Travel
Travel can be an expense that people don’t want to cut out, but there can be ways to save money on it. Whether that’s staying at a cheaper hotel or deciding to do a staycation instead of going out of town, there are ways to save money while still getting to enjoy a vacation.
Dine Out Less
Dining out or ordering takeout are significantly more expensive than cooking at home. This makes it a great opportunity to save money by firing up the oven instead of pulling out your credit card. These savings can be even greater if you cook for more than one day at a time through a meal prep plan.
Automating your savings can help you build up your fund without even thinking about it! It can be as simple as having a small portion of each paycheck transferred to your savings account every month. Automatic savings can help remove the money from your account before you’re tempted to spend it, boosting your chances of savings success.
Many things in life are negotiable. From how much you pay for cable, to how much you spend on a new dishwasher purchase and everything in between, you could try negotiating the payment amount or extra incentives with your purchase (like a free month for cable). Be sure to negotiate on as many things as possible so that you can save money on them. While there may be things that are not able to be negotiated, it is worth the effort to see if you can get a price reduction.
What many people don’t know is that creditors will sometimes also negotiate on debts. So, if you’re struggling to save because you’re working to pay down debts, try negotiating with your creditors for a lower amount, lower interest fees, or new payment schedule. Debt settlement companies specialize in these negotiations, using their leverage and experience with creditors to help their customers become debt-free for a fraction of what’s owed. In fact, CreditAssociates has helped thousands of clients do just this! Learn more here: How It Works, or give us a call today for a free consultation: 1-800-983-6693.
Why You Should Save Money
Saving money is important because it teaches how to manage your money and use it responsibly. If you don’t know how to save, then when something unexpected happens or an emergency situation arises, you will not be able to take care of yourself without having another expense.
It also will allow you to have money to spend on things that are important to you. This can be something as simple as buying clothes or going out with friends, but it will be worth the effort when you’re not spending all of your time worrying how you’ll pay rent at the end of the month.
Common Questions About Saving:
What should I do with my savings?
Determining what to do with your savings is a personal decision. You can save your money and add it to the total amount you have in savings, or you could use some of your earnings to invest and try to grow your net worth.
What is the difference between saving and investing?
The main difference between saving and investing is how quickly your money will grow. If you keep your savings in a standard savings account, it may not earn any interest at all (or very little). Investments like stocks or bonds can help return more than just the value of your original investment within a few years.
What is the 30-day saving rule?
The 30-day saving rule is a simple principle in which you put off any nonessential purchases for 30 days. This will benefit you in a couple of ways. First, it will give you some time to decide how important the purchase actually is. Second, it will also help break some negative impulse shopping habits that you may have bit up over the years.
Should I save or pay off my debt?
This is a question that cannot be answered easily. Some people will say to pay off your debt as fast as you can, while others may recommend paying it down slowly and focusing on saving money first. You’ll want to take a look at factors like interest rates, what you currently have saved up, and how much debt you have. All of these things will help give a clearer answer as to when you should pay it off.