Even with a prudent budget and a solid financial plan, it can be hard to balance spending and savings on a fixed income.
However, living on a limited budget does not have to mean sacrificing comfort or dwindling away a savings account.
Here are three ways to spend less and save more on a limited income:
If you are traveling locally, ditch the car. Walking or biking to work or the corner store will help you save on gas and decrease the wear-and-tear on your vehicle. Plus, you are contributing to your physical health and helping the environment.
Call it frugal or thrifty, bargain hunting has become a challenge for some and a way of life for others.
Between all of the brick-and-mortar stores and online shops, you are cheating yourself if you do not shop around for a good deal. Some simple ways to save money include:
If you are tech savvy, do an online search for price comparison tools, and you will find multiple apps designed to help you save. This might sound like a chore, but the savings adds up over time.
Also, crunching numbers keeps your mind active and young!
Using prepaid debit cards or gift cards can be a good option for cash and credit/debit cards because they limit spending; once the money is drained, nothing can be purchased until it is refilled.
The first step is to reference your budget and at the beginning of your first month purchase refillable cards with the allotted amount for each category. There are a couple options:
Either way, start each month off at the budgeted amount. Instead of “rolling over” unused money from the previous month, put that extra money into savings.
By making simple adjustments, you will find that it is possible to spend less money and therefore save more.
Put the extra money aside for a vacation or add it to your emergency fund. Start with one or two techniques and gradually add other money-saving habits.
These options might amount to small savings in the beginning, but if you make frugal spending a habit, you will see the numbers add up over time.