5 Saving Strategies Everyone Needs When Money Is Tight

When times are tough, it can be tricky to find enough money to pay for your bills, never mind finding extra cash for your savings too.

However, without a consistent savings fund, there’s nothing to help you reach your long-term goals for financial freedom.

The good news is that just because cash is hard to come by for you right now, doesn’t mean that you have to give up on all of your cash targets. With a few simple saving strategies, you can start to get yourself back on track, one step at a time.

1.   Reconsider Your Budget

If you’re struggling to get by with your monthly wages, then it’s safe to say that your current spending strategy isn’t working as well as it should be. Before you just decide that there’s nothing more you can do to save money, sit down and take a close look at your budget.

Think about how much money you have going out on everything – not just your everyday luxuries. The chances are that if times are tight, you won’t have a lot of cash to spend on a morning latte, but you could be overspending on other things without realising it. For instance, are you paying for a broadband, television and phone package but you never use your home phone? Get rid of line rental to reduce your monthly spend.

2.   Sweat the Small Stuff

When it comes to saving extra cash each month, a lot of people give up before they’ve really started, because they believe that it’s only worth saving if they can put aside a chunk of their wages on a consistent basis. However, the truth is that even a couple of pounds a month eventually adds up to something. Using your newly-adjusted budget, decide how much you can reasonably afford to dedicate to savings each month and ask your bank to automatically transfer that amount into a savings account when you get paid.

While you’re saving, remember to add any loose change to a piggyback in your home too, and transfer that into your savings account once a month as well.

3.   Never Pay More than You Need To

It’s easy to assume that the first deal you find for a product or service is the one with the best possible price. However, when you’re living on a small income, you need to double-check everything you’re paying for on a regular basis, to ensure that you can’t get a better offer elsewhere. There are plenty of things in your monthly budget that you can compare to save money, including your gas and electric bills, and even the price of your car insurance.

One thing that most people overlook is their loans. Don’t just take the first loan option you’re offered when you need to borrow money. Spend some time looking for a deal that appeals to you, with the best possible interest rate you can find. Websites such as Readies.co.uk can make this task a whole lot easier as they compare the best rates from the top lenders across a range of financial products.

4.   Don’t Pay Full Price Unless You Have To

Speaking of making sure that you never over-spend unless you have to, there are countless ways that you can avoid paying full price on everything from your trips to the cinema, to your monthly food shop. Whenever you’re preparing to spend some cash, put an hour aside where you can search for vouchers, discounts and money off for anything that you want to buy.

You’d be surprised how easy it is to find discounts for the items you need today – particularly with so many smartphone apps out there to help you. Additionally, if you’re looking into buying anything that you don’t need “right now” consider waiting for a sale instead of buying items as-is. Save your receipts too, as some stores will refund the difference if you buy an item that goes on sale within a couple of days.

5.   Pool Your Resources

Finally, when times are tight, the most valuable resource you have is your friends and loved ones. Look to the people around you for help and offer them your assistance in return. For instance, if you can’t afford to pay for a babysitter this week, ask a friend to look after your kids for you, and then offer to cook them a meal in return, or pick their children up from school for a few days.

Embracing a community spirit can be a great way to save a lot of money, just make sure that you’re willing to help out just as often as you ask for help. If you ask for too much from your loved ones and give nothing in return, relationships may start to feel a little strained.