- By Emma Andrews
- Posted June 9, 2020
Top Tips for Saving When You’re on a Highly Limited Budget
Saving money isn’t easy, especially if you’re already on a highly limited budget. However, if possible, it’s very important to set aside at least a little money each month for the future, regardless of the amount of income you’re currently earning. Carefully saving a little bit each month will give you peace of mind for the future and help prepare you in the event of a financial crisis. Here are three top tips for saving on a tight budget.
Focus on Cutting Debt
Getting out of debt is extremely important when you are on a limited budget. There are many reasons why this is important, but one of the biggest reasons is that cutting debt now will save you money in the future by helping you avoid paying interest as much as possible. As you look at your budget, you should first take care of savings and debts. You can then allocate your remaining funds towards your expenses. Make getting out of debt a priority in your budget plan each month. The sooner you get out of debt, the sooner you can start saving that money.
There are many financial assistance programs and services that people may not know about. For example, Social Security Disability Insurance is a federal program that provides cash payments to those who meet their definition of “disabled.” SSDI is typically available to anyone who has paid into the Social Security system for at least ten years, regardless of their current income and assets. The amount of SSDI assistance you receive will be based on your average lifetime earnings. Of course, please note that SSDI is capped at $3,011.
Cut Back on Expenses
Another great way to save while you’re on a tight budget is to look at ways that you can cut back on your expenses each month. You might try switching out your cable or satellite TV service for something less expensive, cut back on eating out, or look for inexpensive entertainment options.
Of course, you might have already cut unnecessary items out of your budget. If this is the case for you, you could try saving $5 or $10 per each category in your budget, and setting that aside for savings. For example, it’s often possible to save $5 to $10 dollars when grocery shopping if you drop two or three items from your list, or you could adjust your thermostat so that you pay less in utilities every month.
Even if you’re on a tight budget, you could save money by prioritizing getting out of debt, finding assistance, and cutting back on expenses. You might be surprised at how much you can save through these three strategies.
If you’re struggling with your finances, we can help you make a plan to get them back on track! Contact us to begin your journey toward financial independence!