How Can I Save Money On A Tight Budget?

By Audrey Korir

When the year began one of my resolutions was to come up with a solid plan on how I can save money to manage my finances better.  Has it been easy? Honestly, No. It is completely okay to admit that the process can be difficult, but from my experience, it can be done. Still wondering how? All you need is a great plan and discipline.

It is time to drop your old habits and adopt new ones that will inspire you to stay on track. Regardless, of how you make your money or how much you make, some easy tips can simplify the whole process.

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These easy tips include:

1^st Tip: Keep track of your expenses:

Many of us, at one point in our lives, are guilty of using the phrase, “I don’t know where all that money went”.   Sounds familiar, right? If this statement applies to you in any way, then it’s time to get rid of that regretful feeling. Ensure you record all your expenses, both planned and unexpected. This will help you track your money and assist in pinpointing the unnecessary expenses you indulge in.

2^nd Tip: Prioritise your expenses:

Nothing messes up your finances like doing the right things at the wrong time, no matter how much money you have. Setting priorities will help you save money by putting first things first. If you have two projects you want to attend to, plan and decide which goes first in terms of the budget available and the time it will take to recover the money spent. Also, give priority to things that bring monetary gain to you rather than those that make you spend your money.

3^rd Tip: Live within your means:

This forms the basics of saving tips 101. Luxury has a way of attracting us, in the sense that we sometimes find ourselves wanting things we cannot afford. Is it worth it, if it will lead to bankruptcy? The lifestyles we choose to adopt will most certainly determine the futures we want to have.   For example, if you earn 50k it does not make sense to be living in a house that charges rent from 6ok and above.  You may think that it is affordable but with all other expenses included you will have nothing left to spend.   Spend less, save more! There is no other way around it.

4^th Tip: Set saving goals:

You may want to save money but this fails to materialize if you do not have a specific reason for saving. To save successfully, have something you are saving for. It could be a trip you’ve always wanted to take, a pair of shoes you have been eyeing and want to purchase or a simple gift for a friend. Having this plan allows you to have a goal to which you work effortlessly to achieve. It keeps all your spending and expenses in check especially if you make it better by adding a deadline.

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5^th Tip: Make a budget:

The biggest task lies here because making it will seem easy but sticking to it is what will determine whether your plans will work.  To save money, list down all your necessities and look for where to find them at reasonable prices. Highlight the unnecessary expenses to track how you can cut down on them. The rest of the money serves well as savings. Walking around without a budget is a bad habit since you end up using your money on things you didn’t intend to.

In short, do not let the impulse of spending money derail you from saving. Whether you just received your salary or bump into friends who want to hang out, it is important to plan yourself to avoid stagnating in your financial growth.

Remember the mantra, Spend less! Save More!